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Vardhman Textiles Ltd logo

Vardhman Textiles Ltd

NSE: VTL BSE: 502986

510.10

(11.56)%

Tue, 03 Feb 2026, 08:38 am

Analysis

dividend

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Pros

  • Dividends per share have increased over the past 10 years.
  • Dividends paid are well covered by earnings (6.2x coverage).
  • Dividends after 3 years are expected to be well covered by earnings (4.5x coverage).
  • Dividends per share have been stable in the past 10 years.
  • Vardhman Textiles's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
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Cons

  • Vardhman Textiles's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

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Pros

  • Performance (ROE) is expected to be above the current IN Luxury industry average.
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Cons

  • Cash flow for Vardhman Textiles is expected to increase but not above the 50% threshold in 2 years time.
  • Vardhman Textiles's earnings are expected to grow by 4.1% yearly, however this is not considered high growth (20% yearly).
  • Vardhman Textiles's earnings growth is positive but not above the India market average.
  • Vardhman Textiles's earnings growth is positive but not above the low risk savings rate of 7.2%.
  • Vardhman Textiles's earnings are expected to decrease over the next year.
  • Vardhman Textiles's net income is expected to decrease over the next 2 years.
  • Vardhman Textiles is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
  • A decline in Vardhman Textiles's performance (ROE) is expected over the next 3 years.
  • Vardhman Textiles's revenue is expected to decrease over the next 2 years.
  • Vardhman Textiles's revenue is expected to grow by 1.2% yearly, however this is not considered high growth (20% yearly).
  • Vardhman Textiles's revenue growth is positive but not above the India market average.

health

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Pros

  • Vardhman Textiles is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Vardhman Textiles is profitable, therefore cash runway is not a concern.
  • Vardhman Textiles is profitable, therefore cash runway is not a concern.
  • Debt is well covered by operating cash flow (50.1%, greater than 20% of total debt).
  • Debt is covered by short term assets, assets are 3x debt.
  • Vardhman Textiles's cash and other short term assets cover its long term commitments.
  • The level of debt compared to net worth has been reduced over the past 5 years (75.2% vs 25.4% today).
  • Interest payments on debt are well covered by earnings (EBIT is 7.5x coverage).
  • Vardhman Textiles's level of debt (25.4%) compared to net worth is satisfactory (less than 40%).
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Cons

  • High level of physical assets or inventory.

management

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Pros

  • The average tenure for the Vardhman Textiles board of directors is over 10 years, this suggests they are a seasoned and experienced board.
  • The tenure for the Vardhman Textiles management team is about average.
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Cons

  • Shri's remuneration is higher than average for companies of similar size in India.
  • Shri's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.
  • Vardhman Textiles individual insiders have only sold shares in the past 3 months.

misc

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Pros

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    Cons

    • Vardhman Textiles has significant price volatility in the past 3 months.

    past

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    Pros

    • Vardhman Textiles's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
    • Vardhman Textiles used its assets more efficiently than the IN Luxury industry average last year based on Return on Assets.
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    Cons

    • Vardhman Textiles's 1-year earnings growth is negative, it can't be compared to the 5-year average.
    • Vardhman Textiles's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
    • Vardhman Textiles has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
    • Vardhman Textiles's 1-year earnings growth is negative, it can't be compared to the IN Luxury industry average.

    value

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    Pros

    • Vardhman Textiles is good value based on earnings compared to the IN Luxury industry average.
    • Vardhman Textiles is good value based on earnings compared to the India market.
    • BSE:502986 is up 8.1% along with the India market (8%) over the past month.
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    Cons

    • Vardhman Textiles's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
    • Vardhman Textiles's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
    • Vardhman Textiles is overvalued based on assets compared to the IN Luxury industry average.
    • Vardhman Textiles is poor value based on expected growth next year.
    • 502986 underperformed the Luxury industry which returned -22.1% over the past year.
    • 502986 underperformed the Market in India which returned -14.5% over the past year.
    • BSE:502986 is up 8.1% underperforming the Luxury industry which returned 9.8% over the past month.

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