Vardhman Special Steels Limited
Vardhman Special Steels Limited Fundamental Analysis
Vardhman Special Steels Limited (VSSL.BO) shows moderate financial fundamentals with a PE ratio of 22.60, profit margin of 6.25%, and ROE of 12.11%. The company generates $17.2B in annual revenue with moderate year-over-year growth of 6.20%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 52.4/100 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 VSSL.BO's fundamental strength across five key dimensions:
Efficiency Score
WeakVSSL.BO struggles to generate sufficient returns from assets.
Valuation Score
ModerateVSSL.BO shows balanced valuation metrics.
Growth Score
ModerateVSSL.BO shows steady but slowing expansion.
Financial Health Score
ExcellentVSSL.BO maintains a strong and stable balance sheet.
Profitability Score
WeakVSSL.BO struggles to sustain strong margins.
Key Financial Metrics
Is VSSL.BO Expensive or Cheap?
P/E Ratio
VSSL.BO trades at 22.60 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, VSSL.BO's PEG of 2.95 indicates potential overvaluation.
Price to Book
The market values Vardhman Special Steels Limited at 2.02 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 13.67 times EBITDA. This signals the market has high growth expectations.
How Well Does VSSL.BO Make Money?
Net Profit Margin
For every $100 in sales, Vardhman Special Steels Limited keeps $6.25 as profit after all expenses.
Operating Margin
Core operations generate 7.67 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $12.11 in profit for every $100 of shareholder equity.
ROA
Vardhman Special Steels Limited generates $6.91 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Vardhman Special Steels Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Vardhman Special Steels 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
VSSL.BO converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.60
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.95
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.02
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.41
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.06
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.98
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.12
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How VSSL.BO Stacks Against Its Sector Peers
| Metric | VSSL.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.60 | 27.01 | Better (Cheaper) |
| ROE | 12.11% | 949.00% | Weak |
| Net Margin | 6.25% | -16159.00% (disorted) | Weak |
| Debt/Equity | 0.06 | 0.48 | Strong (Low Leverage) |
| Current Ratio | 2.98 | 4.42 | Strong Liquidity |
| ROA | 6.91% | -6411.00% (disorted) | Weak |
VSSL.BO 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 Special Steels Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
108.74%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
2668.41%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
-6.92%
Industry Style: Cyclical, Commodity, Value
Declining