Vardhman Special Steels Limited (VSSL) AI Stock Analysis

• Market Cap: ₹26.82B
• Dividend Yield: 1.1%
• Average Volume (3M): 10.78K
• Price to Earnings (P/E): 26.1
• Beta (1Y): 0.98
• Revenue Growth: 6.99%
• EPS Growth: -12.58%
• Country: IN
• Employees: 1,247
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Steel
• EPS (TTM): 2.43
• Shares Outstanding: 96,503,426
• 10 Day Avg. Volume: 4,806
• 30 Day Avg. Volume: 10,775
• PEG Ratio: 14.52
• Price to Book (P/B): 2.11
• Price to Sales (P/S): 0.95
• P/FCF Ratio: -192.18
• 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: ₹158.00
• Price Target Upside: -43.15% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• Price Target: ₹276.00 ▼(-0.68% Downside)

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 prominent player in the Indian steel industry, specializing in the manufacture of a diverse range of high-quality steel products. The company operates across various sectors, including automotive, engineering, and construction, providing products such as alloy steels, carbon steels, and specialty steels. With a focus on innovation and sustainability, VSSL aims to meet the evolving demands of its customers while adhering to the highest industry standards.

How the Company Makes Money

Vardhman Special Steels Limited generates revenue through the production and sale of its specialized steel products, catering to both domestic and international markets. The company's primary revenue streams include direct sales to manufacturers in sectors such as automotive and engineering, where high-performance steel is essential. Additionally, VSSL benefits from long-term contracts and partnerships with key industry players, ensuring a steady demand for its products. The company also invests in research and development to create innovative steel solutions, enabling it to capture niche markets and enhance its profitability. Overall, VSSL's focus on quality, customer satisfaction, and strategic partnerships significantly contributes to its financial performance.

Vardhman Special Steels Limited Financial Statement Overview

Summary

Vardhman Special Steels Limited shows strong revenue growth and a solid equity base. However, recent declines in EBIT and EBITDA margins, along with negative free cash flow, suggest areas for operational enhancement. Overall, the company's financial standing is sound, but attention to cash flow management is warranted.

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	13.57B	17.64B	16.61B	17.35B	13.68B	9.37B
Gross Profit	5.87B	2.50B	6.22B	6.07B	5.51B	3.98B
EBITDA	1.26B	1.77B	1.71B	1.80B	2.03B	1.15B
Net Income	654.48M	930.88M	916.28M	1.00B	1.01B	441.95M
Balance Sheet
Total Assets	0.00	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	0.00	1.20B	837.06M	1.44B	1.62B	1.91B
Total Liabilities	-7.98B	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	1.27B	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: 277.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 277.9 is below the 20-day moving average (MA) of 282.51, above the 50-day MA of 268.24, and above the 200-day MA of 242.27, indicating a neutral trend. The MACD of 2.98 indicates Positive momentum. The RSI at 49.46 is Neutral, neither overbought nor oversold. The STOCH value of 24.99 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	69 Neutral	₹18.50B	10.62	―	0.94%	6.61%	20.42%
STEELCAS	68 Neutral	₹22.37B	28.26	―	0.45%	10.11%	16.99%
VSSL	68 Neutral	₹26.82B	26.10	―	1.10%	6.99%	-12.58%
MSPL	65 Neutral	₹19.63B	58.19	―	―	-4.39%	-160.87%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
IPL	56 Neutral	₹22.15B	22.45	―	0.39%	26.32%	54.09%
MADRASFERT	52 Neutral	₹13.04B	19.22	―	―	13.28%	-15.68%

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.