Vardhman Holdings Limited
Vardhman Holdings Limited Fundamental Analysis
Vardhman Holdings Limited (VHL.NS) shows moderate financial fundamentals with a PE ratio of 4.52, profit margin of 13.22%, and ROE of 6.48%. The company generates $0.2B in annual revenue with strong year-over-year growth of 56.09%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 66.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze VHL.NS's fundamental strength across five key dimensions:
Efficiency Score
WeakVHL.NS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentVHL.NS trades at attractive valuation levels.
Growth Score
ExcellentVHL.NS delivers strong and consistent growth momentum.
Financial Health Score
ExcellentVHL.NS maintains a strong and stable balance sheet.
Profitability Score
WeakVHL.NS struggles to sustain strong margins.
Key Financial Metrics
Is VHL.NS Expensive or Cheap?
P/E Ratio
VHL.NS trades at 4.52 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, VHL.NS's PEG of -0.92 indicates potential undervaluation.
Price to Book
The market values Vardhman Holdings Limited at 0.28 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 63.41 times EBITDA. This signals the market has high growth expectations.
How Well Does VHL.NS Make Money?
Net Profit Margin
For every $100 in sales, Vardhman Holdings Limited keeps $13.22 as profit after all expenses.
Operating Margin
Core operations generate 94.41 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.48 in profit for every $100 of shareholder equity.
ROA
Vardhman Holdings Limited generates $6.19 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Vardhman Holdings Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Vardhman Holdings Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
VHL.NS converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
4.52
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.92
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.28
vs 25 benchmark
P/S Ratio
Price to sales ratio
59.77
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.87
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.004
vs 25 benchmark
How VHL.NS Stacks Against Its Sector Peers
| Metric | VHL.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 4.52 | 19.09 | Better (Cheaper) |
| ROE | 6.48% | 843.00% | Weak |
| Net Margin | 1322.45% | 3730.00% | Weak |
| Debt/Equity | 0.00 | 0.90 | Strong (Low Leverage) |
| Current Ratio | 2.87 | 661.68 | Strong Liquidity |
| ROA | 6.19% | -21651.00% (disorted) | Weak |
VHL.NS outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Vardhman Holdings Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-36.22%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
61.57%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
94.17%
Industry Style: Value, Dividend, Cyclical
High Growth