Vardhman Acrylics Ltd. (VARDHACRLC) AI Stock Analysis

• Market Cap: ₹3.06B
• Dividend Yield: 4.02%
• Average Volume (3M): 42.64K
• Price to Earnings (P/E): 22.3
• Beta (1Y): 0.88
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 326
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.92
• Shares Outstanding: 80,363,750
• 10 Day Avg. Volume: 68,506
• 30 Day Avg. Volume: 42,638
• PEG Ratio: -0.87
• Price to Book (P/B): 1.40
• Price to Sales (P/S): 1.18
• P/FCF Ratio: 15.79
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: ₹38.00 ▼(-0.84% Downside)

The overall stock score for Vardhman Acrylics Ltd. is primarily influenced by its financial stability and low leverage, which are positive factors. However, the stock's technical indicators suggest a bearish trend, and the high P/E ratio indicates potential overvaluation. The lack of earnings call data and corporate events means these factors do not contribute to the score.

Positive Factors

Low leverage / strong balance sheet

A low debt-to-equity profile provides durable financial flexibility to withstand textile-cycle volatility, fund working capital and targeted capex without heavy interest burdens. This structural strength reduces default risk and supports long-term investment and strategic options.

Improving operating cash flow

Improving operating cash generation signals better cash conversion from core manufacturing operations, enabling consistent funding for replenishing inventories and modest reinvestment. Sustained OCF improvement underpins resilience through commodity cycles and supports strategic initiatives.

Focused product position in acrylic fiber

A clear focus on acrylic fiber for the textile value chain gives a durable market position tied to garments and yarn demand. Specialization supports operational know-how, customer relationships and scale benefits in a niche product, which helps sustain revenues when textile demand is stable.

Negative Factors

Inconsistent free cash flow

Uneven free cash flow limits the firm's ability to fund growth initiatives, pay sustained dividends or deleverage in downturns. Over multiple quarters this reduces strategic flexibility, increases reliance on external financing for capex, and can constrain long-term value creation.

Volatile revenue and declining margins

Declining revenues and compressing EBIT/EBITDA margins point to persistent operational pressures or weaker pricing power versus input costs. If sustained, this erodes ability to reinvest, weakens competitive positioning and increases vulnerability to raw material swings common in chemicals/textiles.

Declining stockholders' equity trend

A downward trend in equity may reflect accumulated losses, dividend drains or capital erosion, which can limit borrowing capacity and reduce investor confidence. Over time this constrains the balance sheet's ability to support expansion, M&A or absorb shocks in cyclical demand.

Vardhman Acrylics Ltd. Business Overview & Revenue Model

Company Description

Vardhman Acrylics Limited manufactures and supplies acrylic fibers and tows in India. Its products are used in apparels and house-hold products. The company provides its products under the VARLAN brand name. Vardhman Acrylics Limited was incorporated in 1990 and is based in Ludhiana, India. Vardhman Acrylics Limited is a subsidiary of Vardhman Textiles Limited.

How the Company Makes Money

The company generates revenue primarily through the sale of its acrylic fiber products. Vardhman Acrylics Ltd. supplies these fibers to textile manufacturers who use them for producing clothing and home textiles, among other products. The company's earnings are influenced by its ability to maintain strong relationships with key clients in the textile industry, ensuring consistent demand for its products. Additionally, Vardhman Acrylics Ltd. may engage in strategic partnerships and leverage the Vardhman Group's extensive network to expand its market reach and enhance its revenue streams.

Vardhman Acrylics Ltd. Financial Statement Overview

Summary

Vardhman Acrylics Ltd. demonstrates strengths in financial stability with a low leverage balance sheet. However, the income statement reveals challenges in maintaining consistent revenue and profitability margins. Cash flow performance is mixed, with improvements in operating cash flow but instability in free cash flow. The company needs to address operational inefficiencies and enhance its profitability margins to sustain long-term growth.

Income Statement

The company shows fluctuating revenue trends with a decline in recent years. Gross and net profit margins are inconsistent, indicating volatility in cost management and profitability. There is a noticeable decrease in EBIT and EBITDA margins, pointing to operational inefficiencies.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio, indicating financial stability and lower financial risk. The company maintains a strong equity ratio, reflecting a solid capital structure. However, a declining trend in stockholders' equity raises concerns about long-term growth potential.

Cash Flow

Operating cash flow shows improvement, but free cash flow has been inconsistent, impacting the company's ability to reinvest and distribute dividends. The operating cash flow to net income ratio is positive, suggesting decent cash conversion, although free cash flow growth is uneven.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.94B	2.82B	2.97B	4.26B	3.03B	2.80B
Gross Profit	828.70M	829.60M	993.60M	1.36B	687.55M	1.08B
EBITDA	161.10M	193.10M	272.67M	488.78M	232.36M	630.53M
Net Income	92.50M	118.30M	175.36M	328.58M	145.59M	429.17M
Balance Sheet
Total Assets	0.00	3.49B	3.28B	3.42B	3.02B	4.85B
Cash, Cash Equivalents and Short-Term Investments	1.25B	1.25B	821.69M	909.99M	818.51M	2.80B
Total Debt	0.00	1.80M	11.37M	3.39M	27.85M	3.59M
Total Liabilities	-2.39B	1.10B	848.30M	968.81M	900.44M	867.41M
Stockholders Equity	2.39B	2.39B	2.43B	2.45B	2.12B	3.98B
Cash Flow
Free Cash Flow	0.00	211.20M	43.56M	305.34M	-120.02M	389.48M
Operating Cash Flow	0.00	261.60M	76.04M	385.27M	-94.14M	394.57M
Investing Cash Flow	0.00	-90.80M	120.32M	-367.33M	1.90B	-825.75M
Financing Cash Flow	0.00	-170.90M	-195.03M	-26.03M	-1.98B	-11.04M

Vardhman Acrylics Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 38.32
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:VARDHACRLC, the sentiment is Positive. The current price of 38.32 is above the 20-day moving average (MA) of 37.10, above the 50-day MA of 37.74, and below the 200-day MA of 41.91, indicating a neutral trend. The MACD of -0.19 indicates Negative momentum. The RSI at 54.56 is Neutral, neither overbought nor oversold. The STOCH value of 54.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:VARDHACRLC.

Vardhman Acrylics Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PASUPTAC	74 Outperform	₹4.33B	11.00	―	―	36.99%	10.60%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
VARDHACRLC	56 Neutral	₹3.06B	22.25	―	4.02%	―	―
LORDSCHLO	53 Neutral	₹3.61B	15.45	―	―	39.31%	―
KANORICHEM	45 Neutral	₹3.11B	-4.77	―	―	-1.30%	-27.85%
DIAMINESQ	43 Neutral	₹2.42B	-48.96	―	0.38%	―	―

Vardhman Acrylics Ltd. Corporate Events

Vardhman Acrylics Posts Higher Income and Profit in Q3 FY2025-26

Vardhman Acrylics Ltd. reported its unaudited financial results for the quarter and nine months ended 31 December 2025, showing total income of ₹79.67 crore for the quarter and ₹245.95 crore for the nine-month period, both higher than the comparable period a year earlier. Quarterly profit before tax rose to ₹9.64 crore and net profit to ₹7.41 crore, contributing to nine‑month net profit of ₹11.66 crore, reflecting improved operational performance driven by higher revenues and better inventory and cost management; earnings per share for the nine months reached ₹1.45, signalling steady profitability for shareholders ahead of the full-year close.