Vardhman Polytex Ltd (VARDMNPOLY) AI Stock Analysis

• Market Cap: ₹2.48B
• Dividend Yield: N/A
• Average Volume (3M): 39.38K
• Price to Earnings (P/E): 6.2
• Beta (1Y): 1.27
• Revenue Growth: 5.66%
• EPS Growth: N/A
• Country: IN
• Employees: 974
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Apparel - Manufacturers
• EPS (TTM): 0.14
• Shares Outstanding: 458,894,000
• 10 Day Avg. Volume: 51,608
• 30 Day Avg. Volume: 39,383
• PEG Ratio: -0.15
• Price to Book (P/B): -1.39
• Price to Sales (P/S): 1.11
• P/FCF Ratio: -2.82
• 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: 44 Neutral
• Price Target: ₹7.00 ▲(22.59% Upside)

The overall stock score reflects significant financial challenges and bearish technical indicators. While the stock appears undervalued based on its P/E ratio, the lack of dividend yield and financial instability weigh heavily on the score. The absence of earnings call insights and corporate events further limits positive influences.

Positive Factors

Strategic Partnerships

Strategic partnerships enhance market reach and drive sales growth, providing a competitive edge in the global textile industry.

Focus on Quality and Innovation

Commitment to quality and innovation strengthens market position and attracts a diverse clientele, supporting long-term profitability.

Export Market Presence

A strong export market presence diversifies revenue streams and reduces dependency on domestic markets, enhancing business resilience.

Negative Factors

High Leverage

High leverage and negative equity indicate financial instability, increasing risk and limiting financial flexibility for future growth.

Revenue Contraction

Ongoing revenue contraction suggests challenges in market demand or competitiveness, impacting long-term financial health.

Cash Flow Difficulties

Reliance on external financing due to cash flow difficulties can strain operations and hinder the company's ability to invest in growth opportunities.

Vardhman Polytex Ltd Business Overview & Revenue Model

Company Description

Vardhman Polytex Limited, through its subsidiaries, manufactures and sells yarns and garments in India and internationally. The company provides carded, combed, organic, and BCI cotton yarns; cotton polyester yarns; and grey and dyed value added yarns. The company was incorporated in 1980 and is based in Ludhiana, India.

How the Company Makes Money

Vardhman Polytex generates revenue primarily through the sale of its synthetic and blended yarn products to domestic and international markets. The company has established a diversified customer base, including textile manufacturers and garment exporters, which provides a steady demand for its products. Key revenue streams include bulk sales to large textile industries, as well as smaller orders from regional customers. Additionally, Vardhman Polytex may benefit from strategic partnerships with other firms in the textile supply chain, enabling it to expand its market reach and enhance its product offerings. Factors such as competitive pricing, product quality, and customer service play crucial roles in driving the company's earnings.

Vardhman Polytex Ltd Financial Statement Overview

Summary

Vardhman Polytex Ltd faces substantial financial challenges with significant revenue contraction and profitability issues. The balance sheet shows high leverage with negative equity, and cash flow difficulties are evident, relying heavily on external financing. Recent improvements are overshadowed by historical instability.

Income Statement

Vardhman Polytex Ltd has experienced significant volatility in revenue and margins. The company showed a sharp decline in total revenue over the past years, with a large drop from 2022 to 2025. The gross profit margin and net profit margin have been highly inconsistent, signaling instability. Recent improvements in net income for 2025 are positive but remain overshadowed by historical losses.

Balance Sheet

The balance sheet reveals a precarious financial situation with negative stockholders' equity and a high debt-to-equity ratio, indicating over-leverage. Although total liabilities have decreased, they still exceed total assets, which is a concern. The equity ratio is negative, highlighting financial instability and risk.

Cash Flow

Cash flow metrics indicate a significant decline in operating cash flow and negative free cash flow over the recent periods. The operating cash flow to net income ratio is unfavorable, with the company struggling to generate sufficient cash from operations. Financing cash flow has been positive in recent years, suggesting reliance on external financing.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.80B	2.85B	3.71B	6.16B	9.29B	5.09B
Gross Profit	700.63M	183.47M	407.05M	773.57M	2.31B	1.30B
EBITDA	473.75M	379.85M	-129.24M	670.92M	622.81M	170.40M
Net Income	258.72M	149.24M	-267.60M	14.91M	-155.56M	-566.97M
Balance Sheet
Total Assets	0.00	2.76B	2.76B	2.91B	3.26B	3.05B
Cash, Cash Equivalents and Short-Term Investments	3.81M	4.37M	10.87M	3.51M	1.11M	1.31M
Total Debt	0.00	496.52M	761.90M	4.47B	5.29B	5.23B
Total Liabilities	2.27B	5.03B	6.37B	6.54B	6.90B	6.54B
Stockholders Equity	-2.27B	-2.27B	-3.61B	-3.62B	-3.64B	-3.48B
Cash Flow
Free Cash Flow	0.00	-1.12B	-139.56M	390.85M	594.57M	222.56M
Operating Cash Flow	0.00	-1.08B	-137.83M	403.01M	614.65M	240.34M
Investing Cash Flow	0.00	259.44M	262.88M	-6.48M	-6.46M	-12.25M
Financing Cash Flow	0.00	810.36M	-118.31M	-393.63M	-607.63M	-228.61M

Vardhman Polytex Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.71
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:VARDMNPOLY, the sentiment is Negative. The current price of 5.71 is below the 20-day moving average (MA) of 6.03, below the 50-day MA of 6.51, and below the 200-day MA of 9.42, indicating a bearish trend. The MACD of -0.31 indicates Positive momentum. The RSI at 24.03 is Positive, neither overbought nor oversold. The STOCH value of 13.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:VARDMNPOLY.

Vardhman Polytex Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RSWM	64 Neutral	₹6.39B	80.06	―	―	5.54%	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
BANSWRAS	60 Neutral	₹3.56B	15.93	―	0.88%	5.59%	-5.44%
KOTHARIPRO	54 Neutral	₹4.18B	9.59	―	―	-3.96%	―
VARDMNPOLY	44 Neutral	₹2.48B	6.23	―	―	5.66%	―
ASHIMASYN	41 Neutral	₹3.30B	-18.07	―	―	-95.41%	-121.35%