Vardhman Holdings Limited (VHL) AI Stock Analysis

• Market Cap: ₹10.39B
• Dividend Yield: 0.14%
• Average Volume (3M): 106.00
• Price to Earnings (P/E): 5.3
• Beta (1Y): 1.59
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 3
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Financial - Credit Services
• EPS (TTM): 168.29
• Shares Outstanding: 3,191,536
• 10 Day Avg. Volume: 70
• 30 Day Avg. Volume: 106
• PEG Ratio: 0.11
• Price to Book (P/B): 0.32
• Price to Sales (P/S): 84.33
• P/FCF Ratio: -202.56
• 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: 65 Neutral
• Price Target: ₹3,357.00 ▼(-6.89% Downside)
• Action: N/A Date: 01/04/26
• Date: Action: N/A 01/04/26

The score is primarily supported by a very conservative balance sheet and attractive valuation (low P/E and high dividend yield). These positives are tempered by weak cash-flow conversion and volatile revenue, while technicals remain soft with the stock below key longer-term moving averages and negative MACD.

Positive Factors

Conservative balance sheet

A near zero-debt capital structure materially reduces financial risk, lowering default and refinancing exposure. That balance-sheet conservatism supports resilience through cycles, better credit optionality for opportunistic investments, and longer-term strategic flexibility.

Consistent reported profitability

Sustained positive net income and healthy net margins indicate recurring earnings power from core investment and financing activities. Even with revenue swings, persistent profitability implies structural ability to generate shareholder returns and cover dividends or strategic reinvestment.

Stable investment-holding business model

A focused holding-company model centered on dividends, interest and long-term stakes provides durable cash-flow sources independent of transactional sales cycles. This structural model supports steady recurring income and strategic portfolio management over medium term horizons.

Negative Factors

Weak cash conversion

Persistent negative operating and free cash flow undermines the quality of reported earnings and constrains internal funding for dividends, buybacks, or investments. Over months this limits capital allocation flexibility and raises reliance on non‑operational cash or asset sales.

Volatile and recently declining revenue

Sharp, recurring swings in revenue reduce predictability of dividend streams and investment income. A structural downturn or ongoing volatility in investee payouts can erode earnings sustainability and complicate multi‑period planning for reinvestment or shareholder distributions.

Very small operating scale / low liquidity

Extremely limited headcount and very low trading volume signal constrained operational capacity and potential governance/operational concentration. Small scale can restrict deal execution, risk management and limits external investor access or institutional coverage over the medium term.

Vardhman Holdings Limited Business Overview & Revenue Model

Company Description

Vardhman Holdings Limited operates as a non-banking financial company in India. It primarily engages in the lending and investing activities. The company was formerly known as Vardhman Spinning and General Mills Limited and changed its name to Vardhman Holdings Limited in March 2006. Vardhman Holdings Limited was incorporated in 1962 and is based in Ludhiana, India.

How the Company Makes Money

Vardhman Holdings Limited Financial Statement Overview

Summary

Strong balance sheet with essentially no debt and consistently positive reported earnings, but this is offset by persistently negative operating/free cash flow and volatile (recently sharply weaker) revenue, raising concerns about earnings quality and durability.

Income Statement

Profitability is a clear strength: net income is consistently strong across years and net margin remains healthy (roughly ~9% to ~29%), with FY2025 also showing unusually high gross margin. However, the revenue line is volatile and recently weak (FY2025 shows a very large revenue decline), and operating profitability appears thin/uneven based on the low EBIT/EBITDA margins reported in several years. Overall, earnings power looks solid but the quality/consistency of revenue and operating margin trajectory is a key concern.

Balance Sheet

The balance sheet is very conservative with essentially no debt across the period, which materially lowers financial risk. Equity and total assets trend upward over time, supporting balance sheet resilience. Return on equity is moderate overall (mid-single digits in several years, with a higher year in FY2021), suggesting solid but not consistently high efficiency in generating profits from shareholder capital.

Cash Flow

Cash generation is the weakest area: operating cash flow is negative in most years shown (including FY2024 and FY2025), and free cash flow is also frequently negative, indicating limited cash conversion despite reported profitability. There are occasional positive periods (notably FY2021), but the overall pattern suggests volatile and often weak cash realization, which can constrain flexibility even with a strong balance sheet.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	169.74M	132.34M	84.78M	244.13M	140.99M	136.72M
Gross Profit	164.91M	126.11M	79.94M	231.65M	132.35M	130.23M
EBITDA	180.43M	202.70M	134.39M	33.41M	309.90M	187.62M
Net Income	2.47B	2.58B	1.85B	2.28B	4.29B	1.30B
Balance Sheet
Total Assets	0.00	35.41B	32.98B	31.01B	27.78B	23.07B
Cash, Cash Equivalents and Short-Term Investments	15.20M	1.19B	816.30M	624.52M	2.12B	1.15B
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	-35.40B	5.29M	5.98M	10.99M	6.75M	15.46M
Stockholders Equity	35.40B	35.40B	32.97B	31.00B	27.77B	23.06B
Cash Flow
Free Cash Flow	0.00	-55.10M	-28.91M	-2.87M	-35.96M	821.43M
Operating Cash Flow	0.00	-55.10M	-28.91M	12.85M	-35.96M	821.43M
Investing Cash Flow	0.00	47.60M	43.93M	20.48M	-685.74M	-104.19M
Financing Cash Flow	0.00	-16.10M	-16.02M	-15.95M	-15.96M	-231.00K

Vardhman Holdings Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BUTTERFLY	66 Neutral	₹10.70B	26.88	―	―	7.32%	―
VHL	65 Neutral	₹10.39B	5.33	―	0.14%	―	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
BCLIND	60 Neutral	₹8.18B	7.51	―	0.81%	14.16%	-4.42%
ICEMAKE	58 Neutral	₹13.23B	216.68	―	0.28%	33.81%	-39.04%
KOKUYOCMLN	49 Neutral	₹7.86B	57.19	―	0.55%	-3.15%	-15.95%

Vardhman Holdings Limited Corporate Events

Vardhman Holdings Publishes December Quarter Results in Newspapers

Vardhman Holdings Limited notified the stock exchanges that it has published its financial results for the quarter and nine months ended 31 December 2025 in the newspapers Desh Sewak and Financial Express in line with securities listing regulations. The disclosure reinforces the company’s compliance with disclosure norms, ensuring that shareholders and market participants have public access to its latest financial performance and regulatory filings.

Although the notice itself does not detail the numbers, the newspaper publication of results serves as an official confirmation that the company has completed its quarterly reporting cycle. This step supports transparency in the market, helps investors track the company’s operational trajectory, and underpins regulatory confidence in its adherence to SEBI’s reporting framework.