Vardhman Special Steels Limited (VSSL) AI Stock Analysis

• Market Cap: ₹24.50B
• Dividend Yield: 0.8%
• Average Volume (3M): 5.71K
• Price to Earnings (P/E): 23.8
• Beta (1Y): 0.99
• Revenue Growth: 6.99%
• EPS Growth: -12.54%
• Country: IN
• Employees: 1,247
• Sector: Basic Materials
• Sector Strength: 73
• Industry: Steel
• EPS (TTM): 2.43
• Shares Outstanding: 96,503,426
• 10 Day Avg. Volume: 4,587
• 30 Day Avg. Volume: 5,713
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹217.00
• Price Target Upside: -15.78% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 68 Neutral
• Price Target: ₹276.00 ▲(7.12% Upside)

Vardhman Special Steels Limited has a solid financial foundation with strong revenue growth and a robust equity base. However, recent declines in profitability margins and negative free cash flow highlight areas for improvement. The technical indicators suggest a neutral to slightly bearish trend, and the valuation metrics indicate moderate pricing with limited dividend yield. These factors collectively result in a moderate overall stock score.

Vardhman Special Steels Limited Business Overview & Revenue Model

Company Description

Vardhman Special Steels Limited (VSSL) is a leading manufacturer of special and alloy steels in India, catering to diverse sectors including automotive, engineering, and aerospace. The company specializes in producing high-quality steel products such as billets, bars, and rods, which are used in critical applications requiring superior strength and durability.

How the Company Makes Money

VSSL generates revenue primarily through the sale of its special and alloy steel products to various industries, with a significant focus on the automotive sector. The company's key revenue streams include the direct sale of steel products to original equipment manufacturers (OEMs) and component manufacturers. VSSL also benefits from strategic partnerships and long-term contracts with major industry players, which help ensure a steady demand for its products. Additionally, the company's commitment to innovation and quality allows it to charge premium prices for its specialized products, further contributing to its earnings.

Vardhman Special Steels Limited Financial Statement Overview

Summary

Vardhman Special Steels Limited shows strong revenue growth and financial stability with a solid equity base. However, recent declines in EBIT and EBITDA margins, along with negative free cash flow, suggest areas for operational enhancement.

Income Statement

Vardhman Special Steels Limited has demonstrated strong revenue growth, with significant improvements over the years, particularly from 2020 to 2025. The gross profit margin remains healthy, indicating effective cost management. However, there was a noticeable dip in both EBIT and EBITDA margins in 2025 compared to previous years, suggesting increased operational costs or reduced efficiency.

Balance Sheet

The company maintains a solid debt-to-equity ratio, reflecting prudent financial management with a consistent reduction in debt over time. The equity ratio is robust, showcasing strong equity financing. However, the return on equity has seen some fluctuations, primarily due to varying net income levels.

Cash Flow

Operating cash flow has shown variability, peaking in 2024 but facing a reduction in 2025. Free cash flow was negative in 2025, raising potential concerns about liquidity and capital expenditure efficiency. The operating cash flow to net income ratio indicates that cash generation relative to net income needs improvement.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	13.38B	17.64B	16.61B	17.35B	13.68B	9.37B
Gross Profit	3.76B	5.04B	6.22B	6.26B	2.17B	2.24B
EBITDA	1.35B	1.77B	1.71B	1.80B	2.03B	1.15B
Net Income	716.31M	930.88M	916.28M	1.00B	1.01B	441.95M
Balance Sheet
Total Assets	11.36B	11.36B	10.40B	10.31B	9.21B	8.03B
Cash, Cash Equivalents and Short-Term Investments	213.25M	213.25M	76.40M	295.38M	313.51M	523.40M
Total Debt	1.20B	1.20B	837.06M	1.44B	1.62B	1.91B
Total Liabilities	3.38B	3.38B	3.20B	3.88B	3.66B	3.43B
Stockholders Equity	7.98B	7.98B	7.19B	6.42B	5.55B	4.59B
Cash Flow
Free Cash Flow	0.00	-87.44M	744.43M	447.87M	235.80M	777.55M
Operating Cash Flow	0.00	1.10B	1.42B	735.75M	588.80M	872.39M
Investing Cash Flow	0.00	-1.27B	-501.43M	-148.35M	-91.12M	67.96M
Financing Cash Flow	0.00	30.32M	-941.58M	-494.77M	-518.37M	-939.98M

Vardhman Special Steels Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 257.65
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:VSSL, the sentiment is Positive. The current price of 257.65 is above the 20-day moving average (MA) of 256.22, below the 50-day MA of 258.60, and above the 200-day MA of 240.67, indicating a neutral trend. The MACD of -1.50 indicates Negative momentum. The RSI at 51.33 is Neutral, neither overbought nor oversold. The STOCH value of 68.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:VSSL.

Vardhman Special Steels Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NITINSPIN	70 Outperform	₹19.54B	11.21		0.88%	6.61%	20.42%
VSSL	68 Neutral	₹24.50B	23.83		0.80%	6.99%	-12.54%
STEELCAS	67 Neutral	₹21.32B	26.94		1.15%	10.11%	16.99%
Sector *	61 Neutral	$10.24B	6.18	0.71%	2.90%	3.45%	-36.02%
IPL	61 Neutral	₹24.40B	24.75		0.35%	26.32%	54.09%
MSPL	58 Neutral	₹17.28B	58.19		―	-4.39%	-160.87%
MADRASFERT	55 Neutral	₹14.00B	21.03		―	13.28%	-15.77%

Vardhman Special Steels Limited Corporate Events

Vardhman Special Steels Announces Q4 & FY25 Earnings Call

Vardhman Special Steels Limited has announced an upcoming Earnings Conference Call organized by Choice Broking to discuss the company’s operational and financial performance for Q4 and FY25. This event, scheduled for April 23, 2025, will provide insights into the company’s recent performance and strategic direction, potentially impacting its market positioning and stakeholder interests.