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
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
It is not possible to calculate the future cash flow value for
Vardhman Special Steels. This is due to cash flow or dividend data being
unavailable. The share price is
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 Special Steels's
is considered below, and whether this is a fair price.
Price based on past earnings
Vardhman Special Steels's earnings available for a low price, and how does
this compare to other companies in the same industry?
Vardhman Special Steels's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
Vardhman Special Steels's revenue is expected to grow by 9.5% yearly, however this is not considered high growth (20% yearly).
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.
Vardhman Special Steels's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
Metals and Mining
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
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 Special Steels
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.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Vardhman Special Steels's finances.
The net worth of a company is the difference between its assets and liabilities.
Vardhman Special Steels is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Vardhman Special Steels's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Vardhman Special Steels'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
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 1.7x debt.
Nearly all companies have debt. Debt in itself isn’t
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.
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.
TENURE AS CEO
Mr. Sachit Jain, B.Tech., M.B.A. (Gold Medallist), has been the Vice Chairman and Managing Director of Vardhman Special Steels Limited since April 28, 2017 and March 15, 2011 respectively. Mr. Jain serves as the Compliance Officer of Vardhman Holdings Ltd. He was a Joint Managing Director at Vardhman Textiles Limited since August 07, 2014 until May 12, 2018. He served as the Managing Director of Vardhman Holdings Ltd. He has Business Executive experience for more than 15 years in Textile Industry. He serves as the Chairman of Vardhman Apparels Limited. He has been a Non-Executive Independent Director of Vardhman Holdings Ltd. since 1990. He has been a Director at Vardhman Special Steels Limited since March 15, 2011. Mr. Jain serves as a Director of VMT Spinning Company Limited, Vardhman Apparels Limited, Auro Fabriks Limited, Adinath Investment and Trading Company, Devakar Investment and Trading Company (P) Limited, Vardhman Textile Processors (P) Limited, Plaza Trading Company (P) Limited, Pradeep Mercantile Company (P) Limited, Anklesh Investments (P) Limited, Marshall Investment and Trading Company (P) Limited, Santon Finance and Investment Company Limited, Flamingo Finance and Investment Company Limited, Ramaniya Finance and Investment Company Limited., Srestha Holdings Limited, Syracuse Investment, Vardhman Holdings Limited and Trading Company (P) Limited and Vardhman Yarns & Threads Limited. He serves as an Executive Director of Vardhman Group. Mr. Jain has been a Non-Executive & Non-Independent Director at Vardhman Acrylics Ltd, since December 30, 1995. He serves as a Director of UTI Asset Management Company (P) Ltd. He has been Executive Director of Vardhman Textiles Limited since March 30, 2005. He served as the President of Northern India Textile Mills Association (NITMA) and was also the Chairman of Textile Sub-Committee of CII-Northern Region and also of CII-H.P. State Council. He served as an Additional Director of Maan Aluminium Ltd. from May 30, 2014 to November 14, 2014. He served as an Additional Director of Mahindra Punjab Tractors Private Limited from October 19, 2006 to May 10, 2007. He is also a Member of Indian Cotton Mills' Federation (ICMF). Mr. Jain is a Founder Member of BBN Industries Association. He holds Master in Business Administration (Gold Medalist) from IIM, Ahmedabad and an Electrical Engineer from IIT, Delhi. He has also studied Financial Management from Stanford, USA.
Sachit's compensation has increased by more than 20% in the past year.
Sachit's remuneration is higher than average for companies of similar size in India.
Management Team Tenure
Average tenure and age of the
Vardhman Special Steels
management team in years:
The average tenure for the Vardhman Special Steels management team is over 5 years, this suggests they are a seasoned and experienced team.
Vice Chairman & MD
Chief Financial Officer
Senior Vice President of Human Resources & Administration
Compliance Officer & Company Secretary
Vice President of Engineering Services
Vice President of Production & Technical
Senior General Manager of Projects & Technical
Board of Directors Tenure
Average tenure and age of the
Vardhman Special Steels
board of directors in years:
The tenure for the Vardhman Special Steels board of directors is about average.
Did Insiders Buy On Vardhman Special Steels Limited's (BOM:534392) Price Volatility?
Vardhman Special Steels Limited manufactures, sells, and exports special and alloy steel products in India. … some insider buying over the past three months, with insiders investing in. … It is widely considered that insider buying stock in their own companies is potentially a bullish signal
Vardhman Special Steels Limited manufactures, sells, and exports special and alloy steel products in India. Its products include billets, steel bars and rods, and bright bars of various categories of special and alloy steels. The company serves engineering, automotive, tractor, bearing, and allied industries. Vardhman Special Steels Limited was founded in 1973 and is headquartered in Ludhiana, India.
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