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VARD

Vardhman Acrylics NSEI:VARDHACRLC Stock Report

Last Price

₹49.70

Market Cap

₹4.0b

7D

4.0%

1Y

6.2%

Updated

26 Jun, 2022

Data

Company Financials
VARDHACRLC fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance0/6
Financial Health4/6
Dividends2/6

VARDHACRLC Stock Overview

Vardhman Acrylics Limited manufactures and supplies acrylic fibers and tows in India.

Vardhman Acrylics Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Vardhman Acrylics
Historical stock prices
Current Share Price₹49.70
52 Week High₹84.20
52 Week Low₹43.35
Beta0.046
1 Month Change-4.70%
3 Month Change0.20%
1 Year Change6.20%
3 Year Change20.19%
5 Year Change3.54%
Change since IPO347.75%

Recent News & Updates

Apr 02
The Returns At Vardhman Acrylics (NSE:VARDHACRLC) Aren't Growing

The Returns At Vardhman Acrylics (NSE:VARDHACRLC) Aren't Growing

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Amongst other things, we'll want to...

Shareholder Returns

VARDHACRLCIN LuxuryIN Market
7D4.0%2.7%2.3%
1Y6.2%14.2%-0.9%

Return vs Industry: VARDHACRLC underperformed the Indian Luxury industry which returned 14.2% over the past year.

Return vs Market: VARDHACRLC exceeded the Indian Market which returned -0.9% over the past year.

Price Volatility

Is VARDHACRLC's price volatile compared to industry and market?
VARDHACRLC volatility
VARDHACRLC Average Weekly Movement8.9%
Luxury Industry Average Movement7.8%
Market Average Movement6.9%
10% most volatile stocks in IN Market9.9%
10% least volatile stocks in IN Market4.5%

Stable Share Price: VARDHACRLC is more volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: VARDHACRLC's weekly volatility (9%) has been stable over the past year, but is still higher than 75% of Indian stocks.

About the Company

FoundedEmployeesCEOWebsite
1990n/aBal Choudharyhttps://www.vardhmanacrylics.com

Vardhman Acrylics Limited manufactures and supplies acrylic fibers and tows in India. Its products are used in apparels and house-hold products. The company provides its products under the VARLAN brand name.

Vardhman Acrylics Fundamentals Summary

How do Vardhman Acrylics's earnings and revenue compare to its market cap?
VARDHACRLC fundamental statistics
Market Cap₹3.99b
Earnings (TTM)₹145.60m
Revenue (TTM)₹3.03b

27.4x

P/E Ratio

1.3x

P/S Ratio

Is VARDHACRLC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
VARDHACRLC income statement (TTM)
Revenue₹3.03b
Cost of Revenue₹2.31b
Gross Profit₹722.30m
Other Expenses₹576.70m
Earnings₹145.60m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.81
Gross Margin23.81%
Net Profit Margin4.80%
Debt/Equity Ratio1.3%

How did VARDHACRLC perform over the long term?

See historical performance and comparison

Dividends

50.3%

Current Dividend Yield

n/a

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is VARDHACRLC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for VARDHACRLC?

Other financial metrics that can be useful for relative valuation.

VARDHACRLC key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.1x
Enterprise Value/EBITDA36.2x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does VARDHACRLC's PE Ratio compare to its peers?

VARDHACRLC PE Ratio vs Peers
The above table shows the PE ratio for VARDHACRLC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average10.5x

Price-To-Earnings vs Peers: VARDHACRLC is expensive based on its Price-To-Earnings Ratio (27.4x) compared to the peer average (10.5x).


Price to Earnings Ratio vs Industry

How does VARDHACRLC's PE Ratio compare vs other companies in the Indian Luxury Industry?

Price-To-Earnings vs Industry: VARDHACRLC is expensive based on its Price-To-Earnings Ratio (27.4x) compared to the Indian Luxury industry average (12.2x)


Price to Earnings Ratio vs Fair Ratio

What is VARDHACRLC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

VARDHACRLC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio27.4x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate VARDHACRLC's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of VARDHACRLC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: VARDHACRLC (₹49.7) is trading below our estimate of fair value (₹305.85)

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


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate VARDHACRLC's PEG Ratio to determine if it is good value.


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Future Growth

How is Vardhman Acrylics forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


27.1%

Forecasted Consumer Durables industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Vardhman Acrylics has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Discover growth companies

  • Examine Vardhman Acrylics's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
  • Vardhman Acrylics competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Vardhman Acrylics performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-0.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: VARDHACRLC has a high level of non-cash earnings.

Growing Profit Margin: VARDHACRLC's current net profit margins (4.8%) are lower than last year (15.3%).


Past Earnings Growth Analysis

Earnings Trend: VARDHACRLC's earnings have declined by 0.4% per year over the past 5 years.

Accelerating Growth: VARDHACRLC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: VARDHACRLC had negative earnings growth (-66.1%) over the past year, making it difficult to compare to the Luxury industry average (83.8%).


Return on Equity

High ROE: VARDHACRLC's Return on Equity (6.9%) is considered low.


Discover strong past performing companies

Financial Health

How is Vardhman Acrylics's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: VARDHACRLC's short term assets (₹1.9B) exceed its short term liabilities (₹819.0M).

Long Term Liabilities: VARDHACRLC's short term assets (₹1.9B) exceed its long term liabilities (₹81.5M).


Debt to Equity History and Analysis

Debt Level: VARDHACRLC has more cash than its total debt.

Reducing Debt: VARDHACRLC's debt to equity ratio has increased from 0.3% to 1.3% over the past 5 years.

Debt Coverage: VARDHACRLC's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: VARDHACRLC's interest payments on its debt are well covered by EBIT (8.7x coverage).


Balance Sheet


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Dividend

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

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


50.30%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: VARDHACRLC's dividend (50.3%) is higher than the bottom 25% of dividend payers in the Indian market (0.43%).

High Dividend: VARDHACRLC's dividend (50.3%) is in the top 25% of dividend payers in the Indian market (1.89%)


Stability and Growth of Payments

Stable Dividend: VARDHACRLC has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: VARDHACRLC's dividend payments have increased, but the company has only paid a dividend for 7 years.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: VARDHACRLC is paying a dividend but the company has no free cash flows.


Discover strong dividend paying companies

Management

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

18.9yrs

Average board tenure


CEO

Bal Choudhary (70 yo)

14.08yrs

Tenure

₹12,883,000

Compensation

Mr. Bal Krishan Choudhary, B.Sc., M.Com., M.B.A., serves as Director of Operations at Vardhman Textiles Limited. Mr. Choudhary has been the Managing Director at Vardhman Acrylics Ltd. since May 12, 2008 an...


CEO Compensation Analysis

Compensation vs Market: Bal's total compensation ($USD164.60K) is above average for companies of similar size in the Indian market ($USD38.38K).

Compensation vs Earnings: Bal's compensation has been consistent with company performance over the past year.


Board Members

Experienced Board: VARDHACRLC's board of directors are seasoned and experienced ( 18.9 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Vardhman Acrylics Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Vardhman Acrylics Limited
  • Ticker: VARDHACRLC
  • Exchange: NSEI
  • Founded: 1990
  • Industry: Textiles
  • Sector: Consumer Durables
  • Implied Market Cap: ₹3.994b
  • Shares outstanding: 80.36m
  • Website: https://www.vardhmanacrylics.com

Number of Employees


Location

  • Vardhman Acrylics 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 Analysis2022/06/26 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.