Vardhman Textiles
Market Cap
₹59.3b
Last Updated
2020/02/19 12:40 UTC
Data Sources
Company Financials +
Executive Summary
Vardhman Textiles Limited, together with its subsidiaries, manufactures and sells textiles in India.
Rewards
Risk Analysis
No risks detected for 502986 from our risk checks.
Snowflake Analysis
Flawless balance sheet established dividend payer.
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Share Price & News
How has Vardhman Textiles's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 502986 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
4.3%
502986
-0.5%
IN Luxury
-1.5%
IN Market
1 Year Return
9.6%
502986
18.2%
IN Luxury
10.7%
IN Market
Return vs Industry: 502986 underperformed the Indian Luxury industry which returned 18.2% over the past year.
Return vs Market: 502986 underperformed the Indian Market which returned 10.7% over the past year.
Shareholder returns
| 502986 | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.3% | -0.5% | -1.5% |
| 30 Day | 1.9% | 3.0% | -2.7% |
| 90 Day | 20.0% | 9.2% | 1.3% |
| 1 Year | 11.6%9.6% | 19.0%18.2% | 12.7%10.7% |
| 3 Year | -17.1%-20.8% | 52.2%48.8% | 22.0%15.1% |
| 5 Year | 128.8%111.7% | 106.9%100.1% | 34.5%22.0% |
Price Volatility Vs. Market
How volatile is Vardhman Textiles's share price compared to the market and industry in the last 5 years?
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Is Vardhman Textiles undervalued compared to its fair value and its price relative to the market?
18.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 502986 (₹1057.95) is trading below our estimate of fair value (₹1294.83)
Significantly Below Fair Value: 502986 is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: 502986 is good value based on its PE Ratio (9.8x) compared to the Luxury industry average (11.2x).
PE vs Market: 502986 is good value based on its PE Ratio (9.8x) compared to the Indian market (13.1x).
Price to Earnings Growth Ratio
PEG Ratio: 502986 is good value based on its PEG Ratio (0.8x)
Price to Book Ratio
PB vs Industry: 502986 is overvalued based on its PB Ratio (1x) compared to the IN Luxury industry average (0.5x).
Next Steps
Future Growth
How is Vardhman Textiles forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
11.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 502986's forecast earnings growth (11.6% per year) is above the savings rate (6.5%).
Earnings vs Market: 502986's earnings (11.6% per year) are forecast to grow slower than the Indian market (20.6% per year).
High Growth Earnings: 502986's earnings are forecast to grow, but not significantly.
Revenue vs Market: 502986's revenue (4.2% per year) is forecast to grow slower than the Indian market (9% per year).
High Growth Revenue: 502986's revenue (4.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 502986's Return on Equity is forecast to be low in 3 years time (10.6%).
Next Steps
Past Performance
How has Vardhman Textiles performed over the past 5 years?
6.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 502986 has high quality earnings.
Growing Profit Margin: 502986's current net profit margins (8.9%) are lower than last year (10.8%).
Past Earnings Growth Analysis
Earnings Trend: 502986's earnings have grown by 6.5% per year over the past 5 years.
Accelerating Growth: 502986's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 502986 had negative earnings growth (-14.5%) over the past year, making it difficult to compare to the Luxury industry average (5.6%).
Return on Equity
High ROE: 502986's Return on Equity (10.7%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Vardhman Textiles's financial position?
Financial Position Analysis
Short Term Liabilities: 502986's short term assets (₹44.2B) exceed its short term liabilities (₹14.5B).
Long Term Liabilities: 502986's short term assets (₹44.2B) exceed its long term liabilities (₹15.2B).
Debt to Equity History and Analysis
Debt Level: 502986's debt to equity ratio (25.4%) is considered satisfactory.
Reducing Debt: 502986's debt to equity ratio has reduced from 75.2% to 25.4% over the past 5 years.
Debt Coverage: 502986's debt is well covered by operating cash flow (50.1%).
Interest Coverage: 502986's interest payments on its debt are well covered by EBIT (7.5x coverage).
Balance Sheet
Inventory Level: 502986 has a high level of physical assets or inventory.
Debt Coverage by Assets: 502986's debt is covered by short term assets (assets are 3x debt).
Next Steps
Dividend
What is Vardhman Textiles's current dividend yield, its reliability and sustainability?
1.65%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: 502986's dividend (1.65%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).
High Dividend: 502986's dividend (1.65%) is low compared to the top 25% of dividend payers in the Indian market (2.58%).
Stability and Growth of Payments
Stable Dividend: 502986's dividends per share have been stable in the past 10 years.
Growing Dividend: 502986's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (16.2%), 502986's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 502986's dividends in 3 years are forecast to be well covered by earnings (18.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.4yrs
Average management tenure
CEO
Shri Oswal (77yo)
14.7yrs
Tenure
₹188,324,000
Compensation
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 Vardhm ...
CEO Compensation Analysis
Compensation vs Market: Shri's total compensation ($USD2.63M) is above average for companies of similar size in the Indian market ($USD387.20K).
Compensation vs Earnings: Shri's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman & MD | 14.7yrs | ₹188.32m | 1.1% ₹653.3m | |
| Vice Chairperson & Joint MD | 1yrs | ₹18.53m | 0.42% ₹252.1m | |
| Joint MD | 9.9yrs | ₹17.86m | 0.0076% ₹4.5m | |
| President & Director In-charge | 0yrs | no data | 0.0074% ₹4.4m | |
| Chief Financial Officer | 0yrs | no data | 0.00071% ₹421.3k | |
| Director of Operations | 0yrs | no data | 0.010% ₹6.2m | |
| Compliance Officer & Company Secretary | 2.7yrs | no data | no data | |
| Director of Corporate Services | 0yrs | no data | no data | |
| Senior Vice President of Fabric Marketing | 0yrs | no data | 0.0035% ₹2.1m | |
| Chief General Manager of Operations | 0yrs | no data | 0.0021% ₹1.2m |
4.4yrs
Average Tenure
58.5yo
Average Age
Experienced Management: 502986's management team is considered experienced (4.4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman & MD | 14.7yrs | ₹188.32m | 1.1% ₹653.3m | |
| Vice Chairperson & Joint MD | 1yrs | ₹18.53m | 0.42% ₹252.1m | |
| Joint MD | 9.9yrs | ₹17.86m | 0.0076% ₹4.5m | |
| Independent Director | 4.5yrs | ₹275.00k | no data | |
| Non-Executive Non-Independent Director | 34.5yrs | no data | 0.011% ₹6.4m | |
| Non-Executive Director | 25.7yrs | ₹5.86m | no data | |
| Non-Executive Independent Director | 39.6yrs | ₹515.00k | no data | |
| Non-Executive Independent Director | 14.9yrs | ₹235.00k | no data | |
| Non-Executive Independent Director | 11.1yrs | ₹665.00k | no data | |
| Independent Additional Director | 5.5yrs | ₹395.00k | no data |
12.9yrs
Average Tenure
73.5yo
Average Age
Experienced Board: 502986's board of directors are seasoned and experienced ( 12.9 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Vardhman Textiles Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Vardhman Textiles Limited
- Ticker: 502986
- Exchange: BSE
- Founded: 1965
- Industry: Textiles
- Sector: Consumer Durables
- Market Cap: ₹59.336b
- Shares outstanding: 57.52m
- Website: https://www.vardhman.com
Number of Employees
Location
- Vardhman Textiles Limited
- Chandigarh Road
- Ludhiana
- Punjab
- 141010
- India
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 502986 | BSE (Mumbai Stock Exchange) | Yes | Equity Shares | IN | INR | Jul 2001 |
| VTL | NSEI (National Stock Exchange of India) | Yes | Equity Shares | IN | INR | Jul 2001 |
Biography
Vardhman Textiles Limited, together with its subsidiaries, manufactures 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 headquartered in Ludhiana, India.Â
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/19 12:40 |
| End of Day Share Price | 2020/02/19 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/03/31 |
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.