BSE:500439

Stock Analysis Report

Executive Summary

Vardhman Holdings Limited operates as a non-banking financial company in India.

Snowflake

Undervalued with acceptable track record.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 500439 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-5.0%

500439

1.1%

IN Diversified Financial

-0.6%

IN Market


1 Year Return

-42.4%

500439

-0.7%

IN Diversified Financial

5.0%

IN Market

Return vs Industry: 500439 underperformed the Indian Diversified Financial industry which returned -0.7% over the past year.

Return vs Market: 500439 underperformed the Indian Market which returned 5% over the past year.


Shareholder returns

500439IndustryMarket
7 Day-5.0%1.1%-0.6%
30 Day-6.9%13.8%5.9%
90 Day-0.3%3.9%8.2%
1 Year-42.2%-42.4%1.6%-0.7%7.0%5.0%
3 Year-19.9%-20.5%22.7%12.5%36.1%29.2%
5 Year88.6%86.4%17.4%-9.1%38.6%25.8%

Price Volatility Vs. Market

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


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Valuation

Is Vardhman Holdings 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: 500439 (₹1396) is trading below our estimate of fair value (₹3311.13)

Significantly Below Fair Value: 500439 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 500439 is good value based on its PE Ratio (2.2x) compared to the Diversified Financial industry average (13.2x).

PE vs Market: 500439 is good value based on its PE Ratio (2.2x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 500439's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 500439 is good value based on its PB Ratio (0.2x) compared to the IN Diversified Financial industry average (0.6x).


Next Steps

Future Growth

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

-8.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 500439's earnings are forecast to decline over the next 3 years (-8.5% per year).

Earnings vs Market: 500439's earnings are forecast to decline over the next 3 years (-8.5% per year).

High Growth Earnings: 500439's earnings are forecast to decline over the next 3 years.

Revenue vs Market: Insufficient data to determine if 500439's revenue is forecast to grow faster than the Indian market.

High Growth Revenue: Insufficient data to determine if 500439's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 500439's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Vardhman Holdings performed over the past 5 years?

50.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 500439 has high quality earnings.

Growing Profit Margin: 500439's current net profit margins (1936.4%) are higher than last year (613.8%).


Past Earnings Growth Analysis

Earnings Trend: 500439's earnings have grown significantly by 50.3% per year over the past 5 years.

Accelerating Growth: 500439's earnings growth over the past year (13%) is below its 5-year average (50.3% per year).

Earnings vs Industry: 500439 earnings growth over the past year (13%) underperformed the Diversified Financial industry 13.3%.


Return on Equity

High ROE: 500439's Return on Equity (10.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Vardhman Holdings's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 500439 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 500439's debt is covered by short term assets.


Financial Institutions Analysis

Asset Level: 500439's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 500439 has a sufficient allowance for bad loans.

Low Risk Liabilities: 500439 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 500439 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 500439 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 500439 has an appropriate level of bad loans.


Next Steps

Dividend

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

0.36%

Current Dividend Yield


Dividend Yield vs Market

company0.4%marketbottom25%0.6%markettop25%2.4%industryaverage3.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 500439's dividend (0.36%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.56%).

High Dividend: 500439's dividend (0.36%) is low compared to the top 25% of dividend payers in the Indian market (2.36%).


Stability and Growth of Payments

Stable Dividend: 500439's dividends per share have been stable in the past 10 years.

Growing Dividend: 500439's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (0.8%), 500439's dividend payments are thoroughly 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 Holdings's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Shri Oswal (77yo)

3.3yrs

Tenure

₹3,235,000

Compensation

Mr. Shri Paul Oswal, M.Com. has been the Executive Chairman of Vardhman Textiles Limited since June 1, 2005 and its Managing Director since June 17, 2005. Mr. Oswal has been the Managing Director of Vardhm ...


CEO Compensation Analysis

Compensation vs Market: Shri's total compensation ($USD45.08K) is above average for companies of similar size in the Indian market ($USD33.52K).

Compensation vs Earnings: Shri's compensation has increased by more than 20% in the past year.


Management Age and Tenure

3.3yrs

Average Tenure

51.5yo

Average Age

Experienced Management: 500439's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

14.1yrs

Average Tenure

72.5yo

Average Age

Experienced Board: 500439's board of directors are seasoned and experienced ( 14.1 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

  • Shri Oswal (77yo)

    Chairman & MD

    • Tenure: 3.3yrs
    • Compensation: ₹3.24m
  • Shakun Oswal (73yo)

    Whole-Time Director

    • Tenure: 14.3yrs
  • Poorva Bhatia (30yo)

    Chief Financial Officer

    • Tenure: 4.8yrs
  • Swati Mangla (28yo)

    Company Secretary & Compliance Officer

    • Tenure: 0.5yrs

Board Members

  • Om Sharma (72yo)

    Independent Director

    • Tenure: 10.3yrs
    • Compensation: ₹52.50k
  • Sachit Jain (53yo)

    Non-Executive Non Independent Director

    • Tenure: 29.8yrs
  • Shri Oswal (77yo)

    Chairman & MD

    • Tenure: 3.3yrs
    • Compensation: ₹3.24m
  • Suchita Jain (51yo)

    Non-Executive Non Independent Director

    • Tenure: 14.7yrs
  • Shakun Oswal (73yo)

    Whole-Time Director

    • Tenure: 14.3yrs
  • Chaman Jain (80yo)

    Non-Executive Non Independent Director

    • Tenure: 41.3yrs
    • Compensation: ₹55.00k
  • Jagdish Singal (73yo)

    Independent Director

    • Tenure: 14.1yrs
    • Compensation: ₹37.50k
  • Sat Kanwar (80yo)

    Independent Director

    • Tenure: 11.5yrs
    • Compensation: ₹85.00k
  • Rajeev Mittal (57yo)

    Independent Director

    • Tenure: 3yrs
    • Compensation: ₹30.00k
  • Apinder Sodhi (57yo)

    • Tenure: 6.3yrs
    • Compensation: ₹100.00k

Company Information

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


Key Information

  • Name: Vardhman Holdings Limited
  • Ticker: 500439
  • Exchange: BSE
  • Founded: 1962
  • Industry: Specialized Finance
  • Sector: Diversified Financials
  • Market Cap: ₹4.455b
  • Shares outstanding: 3.19m
  • Website: https://www.vardhman.com

Number of Employees


Location

  • Vardhman Holdings Limited
  • Vardhman Premises
  • Chandigarh Road
  • Ludhiana
  • Punjab
  • 141010
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500439BSE (Mumbai Stock Exchange)YesEquity SharesININRJan 2002
VHLNSEI (National Stock Exchange of India)YesEquity SharesININRJan 2002

Biography

Vardhman Holdings Limited operates as a non-banking financial company in India. It is primarily involved in lending and investing activities. The company was formerly known as Vardhman Spinning and General ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/13 12:34
End of Day Share Price2019/11/11 00:00
Earnings2019/03/31
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.