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Vardhman Textiles

BSE:502986
Snowflake Description

Solid track record with excellent balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
502986
BSE
₹64B
Market Cap
  1. Home
  2. IN
  3. Consumer Durables
Company description

Vardhman Textiles Limited, together with its subsidiaries, manufacturing, purchases, and sells textiles in India. The last earnings update was 71 days ago. More info.


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502986 Share Price and Events
7 Day Returns
1.1%
BSE:502986
1.4%
IN Luxury
1.7%
IN Market
1 Year Returns
-6.9%
BSE:502986
-3.3%
IN Luxury
0.1%
IN Market
502986 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Vardhman Textiles (502986) 1.1% 5.8% 6.4% -6.9% 30.8% 236.9%
IN Luxury 1.4% 2% 8.4% -3.3% 47.7% 164.2%
IN Market 1.7% 2.7% 5.8% 0.1% 41.6% 73.3%
1 Year Return vs Industry and Market
  • 502986 underperformed the Luxury industry which returned -3.3% over the past year.
  • 502986 underperformed the Market in India which returned 0.1% over the past year.
Price Volatility
502986
Industry
5yr Volatility vs Market

Value

 Is Vardhman Textiles undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Vardhman Textiles to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Vardhman Textiles.

BSE:502986 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 15.2%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for BSE:502986
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
Luxury Unlevered Beta Simply Wall St/ S&P Global 0.73
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.728 (1 + (1- 35%) (20.89%))
0.884
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.88
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (0.884 * 8.6%)
15.15%

Discounted Cash Flow Calculation for BSE:502986 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Vardhman Textiles is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

BSE:502986 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 15.15%)
2019 -3,426.00 Analyst x1 -2,975.19
2020 2,446.50 Analyst x2 1,845.02
2021 6,067.50 Analyst x2 3,973.68
2022 9,668.66 Est @ 59.35% 5,498.91
2023 13,904.61 Est @ 43.81% 6,867.47
2024 18,483.79 Est @ 32.93% 7,927.87
2025 23,163.51 Est @ 25.32% 8,627.75
2026 27,793.33 Est @ 19.99% 8,990.04
2027 32,311.50 Est @ 16.26% 9,076.23
2028 36,720.21 Est @ 13.64% 8,957.38
Present value of next 10 years cash flows ₹58,789.15
BSE:502986 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ₹36,720.21 × (1 + 7.55%) ÷ (15.15% – 7.55%)
₹519,486.03
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹519,486.03 ÷ (1 + 15.15%)10
₹126,721.38
BSE:502986 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹58,789.15 + ₹126,721.38
₹185,510.53
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹185,510.53 / 56.49
₹3284.01
BSE:502986 Discount to Share Price
Calculation Result
Value per share (INR) From above. ₹3,284.01
Current discount Discount to share price of ₹1,142.25
= -1 x (₹1,142.25 - ₹3,284.01) / ₹3,284.01
65.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Vardhman Textiles is available for.
Intrinsic value
>50%
Share price is ₹1142.25 vs Future cash flow value of ₹3284.01
Current Discount Checks
For Vardhman Textiles to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Vardhman Textiles's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Vardhman Textiles's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Vardhman Textiles's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Vardhman Textiles's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
BSE:502986 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in INR ₹126.68
BSE:502986 Share Price ** BSE (2019-04-18) in INR ₹1142.25
India Luxury Industry PE Ratio Median Figure of 240 Publicly-Listed Luxury Companies 12.35x
India Market PE Ratio Median Figure of 2,735 Publicly-Listed Companies 16.29x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Vardhman Textiles.

BSE:502986 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BSE:502986 Share Price ÷ EPS (both in INR)

= 1142.25 ÷ 126.68

9.02x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Vardhman Textiles is good value based on earnings compared to the IN Luxury industry average.
  • Vardhman Textiles is good value based on earnings compared to the India market.
Price based on expected Growth
Does Vardhman Textiles's expected growth come at a high price?
Raw Data
BSE:502986 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 9.02x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
8.1%per year
India Luxury Industry PEG Ratio Median Figure of 25 Publicly-Listed Luxury Companies 1.57x
India Market PEG Ratio Median Figure of 584 Publicly-Listed Companies 1.33x

*Line of best fit is calculated by linear regression .

BSE:502986 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 9.02x ÷ 8.1%

1.12x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Vardhman Textiles is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Vardhman Textiles's assets?
Raw Data
BSE:502986 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in INR ₹922.24
BSE:502986 Share Price * BSE (2019-04-18) in INR ₹1142.25
India Luxury Industry PB Ratio Median Figure of 311 Publicly-Listed Luxury Companies 0.75x
India Market PB Ratio Median Figure of 3,626 Publicly-Listed Companies 1.12x
BSE:502986 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:502986 Share Price ÷ Book Value per Share (both in INR)

= 1142.25 ÷ 922.24

1.24x

* Primary Listing of Vardhman Textiles.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Vardhman Textiles is overvalued based on assets compared to the IN Luxury industry average.
X
Value checks
We assess Vardhman Textiles's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Luxury industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Luxury industry average (and greater than 0)? (1 check)
  5. Vardhman Textiles has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Vardhman Textiles expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
8.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Vardhman Textiles expected to grow at an attractive rate?
  • Vardhman Textiles's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
  • Vardhman Textiles's earnings growth is positive but not above the India market average.
  • Vardhman Textiles's revenue growth is positive but not above the India market average.
Annual Growth Rates Comparison
Raw Data
BSE:502986 Future Growth Rates Data Sources
Data Point Source Value (per year)
BSE:502986 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 8.1%
BSE:502986 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 7.5%
India Luxury Industry Earnings Growth Rate Market Cap Weighted Average 19.2%
India Luxury Industry Revenue Growth Rate Market Cap Weighted Average 15%
India Market Earnings Growth Rate Market Cap Weighted Average 18.7%
India Market Revenue Growth Rate Market Cap Weighted Average 11.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
BSE:502986 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
BSE:502986 Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-03-31 78,389 7,360 8,429 3
2020-03-31 73,216 7,743 7,668 3
2019-03-31 67,690 8,402 7,138 3
BSE:502986 Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2018-12-31 66,183 7,150
2018-09-30 65,368 6,548
2018-06-30 63,806 5,915
2018-03-31 62,424 1,023 5,812
2017-12-31 63,395 5,760
2017-09-30 61,585 6,311
2017-06-30 61,546 9,520
2017-03-31 59,975 13,503 9,814
2016-12-31 66,588 7,116
2016-09-30 67,003 6,788
2016-06-30 66,511 6,133
2016-03-31 58,596 9,151 6,146

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Vardhman Textiles's earnings are expected to grow by 8.1% yearly, however this is not considered high growth (20% yearly).
  • Vardhman Textiles's revenue is expected to grow by 7.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
BSE:502986 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Vardhman Textiles Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BSE:502986 Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-03-31 148.37 155.90 139.00 3.00
2020-03-31 134.63 138.70 129.50 4.00
2019-03-31 125.40 126.90 124.00 4.00
BSE:502986 Past Financials Data
Date (Data in INR Millions) EPS *
2018-12-31 126.68
2018-09-30 116.90
2018-06-30 104.82
2018-03-31 104.54
2017-12-31 102.92
2017-09-30 109.73
2017-06-30 162.27
2017-03-31 163.10
2016-12-31 113.83
2016-09-30 108.58
2016-06-30 98.10
2016-03-31 100.90

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Vardhman Textiles is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Vardhman Textiles's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Vardhman Textiles has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Vardhman Textiles performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Vardhman Textiles's growth in the last year to its industry (Luxury).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Vardhman Textiles's year on year earnings growth rate has been positive over the past 5 years.
  • Vardhman Textiles's 1-year earnings growth exceeds its 5-year average (24.1% vs 7%)
  • Vardhman Textiles's earnings growth has exceeded the IN Luxury industry average in the past year (24.1% vs 14.8%).
Earnings and Revenue History
Vardhman Textiles's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Vardhman Textiles Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BSE:502986 Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 66,182.90 7,149.90 5,326.90
2018-09-30 65,368.30 6,547.50 5,208.30
2018-06-30 63,806.40 5,914.80 5,178.10
2018-03-31 62,424.20 5,811.90 5,088.40
2017-12-31 63,394.80 5,760.34 5,152.15
2017-09-30 61,585.30 6,311.14 5,118.35
2017-06-30 61,545.80 9,519.70 4,883.10
2017-03-31 59,974.50 9,814.10 4,847.30
2016-12-31 66,588.10 7,116.42 5,378.62
2016-09-30 67,003.30 6,788.22 5,448.62
2016-06-30 66,510.90 6,133.12 5,345.62
2016-03-31 58,596.13 6,145.93 4,366.07
2015-12-31 66,462.20 5,284.59 7,500.17
2015-09-30 66,332.60 4,659.49 7,246.37
2015-06-30 67,479.90 4,397.39 7,107.97
2015-03-31 67,859.60 4,002.09 4,531.64
2014-12-31 67,090.32 4,288.46 6,269.90
2014-03-31 61,664.32 7,183.46 6,267.50
2013-03-31 49,720.74 3,563.83 5,407.68

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Vardhman Textiles has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Vardhman Textiles used its assets more efficiently than the IN Luxury industry average last year based on Return on Assets.
  • Vardhman Textiles has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Vardhman Textiles's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Luxury industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Vardhman Textiles has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Vardhman Textiles's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Vardhman Textiles's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Vardhman Textiles is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Vardhman Textiles's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Vardhman Textiles's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 3.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Vardhman Textiles Company Filings, last reported 3 months ago.

BSE:502986 Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 53,212.70 13,402.90 12,923.50
2018-09-30 53,212.70 13,402.90 12,923.50
2018-06-30 50,624.80 20,309.60 10,712.00
2018-03-31 50,624.80 23,214.80 10,498.00
2017-12-31 46,506.20 18,347.50 13,733.80
2017-09-30 46,506.20 18,347.50 13,733.80
2017-06-30 43,854.80 18,090.20 10,134.90
2017-03-31 43,854.20 22,383.60 9,770.20
2016-12-31 46,904.90 19,590.50 22,203.20
2016-09-30 46,904.90 19,590.50 22,203.20
2016-06-30 42,180.62 27,781.88 5,464.06
2016-03-31 41,029.36 26,302.68 4,357.64
2015-12-31 40,732.60 16,436.70 14,702.10
2015-09-30 40,732.60 16,436.70 14,702.10
2015-06-30 38,163.04 26,401.55 6,145.81
2015-03-31 38,163.04 26,401.55 6,145.81
2014-12-31
2014-03-31 35,283.64 33,727.41 4,928.74
2013-03-31 28,619.65 31,736.84 5,361.23
  • Vardhman Textiles's level of debt (25.2%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (98.8% vs 25.2% today).
  • Debt is not well covered by operating cash flow (7.6%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 10.9x coverage).
X
Financial health checks
We assess Vardhman Textiles's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Vardhman Textiles has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Vardhman Textiles's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.31%
Current annual income from Vardhman Textiles dividends. Estimated to be 1.75% next year.
If you bought ₹2,000 of Vardhman Textiles shares you are expected to receive ₹26 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Vardhman Textiles's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.49%).
  • Vardhman Textiles's dividend is below the markets top 25% of dividend payers in India (1.92%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
BSE:502986 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
India Luxury Industry Average Dividend Yield Market Cap Weighted Average of 110 Stocks 0.6%
India Market Average Dividend Yield Market Cap Weighted Average of 1399 Stocks 1.3%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.5%
India Top 25% Dividend Yield 75th Percentile 1.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

BSE:502986 Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2021-03-31 19.50 2.00
2020-03-31 20.37 3.00
2019-03-31 16.00 2.00
BSE:502986 Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2018-09-27 15.000 1.426
2017-05-10 15.000 1.211
2016-05-09 15.000 1.377
2016-03-11 15.000 1.819
2015-07-22 10.000 1.246
2014-08-07 6.000 1.184
2014-05-23 6.000 1.309
2013-09-10 6.000 1.708
2012-09-06 4.500 1.718
2011-09-27 4.500 2.211
2010-05-07 3.000 1.145
2009-05-07 2.000 1.227
2009-04-20 2.000 2.950

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Vardhman Textiles's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (8.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (7.4x coverage).
X
Income/ dividend checks
We assess Vardhman Textiles's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Vardhman Textiles afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Vardhman Textiles has a total score of 5/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Vardhman Textiles's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Shri Oswal
COMPENSATION ₹151,864,000
AGE 76
TENURE AS CEO 13.8 years
CEO Bio

Mr. Shri Paul Oswal, M.Com. has been the Executive Chairman of Vardhman Textiles Limited since June 1, 2005 and its Managing Director since June 17, 2005. Mr. Oswal has been the Managing Director of Vardhman Holdings Ltd. since August 9, 2016. He served as Chief Executive Officer and Managing Director of Vardhman Holdings Ltd. Mr. Oswal served as the Managing Director and Chairman of the Board at Vardhman Special Steels Limited. He has a Rich Business experience of about 38 years in the Textile Industry. He co-founded Ludhiana Stock Exchange Limited in 1981 and served as its President and Chairman from August 16, 1983 to July 27, 1986. He served as the Managing Director of Vardhman Holdings Ltd., (formerly, Vardhman Spinning & General Mills) until June 1, 2005. Mr. Oswal serves as the Chairman of Vardhman Holdings Ltd. He serves as the Chairman of Nimbua Greenfield (Punjab) Limited, Vardhman Yarns & Threads Limited and Vardhman Threads Ltd. He serves as the Non-Executive Chairman at Vardhman Acrylics Ltd. and has been its Non Independent Director since December 24, 1990. Mr. Oswal has been a Director of Vardhman Holdings Ltd., since April 12, 1971 and UTI Trustee Company Pvt. Ltd., of UTI Mutual Fund - Children Career Plan since January 13, 2006. He has been a Director of Vardhman Textiles since October 08, 1973. He serves as a Director of VMT Spinning Company Limited, Adinath Investment & Trading Company, Devakar Investment & Trading Company (P) Limited, Anklesh Investments (P) Limited, Srestha Holdings Limited, Vardhman Linen Limited, Vardhman Textile Processors (P) Limited, Santon Finance and Investment Company Limited, Flamingo Finance and Investment Company Limited, Ramaniya Finance and Investment Company Limited, Marshall Investment and Trading Company (P) Limited, Pradeep Mercantile Company Pvt. Ltd., Plaza Trading Company (P) Limited, The Ludhiana Industries Power Company Limited, Syracuse Investment & Trading Company (P) Limited, Vardhman Yarns & Threads Limited and Nimbua Greenfield (Punjab) Limited. He serves as a Director of Syracase Investment & Trading Co. P. Ltd. He serves as a Trustee of Banarso Devi Oswal Public Charitable Trust, Sri Aurobindo Socio Economic & Mgt. Research Institute, VSGM Ltd., Employees Gratuity Fund Trust, Mahavir Employees Gratuity Fund Trust, Vardhman Superannuation Scheme and Mahavir Superannuation Scheme. He served as Director of Export-Import Bank of India.

CEO Compensation
  • Shri's compensation has been consistent with company performance over the past year.
  • Shri's remuneration is higher than average for companies of similar size in India.
Management Team Tenure

Average tenure and age of the Vardhman Textiles management team in years:

3.5
Average Tenure
57
Average Age
  • The tenure for the Vardhman Textiles management team is about average.
Management Team

Shri Oswal

TITLE
Executive Chairman & MD
COMPENSATION
₹152M
AGE
76
TENURE
13.8 yrs

Suchita Jain

TITLE
Vice Chairperson & Joint MD
COMPENSATION
₹17M
AGE
50
TENURE
2.4 yrs

Neeraj Jain

TITLE
Joint MD
COMPENSATION
₹17M
AGE
51
TENURE
4.7 yrs

I. M. J. Sidhu

TITLE
President & Director In-charge
AGE
70

Rajeev Thapar

TITLE
Chief Financial Officer
AGE
52

Sanjay Gupta

TITLE
Compliance Officer & Company Secretary
TENURE
1.8 yrs

D. Sindwani

TITLE
Director of Corporate Services
AGE
57

I. Dhuria

TITLE
Director of Materials
AGE
64

S. Pal

TITLE
Director of MP Location
AGE
74

S. Rai

TITLE
Vice President
AGE
41
Board of Directors Tenure

Average tenure and age of the Vardhman Textiles board of directors in years:

12
Average Tenure
72.5
Average Age
  • The average tenure for the Vardhman Textiles board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Shri Oswal

TITLE
Executive Chairman & MD
COMPENSATION
₹152M
AGE
76
TENURE
13.8 yrs

Suchita Jain

TITLE
Vice Chairperson & Joint MD
COMPENSATION
₹17M
AGE
50
TENURE
0.2 yrs

Neeraj Jain

TITLE
Joint MD
COMPENSATION
₹17M
AGE
51
TENURE
9 yrs

Prafull Shah

TITLE
Non-Executive Independent Director
COMPENSATION
₹380K
AGE
80
TENURE
38.8 yrs

Ashok Kundra

TITLE
Non-Executive Independent Director
COMPENSATION
₹500K
AGE
75
TENURE
10.3 yrs

Darshan Sharma

TITLE
Non-Executive Non-Independent Director
AGE
70
TENURE
33.7 yrs

Sachit Jain

TITLE
Director
COMPENSATION
₹14M
AGE
52
TENURE
24.8 yrs

Subash Bijlani

TITLE
Non-Executive Independent Director
COMPENSATION
₹255K
AGE
76
TENURE
14.1 yrs

Devendra Jain

TITLE
Independent Additional Director
COMPENSATION
₹260K
AGE
76
TENURE
4.7 yrs

Rajender Malla

TITLE
Independent Director
COMPENSATION
₹170K
AGE
65
TENURE
3.6 yrs
Who owns this company?
Recent Insider Trading
  • Vardhman Textiles insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
06. Apr 19 Buy Devakar Investment and Trading Company Private Limited Company 04. Apr 19 04. Apr 19 10,294 ₹1,078.88 ₹11,105,984
29. Mar 19 Sell Darshan Sharma Individual 26. Mar 19 26. Mar 19 -300 ₹1,078.88 ₹-323,664
28. Mar 19 Buy Devakar Investment and Trading Company Private Limited Company 27. Mar 19 27. Mar 19 1,468 ₹1,078.33 ₹1,582,988
27. Mar 19 Buy Devakar Investment and Trading Company Private Limited Company 26. Mar 19 26. Mar 19 4,891 ₹1,078.13 ₹5,273,134
20. Mar 19 Buy Devakar Investment and Trading Company Private Limited Company 18. Mar 19 19. Mar 19 2,415 ₹1,085.89 ₹2,618,777
11. Mar 19 Buy Devakar Investment and Trading Company Private Limited Company 08. Mar 19 08. Mar 19 7,602 ₹1,059.47 ₹8,054,091
02. Mar 19 Buy Devakar Investment and Trading Company Private Limited Company 28. Feb 19 28. Feb 19 205 ₹998.69 ₹204,732
01. Mar 19 Buy Devakar Investment and Trading Company Private Limited Company 27. Feb 19 27. Feb 19 5,963 ₹974.42 ₹5,810,479
06. Jul 18 Sell Neeraj Jain Individual 02. Jul 18 04. Jul 18 -1,012 ₹1,219.32 ₹-1,227,626
X
Management checks
We assess Vardhman Textiles's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Vardhman Textiles has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

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Simply Wall St -

Top Rated BSE Stocks To Position Your Portfolio For A Bear Market

because it’s a mid-cap stock priced at ₹75.39B and a PE of 12.75x, there is room for enough active participants in the market for the stock and there could still be space for value in the price, helping curtail the rate of decline in share price during periods of mass selling. … With SJVN’s market value of ₹144.16B and a PE ratio of 9.34x, there are active participants in the market for the stock and there could still be room for value in the price, which reduces risk of firm price declines and allows you to sell without a large loss due to unattractive spreads. … With Hero MotoCorp’s market value of ₹716.36B and a PE of 19.98x, greater liquidity is offered at a good price relative to the market, which reduces risk of firm price declines and allows you to sell without a large loss due to unattractive spreads.

Simply Wall St -

Company Info

Description

Vardhman Textiles Limited, together with its subsidiaries, manufacturing, purchases, and sells textiles in India. It operates in two segments, Textiles and Fibre. The company manufactures yarns, fabrics, fibers, threads, and garments. It offers specialized greige and dyed yarns in cotton, polyester, acrylic, and various blends; and value added products, such as organic cotton, melange, core spun yarns, ultra yarns, gassed mercerized, super fine yarns, slub and cellulose yarns, and fancy yarns for hand knitting. The company also exports its products. In addition, it engages in lending and investing activities; and manufacturing steel products. The company was formerly known as Mahavir Spinning Mills Limited and changed its name to Vardhman Textiles Limited in September 2006. Vardhman Textiles Limited was founded in 1965 and is based in Ludhiana, India.

Details
Name: Vardhman Textiles Limited
502986
Exchange: BSE
Founded: 1965
₹64,171,602,832
56,489,087
Website: http://www.vardhman.com
Address: Vardhman Textiles Limited
Chandigarh Road,
Ludhiana,
Punjab, 141010,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BSE 502986 Equity Shares Mumbai Stock Exchange IN INR 13. Jul 2001
NSEI VTL Equity Shares National Stock Exchange of India IN INR 13. Jul 2001
Number of employees
Current staff
Staff numbers
20,919
Vardhman Textiles employees.
Industry
Textiles
Consumer Durables
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/18 12:37
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/10
Last earnings filing: 2019/02/06
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.