Vardhman Polytex Ltd (VARDMNPOLY) AI Stock Analysis

• Market Cap: ₹3.29B
• Dividend Yield: N/A
• Average Volume (3M): 39.38K
• Price to Earnings (P/E): 46.6
• Beta (1Y): 1.41
• Revenue Growth: 5.66%
• EPS Growth: N/A
• Country: IN
• Employees: 974
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Apparel - Manufacturers
• EPS (TTM): <0.01
• 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: 46 Neutral
• Price Target: ₹8.50 ▲(48.86% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is held down primarily by weak financial performance (negative equity, revenue contraction, and poor cash generation). Technical indicators show improved short-term momentum, but overbought signals add risk. Valuation is also a headwind due to a high P/E and no dividend yield support.

Positive Factors

Group affiliation

Being part of the Vardhman group provides durable structural benefits: shared brand recognition, potential access to group procurement, distribution networks and operational expertise. These resources can lower costs, support recovery plans and improve competitiveness over multiple quarters.

Net income improvement

Reported net income improvement in 2025 signals that operating performance may be stabilizing after earlier losses. If sustained, this supports margin recovery, restores internal financing capacity and enables longer-term strategic investment rather than continual reliance on external support.

Access to capital

Consistent positive financing cash flows demonstrate the company’s ability to raise capital when needed. That access creates a practical runway for restructuring, working capital and capex, enabling longer-term turnaround efforts despite weak operating cash generation.

Negative Factors

Negative equity

Negative shareholders' equity and high leverage materially weaken the capital buffer, constrain credit access and increase solvency risk. Over months this reduces flexibility to absorb shocks, limits investment capacity and raises probability of needing capital restructuring or dilution.

Poor cash generation

Declining operating cash flow and negative free cash flow indicate the core business is not self-funding. Over a multi-month horizon this forces continued external financing, increases refinancing risk if market conditions tighten, and limits capacity for sustained margin-recovering investments.

Revenue decline & margin volatility

A sharp revenue contraction and highly inconsistent gross and net margins signal unstable demand or pricing power. Persisting over quarters, this undermines forecastability, hampers scale economics, and makes margin recovery and long-term profitability more uncertain.

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

Weak overall financial health: revenue and margins have been highly volatile with a sharp revenue decline over recent years, the balance sheet shows negative stockholders’ equity with liabilities exceeding assets, and cash flows include declining operating cash flow and negative free cash flow, implying reliance on external financing.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 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: Positive
• Last Price: 5.71
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 7.18, below the 50-day MA of 6.48, and below the 200-day MA of 8.77, indicating a neutral trend. The MACD of 0.44 indicates Negative momentum. The RSI at 70.20 is Negative, neither overbought nor oversold. The STOCH value of 63.23 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RSWM	66 Neutral	₹7.00B	35.43	―	―	5.54%	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
BANSWRAS	62 Neutral	₹3.77B	14.73	―	0.88%	5.59%	-5.44%
KOTHARIPRO	54 Neutral	₹4.03B	9.57	―	―	-3.96%	―
VARDMNPOLY	46 Neutral	₹3.29B	46.58	―	―	5.66%	―
ASHIMASYN	41 Neutral	₹2.89B	-29.03	―	―	-95.41%	-121.35%