Vardhman Polytex
Market Cap
₹46.8m
Last Updated
2020/02/19 12:54 UTC
Data Sources
Company Financials
Executive Summary
Vardhman Polytex Limited, through its subsidiaries, manufactures and sells yarns and garments in India and internationally.
Rewards
Risk Analysis
Currently unprofitable and not forecast to become profitable over the next 3 years
Snowflake Analysis
Slightly overvalued with weak fundamentals.
Share Price & News
How has Vardhman Polytex's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: VARDMNPOLY's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
7.7%
VARDMNPOLY
-0.5%
IN Luxury
-1.5%
IN Market
1 Year Return
-76.5%
VARDMNPOLY
18.2%
IN Luxury
10.7%
IN Market
Return vs Industry: VARDMNPOLY underperformed the Indian Luxury industry which returned 18.2% over the past year.
Return vs Market: VARDMNPOLY underperformed the Indian Market which returned 10.7% over the past year.
Shareholder returns
| VARDMNPOLY | Industry | Market | |
|---|---|---|---|
| 7 Day | 7.7% | -0.5% | -1.5% |
| 30 Day | -25.0% | 3.0% | -2.7% |
| 90 Day | -8.7% | 9.2% | 1.3% |
| 1 Year | -76.5%-76.5% | 19.0%18.2% | 12.7%10.7% |
| 3 Year | -97.4%-97.4% | 52.2%48.8% | 22.0%15.1% |
| 5 Year | -95.4%-95.4% | 106.9%100.1% | 34.5%22.0% |
Price Volatility Vs. Market
How volatile is Vardhman Polytex's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 months ago | Simply Wall St
Did Changing Sentiment Drive Vardhman Polytex's (NSE:VARDMNPOLY) Share Price Down A Disastrous 96%?6 months ago | Simply Wall St
Introducing Vardhman Polytex (NSE:VARDMNPOLY), The Stock That Collapsed 95%10 months ago | Simply Wall St
Imagine Owning Vardhman Polytex (NSE:VARDMNPOLY) And Trying To Stomach The 75% Share Price DropValuation
Is Vardhman Polytex undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: VARDMNPOLY (₹2.1) is trading below our estimate of fair value (₹440.91)
Significantly Below Fair Value: VARDMNPOLY is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: VARDMNPOLY is unprofitable, so we can't compare its PE Ratio to the Luxury industry average.
PE vs Market: VARDMNPOLY is unprofitable, so we can't compare its PE Ratio to the Indian market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate VARDMNPOLY's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: VARDMNPOLY has negative assets, so we can't compare its PB Ratio to the IN Luxury industry average.
Next Steps
Future Growth
How is Vardhman Polytex forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
19.9%
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 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 SimplyWall St do have past financial data.
Next Steps
- 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.
- Vardhman Polytex competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Consumer Durables industry.
Past Performance
How has Vardhman Polytex performed over the past 5 years?
-16.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: VARDMNPOLY is currently unprofitable.
Growing Profit Margin: VARDMNPOLY is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: VARDMNPOLY is unprofitable, and losses have increased over the past 5 years at a rate of -16% per year.
Accelerating Growth: Unable to compare VARDMNPOLY's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: VARDMNPOLY is unprofitable, making it difficult to compare its past year earnings growth to the Luxury industry (5.6%).
Return on Equity
High ROE: VARDMNPOLY's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Vardhman Polytex's financial position?
Financial Position Analysis
Short Term Liabilities: VARDMNPOLY has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.
Long Term Liabilities: VARDMNPOLY has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.
Debt to Equity History and Analysis
Debt Level: VARDMNPOLY has negative shareholder equity, which is a more serious situation than a high debt level.
Reducing Debt: VARDMNPOLY's has negative shareholder equity, so we do not need to check if its debt has reduced over time.
Balance Sheet
Inventory Level: VARDMNPOLY has a high level of physical assets or inventory.
Debt Coverage by Assets: VARDMNPOLY has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
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.
Stable Cash Runway: Insufficient data to determine if VARDMNPOLY has enough cash runway based on its current free cash flow.
Forecast Cash Runway: Insufficient data to determine if VARDMNPOLY has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.
Next Steps
Dividend
What is Vardhman Polytex's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate VARDMNPOLY's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate VARDMNPOLY's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if VARDMNPOLY's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if VARDMNPOLY's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: VARDMNPOLY is not paying a notable dividend for the Indian market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of VARDMNPOLY's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.2yrs
Average management tenure
CEO
Adish Oswal (39yo)
1.2yrs
Tenure
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. Os ...
CEO Compensation Analysis
Compensation vs Market: Adish's total compensation ($USD0.00) is below average for companies of similar size in the Indian market ($USD50.34K).
Compensation vs Earnings: Adish's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 1.2yrs | no data | 1.89% ₹883.1k | |
| President | 0yrs | no data | no data | |
| Company Secretary & Compliance Officer | 1.3yrs | ₹1.54m | no data | |
| Chief Financial Officer | 0.8yrs | no data | no data | |
| Vice President of Technical | 0yrs | no data | no data | |
| Head of Corporate Human Resources | 0yrs | no data | no data | |
| Executive Vice President | 0yrs | no data | no data | |
| Chief Production Officer | 0yrs | ₹5.67m | no data | |
| Chief General Manager | 0yrs | no data | no data | |
| Executive Officer | 3yrs | no data | no data |
1.2yrs
Average Tenure
51.5yo
Average Age
Experienced Management: VARDMNPOLY's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman | 1.2yrs | no data | 1.89% ₹883.1k | |
| Non Executive Director | 2.5yrs | ₹80.00k | 0.24% ₹110.7k | |
| Non-Executive Independent Director | 1.8yrs | ₹73.00k | no data | |
| Independent Non-Executive Director | 1.8yrs | ₹55.00k | no data |
1.8yrs
Average Tenure
45yo
Average Age
Experienced Board: VARDMNPOLY's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.
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 Polytex Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Vardhman Polytex Limited
- Ticker: VARDMNPOLY
- Exchange: NSEI
- Founded: 1980
- Industry: Textiles
- Sector: Consumer Durables
- Market Cap: ₹46.811m
- Shares outstanding: 22.29m
- Website: https://www.oswalgroup.com
Location
- Vardhman Polytex Limited
- Vardhman Park
- Chandigarh Road
- Ludhiana
- Punjab
- 141123
- India
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 514175 | BSE (Mumbai Stock Exchange) | Yes | Equity Shares | IN | INR | Feb 2001 |
| VARDMNPOLY | NSEI (National Stock Exchange of India) | Yes | Equity Shares | IN | INR | Feb 2001 |
Biography
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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/19 12:54 |
| End of Day Share Price | 2020/02/19 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/03/31 |
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.