Vardhman Polytex Ltd (IN:VARDMNPOLY)
:VARDMNPOLY
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Vardhman Polytex Ltd
(VARDMNPOLY)
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Rating:41Neutral
Price Target:
₹6.00
▲(5.08% Upside)
Action:Reiterated
Date:05/30/26
The score is held down primarily by weak financial fundamentals—deeply negative equity and sharply negative recent operating/free cash flow—despite a return to accounting profitability. Technicals add pressure with a clear downtrend below key moving averages and negative MACD. Valuation offers limited offset given the high P/E and no dividend yield support.
Positive Factors
Return to profitability
Re-establishing accounting profitability after losses signals that core operations can generate positive net income under current structure. Over a 2–6 month horizon this improves creditor and supplier confidence, aids incremental access to working capital, and provides a foundation to stabilize margins if revenue trends stop deteriorating.
Negative Factors
Deeply negative equity
Persistently negative shareholders' equity reflects accumulated losses and a stressed capital structure, constraining the firm's ability to absorb shocks. Over months this impairs financing options, limits strategic investments, and increases default risk if cash flows do not materially improve.
Read all positive and negative factors
Positive Factors
Negative Factors
Return to profitability
Re-establishing accounting profitability after losses signals that core operations can generate positive net income under current structure. Over a 2–6 month horizon this improves creditor and supplier confidence, aids incremental access to working capital, and provides a foundation to stabilize margins if revenue trends stop deteriorating.
Read all positive factors
Vardhman Polytex Ltd (VARDMNPOLY) vs. iShares MSCI India ETF (INDA)
Market Cap
₹3.32B
Dividend YieldN/A
Average Volume (3M)39.38K
Price to Earnings (P/E)40.2
Beta (1Y)1.41
Revenue Growth-16.94%
EPS GrowthN/A
CountryIN
Employees974
SectorConsumer Defensive
Sector Strength42
IndustryApparel - Manufacturers
Share Statistics
EPS (TTM)0.85
Shares Outstanding483,019,000
10 Day Avg. Volume51,608
30 Day Avg. Volume39,383
Financial Highlights & Ratios
PEG Ratio-0.64
Price to Book (P/B)-1.48
Price to Sales (P/S)1.24
P/FCF Ratio-5.63
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 y...
How the Company Makes Money
Vardhman Polytex Ltd makes money primarily by manufacturing and selling textile products (e.g., yarn and other textile materials) to downstream customers such as fabric manufacturers, garment makers, and traders. Revenue is generally generated thr...
Vardhman Polytex Ltd Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
12
Very Negative
Cash Flow
22
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.78B | 2.37B | 2.85B | 3.71B | 6.16B | 9.29B |
| Gross Profit | 685.24M | 189.93M | 183.47M | 407.05M | 773.57M | 2.31B |
| EBITDA | 543.03M | 142.14M | 379.85M | -129.24M | 670.92M | 622.81M |
| Net Income | 317.02M | 76.81M | 149.24M | -267.60M | 14.91M | -155.56M |
Balance Sheet | ||||||
| Total Assets | 2.86B | 2.83B | 2.76B | 2.76B | 2.91B | 3.26B |
| Cash, Cash Equivalents and Short-Term Investments | 4.42M | 2.82M | 4.37M | 10.87M | 3.51M | 1.11M |
| Total Debt | 486.52M | 551.23M | 496.52M | 761.90M | 4.47B | 5.29B |
| Total Liabilities | 5.07B | 4.80B | 5.03B | 6.37B | 6.54B | 6.90B |
| Stockholders Equity | -2.21B | -1.97B | -2.27B | -3.61B | -3.62B | -3.64B |
Cash Flow | ||||||
| Free Cash Flow | -185.56M | -518.92M | -1.12B | -139.56M | 390.85M | 594.57M |
| Operating Cash Flow | -59.17M | -392.19M | -1.08B | -137.83M | 403.01M | 614.65M |
| Investing Cash Flow | 148.88M | 200.84M | 259.44M | 262.88M | -6.48M | -6.46M |
| Financing Cash Flow | -89.66M | 189.81M | 810.36M | -118.31M | -393.63M | -607.63M |
Vardhman Polytex Ltd Technical Analysis
Positive
5.71
Price Trends
7.01
Negative
6.98
Positive
7.43
Negative
Market Momentum
-0.11
Negative
57.81
Neutral
81.57
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:VARDMNPOLY, the sentiment is Positive. The current price of 5.71 is below the 20-day moving average (MA) of 6.61, below the 50-day MA of 7.01, and below the 200-day MA of 7.43, indicating a neutral trend. The MACD of -0.11 indicates Negative momentum. The RSI at 57.81 is Neutral, neither overbought nor oversold. The STOCH value of 81.57 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:VARDMNPOLY.
Vardhman Polytex Ltd Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | ₹3.78B | 9.86 | ― | ― | -1.36% | 784.46% | |
71 Outperform | ₹3.54B | 12.75 | ― | 4.02% | 13.14% | 130.36% | |
63 Neutral | ₹3.57B | 10.54 | ― | ― | -19.03% | 0.65% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
57 Neutral | ₹4.26B | 13.41 | ― | 0.88% | 4.93% | 40.89% | |
45 Neutral | ₹3.50B | 34.23 | ― | ― | 752.27% | -85.81% | |
41 Neutral | ₹3.32B | 40.16 | ― | ― | -16.94% | ― |
* Consumer Defensive Sector Average
IN:VARDMNPOLY
Vardhman Polytex Ltd
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Vardhman Polytex Ltd Corporate Events
Vardhman Polytex Clears Phoenix ARC Dues, Set to Write Back Rs.300 Crore
Apr 8, 2026
Vardhman Polytex Limited has fully repaid and settled all outstanding dues owed to Phoenix ARC Private Limited, using proceeds from recently issued non-convertible debentures. This clears a long-standing default that had been reported quarterly to...
Vardhman Polytex boosts equity capital with conversion of promoter warrants
Mar 25, 2026
Vardhman Polytex Ltd has approved the allotment of 7.5 million equity shares following the conversion of an equal number of preferential warrants issued earlier to an entity in the promoter group at a price of Rs 12.55 per share. The conversion, b...
Vardhman Polytex boosts equity capital with conversion of preferential warrants
Mar 25, 2026
Vardhman Polytex Ltd has approved the allotment of 7.5 million equity shares of Re. 1 each at a price of Rs. 12.55 per share on conversion of an equal number of warrants issued on a preferential basis to a promoter group entity. Following the rece...
Vardhman Polytex Publishes Postal Ballot Notice in Leading Dailies
Mar 23, 2026
Vardhman Polytex Ltd has notified the stock exchanges that it has published a postal ballot notice in leading newspapers, including Financial Express (English) and Desh Sewak (Punjabi), dated March 21, 2026. The disclosure, made under SEBI’s...
Vardhman Polytex boosts equity capital via promoter warrant conversion
Mar 23, 2026
Vardhman Polytex Ltd has approved the conversion of 6.5 million preferential warrants into an equal number of fully paid equity shares of face value Re 1 each at an issue price of Rs 12.55 per share. The warrants, originally issued to a promoter g...
Vardhman Polytex Calls EGM to Approve ₹120 Crore Debenture Issue
Mar 23, 2026
Vardhman Polytex Limited has called an Extraordinary General Meeting for April 16, 2026, at its Ludhiana registered office, with a record date of April 9, 2026 set to determine shareholder eligibility for remote e-voting and on-site voting. The me...
Vardhman Polytex Rating Withdrawn by ICRA at Company’s Request
Mar 16, 2026
Vardhman Polytex Ltd has announced that credit rating agency ICRA has withdrawn the rating previously assigned to the company’s borrowing facilities, following a request from the company and the issuance of a no-objection certificate by its ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.