Loading...

Vardhman Polytex

NSEI:VARDMNPOLY
Snowflake Description

Slightly overvalued with imperfect balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
VARDMNPOLY
NSEI
₹226M
Market Cap
  1. Home
  2. IN
  3. Consumer Durables
Company description

Vardhman Polytex Limited, through its subsidiaries, manufactures and sells yarns and garments in India and internationally. The last earnings update was 136 days ago. More info.


Add to Portfolio Compare Print
  • Vardhman Polytex has significant price volatility in the past 3 months.
VARDMNPOLY Share Price and Events
7 Day Returns
12.6%
NSEI:VARDMNPOLY
0.3%
IN Luxury
1%
IN Market
1 Year Returns
-55.9%
NSEI:VARDMNPOLY
-8.7%
IN Luxury
-8.2%
IN Market
VARDMNPOLY Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Vardhman Polytex (VARDMNPOLY) 12.6% -6.4% -21.2% -55.9% -71% -66.9%
IN Luxury 0.3% -0.2% -2.3% -8.7% 55.9% 186.4%
IN Market 1% -2.2% -1.2% -8.2% 46.7% 78.8%
1 Year Return vs Industry and Market
  • VARDMNPOLY underperformed the Luxury industry which returned -8.7% over the past year.
  • VARDMNPOLY underperformed the Market in India which returned -8.2% over the past year.
Price Volatility
VARDMNPOLY
Industry
5yr Volatility vs Market

VARDMNPOLY Value

 Is Vardhman Polytex 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 Polytex 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    Our calculation method for this is changing soon.

Below are the data sources, inputs and calculation used to determine the intrinsic value for Vardhman Polytex.

NSEI:VARDMNPOLY 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 22.5%
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:VARDMNPOLY
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 7.5%
Luxury Unlevered Beta Simply Wall St/ S&P Global 0.57
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.573 (1 + (1- 35%) (2513.05%))
9.935
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (2 * 7.45%)
22.45%

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

The calculations below outline how an intrinsic value for Vardhman Polytex is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NSEI:VARDMNPOLY DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (INR, Millions) 113.09 106.19 99.71 93.63 87.91
Source Est @ -6.1% Est @ -6.1% Est @ -6.1% Est @ -6.1% Est @ -6.1%
Present Value
Discounted (@ 22.45%)
92.35 70.82 54.31 41.64 31.93
Present value of next 5 years cash flows ₹291.06
NSEI:VARDMNPOLY DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= ₹87.91 × (1 + 7.55%) ÷ (22.45% – 7.55%)
₹634.57
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= ₹634.57 ÷ (1 + 22.45%)5
₹230.51
NSEI:VARDMNPOLY Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= ₹291.06 + ₹230.51
₹521.57
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹521.57 / 22.29
₹23.63
NSEI:VARDMNPOLY Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in NSEI:VARDMNPOLY represents 1.00986x of BSE:514175
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.00986x
Value per Share
(Listing Adjusted, INR)
= Value per Share (INR) x Listing Adjustment Factor
= ₹ 23.40 x 1.00986
₹23.63
Value per share (INR) From above. ₹23.63
Current discount Discount to share price of ₹10.25
= -1 x (₹10.25 - ₹23.63) / ₹23.63
56.6%

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

Current Discount
Amount off the current price Vardhman Polytex is available for.
Intrinsic value
>50%
Share price is ₹10.25 vs Future cash flow value of ₹23.63
Current Discount Checks
For Vardhman Polytex to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Vardhman Polytex's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Vardhman Polytex's share price is below the future cash flow value, and at a substantial discount (> 40%).
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 Polytex's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Vardhman Polytex's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:VARDMNPOLY PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-03-31) in INR ₹-77.01
BSE:514175 Share Price ** BSE (2019-02-22) in INR ₹10.15
India Luxury Industry PE Ratio Median Figure of 236 Publicly-Listed Luxury Companies 11.69x
India Market PE Ratio Median Figure of 2,709 Publicly-Listed Companies 15.49x

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

** Primary Listing of Vardhman Polytex.

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

= BSE:514175 Share Price ÷ EPS (both in INR)

= 10.15 ÷ -77.01

-0.13x

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

  • Vardhman Polytex is loss making, we can't compare its value to the IN Luxury industry average.
  • Vardhman Polytex is loss making, we can't compare the value of its earnings to the India market.
Price based on expected Growth
Does Vardhman Polytex's expected growth come at a high price?
Raw Data
NSEI:VARDMNPOLY PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -0.13x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
India Luxury Industry PEG Ratio Median Figure of 27 Publicly-Listed Luxury Companies 0.99x
India Market PEG Ratio Median Figure of 607 Publicly-Listed Companies 1.15x

*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 Polytex, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Vardhman Polytex's assets?
Raw Data
NSEI:VARDMNPOLY PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-03-31) in INR ₹-105.70
BSE:514175 Share Price * BSE (2019-02-22) in INR ₹10.15
India Luxury Industry PB Ratio Median Figure of 306 Publicly-Listed Luxury Companies 0.71x
India Market PB Ratio Median Figure of 3,588 Publicly-Listed Companies 1.05x
NSEI:VARDMNPOLY PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BSE:514175 Share Price ÷ Book Value per Share (both in INR)

= 10.15 ÷ -105.70

-0.1x

* Primary Listing of Vardhman Polytex.

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

  • Vardhman Polytex has negative assets, we can't compare the value of its assets to the IN Luxury industry average.
X
Value checks
We assess Vardhman Polytex'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 Polytex 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.

VARDMNPOLY Future Performance

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

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 Polytex 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 Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

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
18.4%
Expected Luxury industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Vardhman Polytex expected to grow at an attractive rate?
  • Unable to compare Vardhman Polytex's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Vardhman Polytex's earnings growth to the India market average as no estimate data is available.
  • Unable to compare Vardhman Polytex's revenue growth to the India market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NSEI:VARDMNPOLY Future Growth Rates Data Sources
Data Point Source Value (per year)
India Luxury Industry Earnings Growth Rate Market Cap Weighted Average 18.4%
India Luxury Industry Revenue Growth Rate Market Cap Weighted Average 15%
India Market Earnings Growth Rate Market Cap Weighted Average 18.6%
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:VARDMNPOLY Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (10 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:VARDMNPOLY Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2018-03-31 6,410 509 -1,717
2017-03-31 9,255 918 -335
2016-03-31 9,536 1,089 -150

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Vardhman Polytex is high growth as no earnings estimate data is available.
  • Unable to determine if Vardhman Polytex 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:VARDMNPOLY Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (10 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Vardhman Polytex Company Filings, last reported 10 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:VARDMNPOLY Past Financials Data
Date (Data in INR Millions) EPS *
2018-03-31 -77.01
2017-03-31 -15.01
2016-03-31 -6.73

*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 Polytex will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Take a look at our analysis of VARDMNPOLY’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  2. Vardhman Polytex's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Consumer Durables companies here
  3. Vardhman Polytex's competitive advantages and company strategy can generally be found in its financial reports archived here.
  4. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess Vardhman Polytex'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 Polytex 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.

VARDMNPOLY Past Performance

  How has Vardhman Polytex 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 Polytex'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 Polytex does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Vardhman Polytex's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Vardhman Polytex's 1-year growth to the IN Luxury industry average as it is not currently profitable.
Earnings and Revenue History
Vardhman Polytex'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 Polytex Company Filings, last reported 10 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:VARDMNPOLY Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-03-31 6,409.64 -1,716.68 652.12
2017-03-31 9,254.82 -334.52 740.76
2016-03-31 9,536.29 -150.12 749.91
2015-03-31 10,214.93 -449.12 751.73
2014-03-31 10,547.23 -64.80 1,157.93
2013-03-31 9,442.36 -49.61 981.42
2012-03-31 8,549.41 -995.62 924.33

*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.
  • It is difficult to establish if Vardhman Polytex has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
  • It is difficult to establish if Vardhman Polytex has efficiently used its assets last year compared to the IN Luxury industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Vardhman Polytex improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Vardhman Polytex'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 Polytex has a total score of 0/6, 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.

VARDMNPOLY Health

 How is Vardhman Polytex'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 Polytex's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Vardhman Polytex's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Vardhman Polytex's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Vardhman Polytex'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.
  • Vardhman Polytex has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
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 Polytex Company Filings, last reported 10 months ago.

NSEI:VARDMNPOLY Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-03-31 -2,233.99 5,685.85 16.99
2017-03-31 -512.48 5,244.50 65.81
2016-03-31 -174.01 5,336.98 94.75
2015-03-31 284.01 5,811.34 107.33
2014-03-31 645.18 6,005.51 223.88
2013-03-31 477.61 6,466.94 293.92
2012-03-31 375.70 6,597.08 96.91
  • Vardhman Polytex has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.
  • Irrelevant to check if Vardhman Polytex's debt level has increased considering it has negative shareholder equity.
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Whilst loss making Vardhman Polytex has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making Vardhman Polytex has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 13.3% per year.
X
Financial health checks
We assess Vardhman Polytex'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 Polytex has a total score of 2/6, 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.

VARDMNPOLY Dividends

 What is Vardhman Polytex'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
0%
Current annual income from Vardhman Polytex dividends.
If you bought ₹2,000 of Vardhman Polytex shares you are expected to receive ₹0 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?
  • Unable to evaluate Vardhman Polytex's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Vardhman Polytex's dividend against the top 25% market benchmark as the company has not reported any payouts.
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:VARDMNPOLY 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 109 Stocks 0.7%
India Market Average Dividend Yield Market Cap Weighted Average of 1397 Stocks 1.4%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.6%
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:VARDMNPOLY Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2010-05-10 0.000 0.000
2009-06-16 0.000 0.000
2009-03-31 0.000 0.000
2009-02-24 2.000 7.198

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

  • Unable to perform a dividend volatility check as Vardhman Polytex has not reported any payouts.
  • Unable to verify if Vardhman Polytex's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Vardhman Polytex's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Vardhman Polytex has not reported any payouts.
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 Polytex'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 Polytex afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Vardhman Polytex has a total score of 0/6, see the detailed checks below.


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

VARDMNPOLY Management

 What is the CEO of Vardhman Polytex'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
Adish Oswal
COMPENSATION ₹2,582,000
AGE 38
TENURE AS CEO 0.2 years
CEO Bio

Mr. Adish Oswal, B.Com, has been Chairman, Managing Director and Chief Operating Officer at Vardhman Polytex Limited since December 26, 2018. He serves as Managing Director of Oswal Retail Pvt. Ltd. Mr. Oswal served as a Managing Director of Business & Corporate Affairs at Vardhman Polytex Ltd. until December 2018 and serves as an Executive Director since July 31, 2009. He is actively participating into administrative and day-to-day functioning of Vardhman Polytex and involved into the Strategic Decision making and key management decisions for the future growth. Mr. Oswal has been Executive Director of Vardhman Polytex Ltd since July 31, 2009. He serves as a Director of Oswal P.M. Hammerle Textiles Ltd., Oswal Retail (P) Ltd., Oswal Holding (P) Ltd., Oswal Infratech (P) Ltd., and Allepy Investment & Trading Co. (P).

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

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

0.3
Average Tenure
51
Average Age
  • The average tenure for the Vardhman Polytex management team is less than 2 years, this suggests a new team.
Management Team

Adish Oswal

TITLE
Chairman
COMPENSATION
₹3M
AGE
38
TENURE
0.2 yrs

Kuldeep Singla

TITLE
Chief Financial Officer
COMPENSATION
₹2M
AGE
38
TENURE
2.4 yrs

Kamal Kamila

TITLE
Vice President of Technical
AGE
54

Parvinder Singh

TITLE
Executive Vice President
AGE
50

Ashok Goyal

TITLE
Chief Production Officer
COMPENSATION
₹6M
AGE
59

Rohit Bhasker

TITLE
Vice-President
AGE
53

Ajay Ratra

TITLE
Company Secretary & Compliance Officer
TENURE
0.3 yrs

Sunil Bhatnagar

TITLE
Head of Corporate Human Resources

Sandeep Bahl

TITLE
General Manager
AGE
51
Board of Directors Tenure

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

0.8
Average Tenure
44
Average Age
  • The average tenure for the Vardhman Polytex board of directors is less than 3 years, this suggests a new board.
Board of Directors

Adish Oswal

TITLE
Chairman
COMPENSATION
₹3M
AGE
38
TENURE
0.2 yrs

Manju Oswal

TITLE
Non Executive Director
COMPENSATION
₹30K
AGE
61
TENURE
1.5 yrs

Harpal Singh

TITLE
Non-Executive Independent Director
AGE
50
TENURE
0.8 yrs

Aarti Rawat

TITLE
Independent Non-Executive Director
AGE
32
TENURE
0.8 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 (₹)
04. Jan 19 Buy Amrante Trust Company 01. Oct 18 31. Dec 18 10,000 ₹11.80 ₹118,000
X
Management checks
We assess Vardhman Polytex'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 Polytex 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.

VARDMNPOLY News

Simply Wall St News

Do Insiders Own Shares In Vardhman Polytex Limited (NSE:VARDMNPOLY)?

If you want to know who really controls Vardhman Polytex Limited (NSE:VARDMNPOLY), then you'll have to look at the makeup of its share registry. … Vardhman Polytex is not a large company by global standards. … View our latest analysis for Vardhman Polytex

Simply Wall St -

Should You Worry About Vardhman Polytex Limited's (NSE:VARDMNPOLY) CEO Pay?

Ashok Oswal took the reins as CEO of Vardhman Polytex Limited's (NSE:VARDMNPOLY) and grew market cap to ₹273.06m recently. … Understanding how CEOs are incentivised to run and grow their company is an important aspect of investing in a stock. … See our latest analysis for Vardhman Polytex

Simply Wall St -

Who Are The Major Shareholders Of Vardhman Polytex Limited (NSE:VARDMNPOLY)?

See our latest analysis for Vardhman Polytex NSEI:VARDMNPOLY Ownership_summary Jun 5th 18 Institutional Ownership Institutional investors transact in large blocks which can influence the momentum of stock prices, at least in the short-term, especially when there is a low level of public shares available on the market to trade. … Private Company Ownership Another group of owners that a potential investor in VARDMNPOLY should consider are private companies, with a stake of 57.79%. … Thus, potential investors should look into these business relations and check how it can impact long-term shareholder returns.Next Steps: With a low level of institutional ownership, investors in VARDMNPOLY need not worry about non-fundamental factors such as ownership structure causing large impact on stock prices.

Simply Wall St -

Vardhman Polytex Limited (NSE:VARDMNPOLY): Does The Earnings Decline Make It An Underperformer?

For the most up-to-date info, I use data from the most recent 12 months, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. … NSEI:VARDMNPOLY Income Statement Apr 11th 18 We can further analyze Vardhman Polytex's loss by looking at what the industry has been experiencing over the past few years. … Each year, for the past half a decade Vardhman Polytex's revenue growth has been fairly muted, with an annual growth rate of 0.99%, on average.

Simply Wall St -

Who Are The Largest Shareholders In Vardhman Polytex Limited (NSE:VARDMNPOLY)?

View our latest analysis for Vardhman Polytex NSEI:VARDMNPOLY Ownership_summary Mar 2nd 18 Institutional Ownership Institutional investors are one of the largest group of market participants and their buy-sell decisions on a company's stock can significantly impact prices, more so, when there are relatively small amounts of shares available on the market to trade. … Private Company Ownership Another important group of owners for potential investors in VARDMNPOLY are private companies that hold a stake of 57.79% in VARDMNPOLY. … As a result, potential investors should further explore the company's business relations with these companies and find out if they can affect shareholder returns in the long-term.Next Steps: Institutional ownership in VARDMNPOLY is not at a level that would concern investors.

Simply Wall St -

What Are The Drivers Of Vardhman Polytex Limited's (NSE:VARDMNPOLY) Risks?

The second type is market risk, one that you cannot diversify away, since it arises from macroeconomic factors which directly affects all the stocks in the market. … With a market cap of IN₨556.16M, VARDMNPOLY falls within the small-cap spectrum of stocks, which are found to experience higher relative risk compared to larger companies. … Depending on the composition of your portfolio, low-beta stocks such as VARDMNPOLY is valuable to lower your risk of market exposure, in particular, during times of economic decline.

Simply Wall St -

Vardhman Polytex Limited (NSE:VARDMNPOLY): Does The -120.1% Earnings Decline Make It An Underperformer?

After reading Vardhman Polytex Limited's (NSEI:VARDMNPOLY) most recent earnings announcement (31 March 2017), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. … I use data from the most recent 12 months, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. … For Vardhman Polytex, its latest twelve-month earnings is -₹330.4M, which, against last year’s figure, has become more negative.

Simply Wall St -

VARDMNPOLY Company Info

Map
Description

Vardhman Polytex Limited, through its subsidiaries, manufactures and sells yarns and garments in India and internationally. The company provides yarns, including grey cotton yarns, polyester cotton yarns, compact yarns, organic cotton yarns, BCI cotton yarns and blends, dyed yarns, SUPIMA cotton yarns, modal and cotton/modal blends, bamboo and cotton/bamboo blends, slub/multicount yarns, and lycra/spandex blended core spun yarns. It also offers fabrics, including yarn dyed shirting fabrics; various fabric constructions; and fabrics with mechanical and chemical finishes. In addition, the company provides garments, such as polo and round neck T-shirts, hoodies, sweatshirts, etc. for men, women, and kids. Further, the company develops real estate projects. The company was incorporated in 1980 and is based in Ludhiana, India.

Details
Name: Vardhman Polytex Limited
VARDMNPOLY
Exchange: NSEI
Founded: 1980
₹226,253,213
22,290,957
Website: http://www.oswalgroup.com
Address: Vardhman Polytex Limited
Vardhman Park,
Chandigarh Road,
Ludhiana,
Punjab, 141123,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BSE 514175 Equity Shares Mumbai Stock Exchange IN INR 26. Feb 2001
NSEI VARDMNPOLY Equity Shares National Stock Exchange of India IN INR 26. Feb 2001
Number of employees
Current staff
Staff numbers
0
Vardhman Polytex employees.
Industry
Textiles
Consumer Durables
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/02/23 12:55
End of day share price update: 2019/02/22 00:00
Last earnings filing: 2018/10/10
Last earnings reported: 2018/03/31
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.