NSEI:VARDHACRLC

Stock Analysis Report

Executive Summary

Vardhman Acrylics Limited manufactures and supplies acrylic fiber and tow in India.

Snowflake

Fundamentals

Flawless balance sheet second-rate dividend payer.

Share Price & News

How has Vardhman Acrylics's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: VARDHACRLC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.2%

VARDHACRLC

0.09%

IN Luxury

-0.4%

IN Market


1 Year Return

-19.0%

VARDHACRLC

3.7%

IN Luxury

3.5%

IN Market

Return vs Industry: VARDHACRLC underperformed the Indian Luxury industry which returned 3.7% over the past year.

Return vs Market: VARDHACRLC underperformed the Indian Market which returned 3.5% over the past year.


Shareholder returns

VARDHACRLCIndustryMarket
7 Day-2.2%0.09%-0.4%
30 Day-7.4%-2.6%1.6%
90 Day-7.5%8.7%8.0%
1 Year-19.0%-19.0%4.5%3.7%5.5%3.5%
3 Year-17.3%-23.5%70.4%68.2%39.1%32.1%
5 Year65.0%29.1%101.6%97.9%38.8%26.3%

Price Volatility Vs. Market

How volatile is Vardhman Acrylics's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

7.4x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: VARDHACRLC (₹33.75) is trading above our estimate of fair value (₹30.8)

Significantly Below Fair Value: VARDHACRLC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: VARDHACRLC is good value based on its PE Ratio (7.4x) compared to the Luxury industry average (10x).

PE vs Market: VARDHACRLC is good value based on its PE Ratio (7.4x) compared to the Indian market (13.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: VARDHACRLC is overvalued based on its PB Ratio (0.8x) compared to the IN Luxury industry average (0.6x).


Next Steps

Future Growth

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

18.4%

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.


Next Steps

Past Performance

How has Vardhman Acrylics performed over the past 5 years?

3.7%

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 (10.6%) are lower than last year (12.2%).


Past Earnings Growth Analysis

Earnings Trend: VARDHACRLC's earnings have grown by 3.7% 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 (-22.1%) over the past year, making it difficult to compare to the Luxury industry average (4.2%).


Return on Equity

High ROE: VARDHACRLC's Return on Equity (10.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Vardhman Acrylics's financial position?


Financial Position Analysis

Short Term Liabilities: VARDHACRLC's short term assets (₹3.5B) exceeds its short term liabilities (₹1.2B)

Long Term Liabilities: VARDHACRLC's short term assets (₹3.5B) exceeds its long term liabilities (173.1M)


Debt to Equity History and Analysis

Debt Level: VARDHACRLC's debt to equity ratio (0.04%) is considered satisfactory.

Reducing Debt: VARDHACRLC's debt to equity ratio has reduced from 0.2% to 0.04% over the past 5 years.

Debt Coverage: VARDHACRLC's debt is well covered by operating cash flow (4510.7%).

Interest Coverage: VARDHACRLC earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: VARDHACRLC has a high level of physical assets or inventory.

Debt Coverage by Assets: VARDHACRLC's debt is covered by short term assets (assets are 2315.3x debt).


Next Steps

Dividend

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

7.41%

Current Dividend Yield


Dividend Yield vs Market

company7.4%marketbottom25%0.6%markettop25%2.4%industryaverage0.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: VARDHACRLC's dividend (7.41%) is higher than the bottom 25% of dividend payers in the Indian market (0.58%).

High Dividend: VARDHACRLC's dividend (7.41%) is in the top 25% of dividend payers in the Indian market (2.42%)


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 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (54.8%), VARDHACRLC's dividend payments are 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

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

16.6yrs

Average board tenure


CEO

Bal Choudhary (68yo)

11.5yrs

Tenure

₹8,543,000

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 ($USD118.80K) is above average for companies of similar size in the Indian market ($USD33.51K).

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


Board Age and Tenure

16.6yrs

Average Tenure

69.5yo

Average Age

Experienced Board: VARDHACRLC's board of directors are seasoned and experienced ( 16.6 years average tenure).


Insider Trading

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.


Management Team

  • Bal Choudhary (68yo)

    MD & Non-Independent Executive Director

    • Tenure: 11.5yrs
    • Compensation: ₹8.54m
  • Vivek Gupta (52yo)

    CFO & Senior VP

    • Tenure: 0yrs
  • Arun Bharadi (52yo)

    General Manager of Operation

    • Tenure: 0yrs
  • Basudev Sharma (48yo)

    Vice President

    • Tenure: 0yrs
  • Satin Katyal (29yo)

    Company Secretary & Compliance Officer

    • Tenure: 0.5yrs

Board Members

  • Darshan Sharma (71yo)

    Non-Executive Non-Independent Director

    • Tenure: 28.9yrs
  • Sachit Jain (53yo)

    Non-Executive Non-Independent Director

    • Tenure: 23.9yrs
  • Shri Oswal (77yo)

    Non-Executive Chairman

    • Tenure: 0yrs
  • Surinder Bansal (73yo)

    Non-Executive Independent Director

    • Tenure: 10.8yrs
    • Compensation: ₹115.00k
  • Bal Choudhary (68yo)

    MD & Non-Independent Executive Director

    • Tenure: 11.5yrs
    • Compensation: ₹8.54m
  • Munish Gupta (81yo)

    Non-Executive Independent Director

    • Tenure: 16.6yrs
    • Compensation: ₹280.00k
  • Sanjit Singh (60yo)

    Non Executive Independent Director

    • Tenure: 16.1yrs
    • Compensation: ₹200.00k
  • Apinder Sodhi (57yo)

    Non-Executive Independent Director

    • Tenure: 2yrs
    • Compensation: ₹180.00k

Company Information

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


Key Information

  • Name: Vardhman Acrylics Limited
  • Ticker: VARDHACRLC
  • Exchange: NSEI
  • Founded: 1990
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹2.712b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VARDHACRLCNSEI (National Stock Exchange of India)YesEquity SharesININRSep 2003

Biography

Vardhman Acrylics Limited manufactures and supplies acrylic fiber and tow in India. The company markets its products under the VARLAN brand name. Vardhman Acrylics Limited was incorporated in 1990 and is b ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/19 12:34
End of Day Share Price2019/11/19 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.