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Vardhman Acrylics

NSEI:VARDHACRLC
Snowflake Description

Flawless balance sheet second-rate dividend payer.

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

Vardhman Acrylics Limited manufactures and supplies acrylic fiber and tow in India. The last earnings update was 81 days ago. More info.


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VARDHACRLC Share Price and Events
7 Day Returns
-0.7%
NSEI:VARDHACRLC
-0.6%
IN Luxury
-1.9%
IN Market
1 Year Returns
-16.9%
NSEI:VARDHACRLC
-4%
IN Luxury
-2.8%
IN Market
VARDHACRLC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Vardhman Acrylics (VARDHACRLC) -0.7% 2.3% -9.2% -16.9% 20.7% 164.5%
IN Luxury -0.6% 1.4% 8.8% -4% 47.5% 162.4%
IN Market -1.9% 1.2% 5.1% -2.8% 38.3% 71%
1 Year Return vs Industry and Market
  • VARDHACRLC underperformed the Luxury industry which returned -4% over the past year.
  • VARDHACRLC underperformed the Market in India which returned -2.8% over the past year.
Price Volatility
VARDHACRLC
Industry
5yr Volatility vs Market
Related Companies

VARDHACRLC Value

 Is Vardhman Acrylics 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 Acrylics 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 Acrylics.

NSEI:VARDHACRLC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 14.6%
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 NSEI:VARDHACRLC
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))
= 0.73 (1 + (1- 35%) (0.07%))
0.819
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.82
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (0.819 * 8.6%)
14.59%

Discounted Cash Flow Calculation for NSEI:VARDHACRLC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Vardhman Acrylics 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.

NSEI:VARDHACRLC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 14.59%)
2019 119.88 Est @ 12.75% 104.61
2020 133.29 Est @ 11.19% 101.50
2021 146.75 Est @ 10.1% 97.52
2022 160.44 Est @ 9.33% 93.04
2023 174.55 Est @ 8.8% 88.33
2024 189.26 Est @ 8.42% 83.57
2025 204.70 Est @ 8.16% 78.88
2026 221.03 Est @ 7.98% 74.33
2027 238.38 Est @ 7.85% 69.95
2028 256.88 Est @ 7.76% 65.78
Present value of next 10 years cash flows ₹857.51
NSEI:VARDHACRLC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= ₹256.88 × (1 + 7.55%) ÷ (14.59% – 7.55%)
₹3,921.84
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹3,921.84 ÷ (1 + 14.59%)10
₹1,004.27
NSEI:VARDHACRLC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹857.51 + ₹1,004.27
₹1,861.78
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹1,861.78 / 80.36
₹23.17
NSEI:VARDHACRLC Discount to Share Price
Calculation Result
Value per share (INR) From above. ₹23.17
Current discount Discount to share price of ₹41.40
= -1 x (₹41.40 - ₹23.17) / ₹23.17
-78.7%

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

  • The current share price of Vardhman Acrylics is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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 Acrylics's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Vardhman Acrylics's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:VARDHACRLC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in INR ₹3.95
NSEI:VARDHACRLC Share Price ** NSEI (2019-04-24) in INR ₹41.4
India Luxury Industry PE Ratio Median Figure of 240 Publicly-Listed Luxury Companies 12.23x
India Market PE Ratio Median Figure of 2,739 Publicly-Listed Companies 16.02x

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

** Primary Listing of Vardhman Acrylics.

NSEI:VARDHACRLC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NSEI:VARDHACRLC Share Price ÷ EPS (both in INR)

= 41.4 ÷ 3.95

10.48x

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

  • Vardhman Acrylics is good value based on earnings compared to the IN Luxury industry average.
  • Vardhman Acrylics is good value based on earnings compared to the India market.
Price based on expected Growth
Does Vardhman Acrylics's expected growth come at a high price?
Raw Data
NSEI:VARDHACRLC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.48x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
-0.3%per year
India Luxury Industry PEG Ratio Median Figure of 25 Publicly-Listed Luxury Companies 1.48x
India Market PEG Ratio Median Figure of 586 Publicly-Listed Companies 1.32x

*Line of best fit is calculated by linear regression .

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

  • Unable to calculate PEG ratio for Vardhman Acrylics, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Vardhman Acrylics's assets?
Raw Data
NSEI:VARDHACRLC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in INR ₹40.48
NSEI:VARDHACRLC Share Price * NSEI (2019-04-24) in INR ₹41.4
India Luxury Industry PB Ratio Median Figure of 311 Publicly-Listed Luxury Companies 0.75x
India Market PB Ratio Median Figure of 3,630 Publicly-Listed Companies 1.09x
NSEI:VARDHACRLC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NSEI:VARDHACRLC Share Price ÷ Book Value per Share (both in INR)

= 41.4 ÷ 40.48

1.02x

* Primary Listing of Vardhman Acrylics.

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

  • Vardhman Acrylics is overvalued based on assets compared to the IN Luxury industry average.
X
Value checks
We assess Vardhman Acrylics'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 Acrylics has a total score of 2/6, 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.

VARDHACRLC Future Performance

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

  • No analysts cover Vardhman Acrylics, future earnings growth has been estimated based on fundamentals.
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
-0.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Vardhman Acrylics expected to grow at an attractive rate?
  • Vardhman Acrylics's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 7.6%.
Growth vs Market Checks
  • Vardhman Acrylics's earnings are expected to decrease over the next 1-3 years, this is below the India market average.
  • Unable to compare Vardhman Acrylics's revenue growth to the India market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NSEI:VARDHACRLC Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:VARDHACRLC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts -0.3%
India Luxury Industry Earnings Growth Rate Market Cap Weighted Average 19.3%
India Luxury Industry Revenue Growth Rate Market Cap Weighted Average 15%
India Market Earnings Growth Rate Market Cap Weighted Average 18.3%
India Market Revenue Growth Rate Market Cap Weighted Average 11.7%

*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
NSEI:VARDHACRLC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:VARDHACRLC Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2018-12-31 3,943 318
2018-09-30 3,840 470
2018-06-30 3,587 411
2018-03-31 3,197 29 386
2017-12-31 3,188 361
2017-09-30 2,980 276
2017-06-30 3,309 355
2017-03-31 3,372 422 411
2016-12-31 3,409 354
2016-09-30 3,881 403
2016-06-30 4,109 373
2016-03-31 4,125 232 408

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Vardhman Acrylics's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Unable to determine if Vardhman Acrylics is high growth as no revenue estimate data is available.
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
NSEI:VARDHACRLC 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 0 Analyst Estimates (S&P Global) See Below

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

NSEI:VARDHACRLC Past Financials Data
Date (Data in INR Millions) EPS *
2018-12-31 3.95
2018-09-30 5.85
2018-06-30 5.12
2018-03-31 4.80
2017-12-31 4.36
2017-09-30 3.21
2017-06-30 3.98
2017-03-31 4.45
2016-12-31 3.81
2016-09-30 4.34
2016-06-30 4.01
2016-03-31 4.38

*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.
  • Unable to establish if Vardhman Acrylics will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Vardhman Acrylics'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 Acrylics has a total score of 0/6, 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.

VARDHACRLC Past Performance

  How has Vardhman Acrylics 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 Acrylics'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 Acrylics's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Vardhman Acrylics's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Vardhman Acrylics's 1-year earnings growth is negative, it can't be compared to the IN Luxury industry average.
Earnings and Revenue History
Vardhman Acrylics'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 Acrylics Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:VARDHACRLC 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 3,943.36 317.83 148.47
2018-09-30 3,840.16 470.23 148.17
2018-06-30 3,587.26 411.43 147.47
2018-03-31 3,196.56 385.73 145.87
2017-12-31 3,188.22 361.25 147.57
2017-09-30 2,980.02 276.15 143.57
2017-06-30 3,308.80 355.00 138.20
2017-03-31 3,371.52 411.05 137.71
2016-12-31 3,408.52 353.59 130.51
2016-09-30 3,881.12 402.79 131.31
2016-06-30 4,109.22 372.89 127.81
2016-03-31 4,125.23 407.66 126.09
2015-12-31 4,249.48 274.31 206.50
2015-09-30 4,504.58 278.61 202.70
2015-06-30 4,642.10 304.76 202.26
2015-03-31 4,980.78 334.21 115.40
2014-12-31 5,113.40 330.60 192.32
2014-09-30 4,996.50 331.20 186.32
2014-06-30 4,855.40 344.20 99.90
2014-03-31 4,684.90 436.70 178.02
2013-12-31 4,535.34 435.54 205.24
2013-09-30 4,444.74 419.24 201.04
2013-06-30 4,434.54 350.44 197.84
2013-03-31 4,364.94 244.04 192.94
2012-12-31 4,202.51 320.59 154.30
2012-09-30 4,157.81 298.49 151.50
2012-06-30 4,098.61 265.89 148.30

*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 Acrylics has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Vardhman Acrylics used its assets more efficiently than the IN Luxury industry average last year based on Return on Assets.
  • Vardhman Acrylics's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Vardhman Acrylics'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 Acrylics has a total score of 2/6, 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.

VARDHACRLC Health

 How is Vardhman Acrylics'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 Acrylics's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Vardhman Acrylics is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Vardhman Acrylics's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Vardhman Acrylics'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 1011.9x 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 Acrylics Company Filings, last reported 3 months ago.

NSEI:VARDHACRLC Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 3,253.50 2.30 1,034.40
2018-09-30 3,253.50 2.30 1,034.40
2018-06-30 3,193.82 13.28 1,454.79
2018-03-31 3,193.82 13.28 1,454.79
2017-12-31 2,978.00 123.90 2,429.90
2017-09-30 2,978.00 123.90 2,429.90
2017-06-30 2,954.10 8.80 2,467.70
2017-03-31 2,954.15 8.83 2,465.47
2016-12-31 3,482.10 3.30 2,583.00
2016-09-30 3,482.10 3.30 2,583.00
2016-06-30 2,952.25 7.35 1,354.63
2016-03-31 3,178.21 7.35 1,507.39
2015-12-31 3,351.50 3.60 1,276.10
2015-09-30 3,351.50 3.60 1,276.10
2015-06-30 3,213.15 8.15 1,586.99
2015-03-31 3,213.15 8.15 1,586.99
2014-12-31 3,183.20 7.10 1,729.40
2014-09-30 3,183.20 7.10 1,729.40
2014-06-30 3,010.80 16.00 1,231.90
2014-03-31 3,010.80 15.98 1,231.88
2013-12-31
2013-09-30
2013-06-30 2,594.40 43.53 1,402.06
2013-03-31 2,594.40 43.53 1,402.06
2012-12-31 2,558.90 244.30 295.60
2012-09-30 2,558.90 244.30 295.60
2012-06-30 2,508.13 81.38 214.23
  • Vardhman Acrylics's level of debt (0.1%) 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 (0.9% vs 0.1% today).
  • Debt is well covered by operating cash flow (1276.8%, greater than 20% of total debt).
  • Vardhman Acrylics earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Vardhman Acrylics'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 Acrylics has a total score of 6/6, 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.

VARDHACRLC Dividends

 What is Vardhman Acrylics'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
4.83%
Current annual income from Vardhman Acrylics dividends.
If you bought ₹2,000 of Vardhman Acrylics shares you are expected to receive ₹97 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 Acrylics's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.51%).
  • Vardhman Acrylics's dividend is above the markets top 25% of dividend payers in India (1.95%).
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
NSEI:VARDHACRLC 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 0 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 1400 Stocks 1.4%
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 2%

Industry and Market average data is calculated daily.

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

NSEI:VARDHACRLC Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2018-08-06 2.000 4.772
2018-05-03 2.000 4.337
2017-09-25 1.500 3.124
2017-05-03 1.500 3.146
2016-03-09 5.000 12.191
2015-07-27 1.000 3.363

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

  • Vardhman Acrylics has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but Vardhman Acrylics only paid a dividend in the past 4 years.
Current Payout to shareholders
What portion of Vardhman Acrylics's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (2x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Vardhman Acrylics'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 Acrylics afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Vardhman Acrylics has a total score of 3/6, see the detailed checks below.


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

VARDHACRLC Management

 What is the CEO of Vardhman Acrylics'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
Bal Choudhary
COMPENSATION ₹8,456,000
AGE 67
TENURE AS CEO 10.9 years
CEO Bio

Mr. Bal Krishan Choudhary, B.Sc., M.Com., M.B.A., Director of Operations for Vardhman Acrylics at Vardhman Textiles Limited. Mr. Choudhary has been the Managing Director at Vardhman Acrylics Ltd. since May 12, 2008 and served as its President. He served as the President of Steel Division at Vardhman Textiles Limited. He has 32 years of experience in Steel and Textile businesses. He joined Vardhman Textiles on December 23, 1985. He served as the Chief Commercial Manager of Usha Alloys & Steels Ltd. Mr. Choudhary has been a Non Independent Executive Director at Vardhman Acrylics Ltd. since May 12, 2008. He serves as a Director of Bharuch Eco-Aqua Infrastructure Limited. He has been a Non-Executive Independent Director of Vardhman Spinning & General Mills since 2000. He has been a Non-Executive Non-Independent Director at Vardhman Special Steels Limited since March 15, 2011. He served as a Non-Executive Independent Director of Vardhman Holdings Ltd., from January 28, 2000 to May 13, 2008. He served as an Executive Director of Vardhman Textiles Limited. Mr. Choudhary is a Post Graduate in Commerce. He holds a Master in Business Administration (Gold Medalist) and a B.Sc.

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

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

6.3
Average Tenure
59
Average Age
  • The average tenure for the Vardhman Acrylics management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Bal Choudhary

TITLE
MD & Non-Independent Executive Director
COMPENSATION
₹8M
AGE
67
TENURE
10.9 yrs

Vivek Gupta

TITLE
CFO & Senior VP
AGE
51

Ankur Gauba

TITLE
Company Secretary & Compliance Officer
TENURE
1.2 yrs

Yogesh Vijayvergia

TITLE
Vice President
AGE
59
TENURE
21.1 yrs

Arun Bharadi

TITLE
General Manager of Operation
AGE
51
TENURE
1.6 yrs

Bhooshan Lal Uppal

TITLE
Unit Head
AGE
68
Board of Directors Tenure

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

15.5
Average Tenure
68.5
Average Age
  • The average tenure for the Vardhman Acrylics board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Shri Oswal

TITLE
Non-Executive Chairman
AGE
76

Bal Choudhary

TITLE
MD & Non-Independent Executive Director
COMPENSATION
₹8M
AGE
67
TENURE
10.9 yrs

Sachit Jain

TITLE
Non-Executive Non-Independent Director
AGE
52
TENURE
23.3 yrs

Munish Gupta

TITLE
Non-Executive Independent Director
COMPENSATION
₹320K
AGE
80
TENURE
16 yrs

Sanjit Singh

TITLE
Non Executive Independent Director
COMPENSATION
₹180K
AGE
59
TENURE
15.5 yrs

Surinder Bansal

TITLE
Non-Executive Independent Director
COMPENSATION
₹115K
AGE
72
TENURE
10.3 yrs

Darshan Sharma

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

Apinder Sodhi

TITLE
Independent Director
COMPENSATION
₹70K
AGE
56
TENURE
1.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
X
Management checks
We assess Vardhman Acrylics'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 Acrylics 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.

VARDHACRLC News

Simply Wall St News

Examining Vardhman Acrylics Limited’s (NSE:VARDHACRLC) Weak Return On Capital Employed

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Does Vardhman Acrylics Limited (NSE:VARDHACRLC) Have A Good P/E Ratio?

To keep it practical, we'll show how Vardhman Acrylics Limited's (NSE:VARDHACRLC) P/E ratio could help you assess the value on offer. … Based on the last twelve months, Vardhman Acrylics's P/E ratio is 10.12. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Is Vardhman Acrylics's (NSE:VARDHACRLC) 153% Share Price Increase Well Justified?

One great example is Vardhman Acrylics Limited (NSE:VARDHACRLC) which saw its share price drive 153% higher over five years. … While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. … During five years of share price growth, Vardhman Acrylics actually saw its EPS drop 3.1% per year.

Simply Wall St -

Vardhman Acrylics Limited (NSE:VARDHACRLC): Should The Recent Earnings Drop Worry You?

Analyzing Vardhman Acrylics Limited's (NSE:VARDHACRLC) track record of past performance is a valuable exercise for investors. … Today I will assess VARDHACRLC's recent performance announced on 31 December 2018 and compare these figures to its long-term trend and industry movements. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 1.0%, indicating the rate at which VARDHACRLC is growing has slowed down

Simply Wall St -

Vardhman Acrylics Limited (NSE:VARDHACRLC) Delivered A Better ROE Than Its Industry

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … One way to conceptualize this, is that for each ₹1 of shareholders' equity it has, the company made ₹0.098 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Should Vardhman Acrylics Limited (NSE:VARDHACRLC) Be Part Of Your Portfolio?

In the last few years Vardhman Acrylics Limited (NSE:VARDHACRLC) has paid a dividend to shareholders. … Does Vardhman Acrylics tick all the boxes of a great dividend stock? … See our latest analysis for Vardhman Acrylics?

Simply Wall St -

Why Vardhman Acrylics Limited's (NSE:VARDHACRLC) CEO Pay Matters To You

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Bal Choudhary's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that Vardhman Acrylics Limited has a market cap of ₹3.3b, and is paying total annual CEO compensation of ₹8.5m.

Simply Wall St -

Here's What Vardhman Acrylics Limited's (NSE:VARDHACRLC) P/E Ratio Is Telling Us

To keep it practical, we'll show how Vardhman Acrylics Limited's (NSE:VARDHACRLC) P/E ratio could help you assess the value on offer. … Vardhman Acrylics has a P/E ratio of 7.26, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Should We Be Delighted With Vardhman Acrylics Limited's (NSE:VARDHACRLC) ROE Of 13%?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Our data shows Vardhman Acrylics has a return on equity of 13% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Does Vardhman Acrylics Limited's (NSE:VARDHACRLC) CEO Pay Matter?

Recognizing whether CEO incentives are aligned with shareholders is a crucial part of investing. … Incentives can be in the form of compensation, which should always be structured in a way that promotes value-creation to shareholders. … Choudhary’s pay and compare this to the company’s performance over the same period, as well as measure it against other

Simply Wall St -

VARDHACRLC Company Info

Description

Vardhman Acrylics Limited manufactures and supplies acrylic fiber and tow in India. Its products are used in apparels, including children clothes, sweaters, mufflers, T-shirts, scarves, socks, ties, under wears, shirtings, track-suits, shalwar kamiz, and jerseys; and house-hold uses, such as carpets, woven blankets, blankets, rug bed sheets, buntings, bath mats, towels, and draperies. The company markets its products under the VARLAN brand name. Vardhman Acrylics Limited was incorporated in 1990 and is based in Ludhiana, India. Vardhman Acrylics Limited is a subsidiary of Vardhman Textiles Limited.

Details
Name: Vardhman Acrylics Limited
VARDHACRLC
Exchange: NSEI
Founded: 1990
₹3,399,386,455
80,363,746
Website: http://www.vardhmanacrylics.com
Address: Vardhman Acrylics Limited
Vardhman Premises,
Chandigarh Road,
Ludhiana,
Punjab, 141010,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NSEI VARDHACRLC Equity Shares National Stock Exchange of India IN INR 30. Sep 2003
Number of employees
Current staff
Staff numbers
306
Vardhman Acrylics employees.
Industry
Textiles
Consumer Durables
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/24 12:33
End of day share price update: 2019/04/24 00:00
Last earnings filing: 2019/02/02
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.