Vardhman Holdings Limited (VHL) AI Stock Analysis

• Market Cap: ₹9.96B
• Dividend Yield: 0.14%
• Average Volume (3M): 106.00
• Price to Earnings (P/E): 5.3
• Beta (1Y): 1.61
• 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: ₹3,371.00 ▼(-6.50% 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 profile materially reduces financial risk and interest burden, giving the company durable resilience through cycles. This conservatism supports capital allocation flexibility, preserves borrowing optionality, and lowers default risk over the next several quarters.

Consistent net profitability

Sustained positive net income and healthy net margins (roughly mid-single to high single digits up to higher years) indicate underlying earnings power. Over 2-6 months this supports dividend capacity and strategic reinvestment even if top-line fluctuates.

Investment-holding, asset-light model

An asset-light holding and treasury model lowers capex needs and enables portfolio reallocation. Durable structural benefits include diversified income streams (dividends, interest, capital gains) and agility to shift exposures without heavy operational burden.

Negative Factors

Weak cash generation

Persistent negative operating and free cash flow undermines the convertibility of reported profits into spendable cash. Over months this can constrain dividends, portfolio funding, or opportunistic buys, forcing reliance on asset sales or accounting gains to meet cash needs.

Volatile, sharply declining revenue

A large recent revenue decline and uneven top-line history signal unstable core income generation from holdings and financing. This volatility weakens predictability of future earnings and cash receipts, complicating budgeting and long-term payout planning.

Earnings quality concerns

Reported profitability appears at odds with cash trends and volatile revenue, implying non-cash gains or timing effects drive net income. Over a multi-month horizon this raises sustainability questions and increases risk that earnings may reverse or fail to support cash returns.

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	₹9.96B	5.33	―	0.14%	―	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
BCLIND	60 Neutral	₹8.20B	7.51	―	0.81%	14.16%	-4.42%
ICEMAKE	58 Neutral	₹13.02B	216.68	―	0.28%	33.81%	-39.04%
KOKUYOCMLN	49 Neutral	₹7.95B	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.