company background image
5029

Vardhman TextilesBSE:502986 Stock Report

Market Cap

₹110.7b

7D

-8.8%

1Y

159.2%

Updated

19 Oct, 2021

Data

Company Financials +
502986 fundamental analysis
Snowflake Score
Valuation5/6
Future Growth3/6
Past Performance4/6
Financial Health5/6
Dividends3/6

502986 Overview

Vardhman Textiles Limited, together with its subsidiaries, manufactures and sells textiles and fibre in India, rest of Asia, the United States, Europe, and the Middle East.

Vardhman Textiles Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Vardhman Textiles
Historical stock prices
Current Share Price₹1,918.75
52 Week High₹731.35
52 Week Low₹2,145.00
Beta0.65
1 Month Change0.48%
3 Month Change16.66%
1 Year Change159.22%
3 Year Change89.82%
5 Year Change75.66%
Change since IPO6,919.82%

Recent News & Updates

Shareholder Returns

502986IN LuxuryIN Market
7D-8.8%5.1%2.8%
1Y159.2%111.3%68.3%

Return vs Industry: 502986 exceeded the Indian Luxury industry which returned 111.3% over the past year.

Return vs Market: 502986 exceeded the Indian Market which returned 68.3% over the past year.

Price Volatility

Is 502986's price volatile compared to industry and market?
502986 volatility
502986 Beta0.65
Industry Beta0.72
Market Beta1

Stable Share Price: 502986 is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: 502986's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
196520,916Shri Oswalhttps://www.vardhman.com

Vardhman Textiles Limited, together with its subsidiaries, manufactures and sells textiles and fibre in India, rest of Asia, the United States, Europe, and the Middle East. It offers yarns, fabrics, fibers, threads, and garments. The company also provides 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.

Vardhman Textiles Fundamentals Summary

How do Vardhman Textiles's earnings and revenue compare to its market cap?
502986 fundamental statistics
Market Cap₹110.69b
Earnings (TTM)₹7.89b
Revenue (TTM)₹72.49b

14.0x

P/E Ratio

1.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
502986 income statement (TTM)
Revenue₹72.49b
Cost of Revenue₹43.49b
Gross Profit₹29.00b
Expenses₹21.11b
Earnings₹7.89b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)136.75
Gross Margin40.01%
Net Profit Margin10.88%
Debt/Equity Ratio28.0%

How did 502986 perform over the long term?

See historical performance and comparison

Dividends

0.9%

Current Dividend Yield

13%

Payout Ratio

Valuation

Is Vardhman Textiles undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 502986 (₹1918.75) is trading below our estimate of fair value (₹5475.99)

Significantly Below Fair Value: 502986 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 502986 is good value based on its PE Ratio (14x) compared to the Indian Luxury industry average (16.4x).

PE vs Market: 502986 is good value based on its PE Ratio (14x) compared to the Indian market (22.2x).


Price to Earnings Growth Ratio

PEG Ratio: 502986 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: 502986 is overvalued based on its PB Ratio (1.7x) compared to the IN Luxury industry average (1.2x).


Future Growth

How is Vardhman Textiles forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

22.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 502986's forecast earnings growth (22.9% per year) is above the savings rate (6.7%).

Earnings vs Market: 502986's earnings (22.9% per year) are forecast to grow faster than the Indian market (19.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 502986's revenue (12.7% per year) is forecast to grow slower than the Indian market (12.8% per year).

High Growth Revenue: 502986's revenue (12.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 502986's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Vardhman Textiles performed over the past 5 years?

-9.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 502986 has high quality earnings.

Growing Profit Margin: 502986's current net profit margins (10.9%) are higher than last year (6.7%).


Past Earnings Growth Analysis

Earnings Trend: 502986's earnings have declined by 9.5% per year over the past 5 years.

Accelerating Growth: 502986's earnings growth over the past year (98.6%) exceeds its 5-year average (-9.5% per year).

Earnings vs Industry: 502986 earnings growth over the past year (98.6%) exceeded the Luxury industry 73.8%.


Return on Equity

High ROE: 502986's Return on Equity (12.2%) is considered low.


Financial Health

How is Vardhman Textiles's financial position?


Financial Position Analysis

Short Term Liabilities: 502986's short term assets (₹52.0B) exceed its short term liabilities (₹14.3B).

Long Term Liabilities: 502986's short term assets (₹52.0B) exceed its long term liabilities (₹15.9B).


Debt to Equity History and Analysis

Debt Level: 502986's debt to equity ratio (28%) is considered satisfactory.

Reducing Debt: 502986's debt to equity ratio has reduced from 65.6% to 28% over the past 5 years.

Debt Coverage: 502986's debt is not well covered by operating cash flow (9.1%).

Interest Coverage: 502986's interest payments on its debt are well covered by EBIT (8.8x coverage).


Balance Sheet


Dividend

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

0.91%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 502986's dividend (0.91%) is higher than the bottom 25% of dividend payers in the Indian market (0.33%).

High Dividend: 502986's dividend (0.91%) is low compared to the top 25% of dividend payers in the Indian market (1.36%).


Stability and Growth of Payments

Stable Dividend: 502986's dividend payments have been volatile 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 (12.5%), 502986's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.0yrs

Average management tenure


CEO

Shri Oswal (79 yo)

16.33yrs

Tenure

₹92,386,145

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 ($USD1.23M) is above average for companies of similar size in the Indian market ($USD409.39K).

Compensation vs Earnings: Shri's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: 502986's management team is seasoned and experienced (6 years average tenure).


Board Members

Experienced Board: 502986's board of directors are seasoned and experienced ( 12.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 502986 insiders have sold more shares than they have bought 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 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: ₹110.690b
  • Shares outstanding: 57.69m
  • Website: https://www.vardhman.com

Number of Employees


Location

  • Vardhman Textiles Limited
  • Vardhman Premises
  • Chandigarh Road
  • Ludhiana
  • Punjab
  • 141010
  • India

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/19 15:33
End of Day Share Price2021/10/19 00:00
Earnings2021/06/30
Annual Earnings2021/03/31


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.