Vardhman Holdings Limited

Financial Services — Asset Management · NSE

₹3,735.00+₹40.60 (+1.10%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:28 pm

Understanding the Business

Company site ↗

The 60-second version of Vardhman Holdings Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Vardhman Holdings Limited operates as a non-banking financial company in India. It primarily engages in 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.

IndustryAsset Management

SectorFinancial Services

Employees3

Annual revenue₹9 Cr

How does it make money?

Turns over ₹9 Cr a year. Of every ₹100 of sales, about ₹2371 reaches shareholders as profit, with ₹2517 left at the operating level before interest, tax and depreciation. Each of its 3 employees supports ₹3.04 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹3.04 Cr

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC BANK LTD, ICICI BANK LTD., STATE BANK OF INDIA. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE16.5%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -63% while net margin moved +153% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-63%

Margin effect+153%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 28.0% a year
✗ Profit has declined at 1.8% a year

Quality vs. Valuation

Company Quality

61/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

80/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

4.7x

3Y Median

4.7x

40 monthly readings · mean 5.2x · range 3.7x–8.3x

Sector Median

17.0x

median of 4 sector peers

🟡Currently trading close to its 3y median of 4.7x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 72% below the peer median of 17.0x.

vs. its own history

Fair

4.7x median over 40 months · +1%

vs. sector peers

Cheap

17.0x median of 4 peers · -72%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

5.2x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 13.7% to 2516.7% over 3 years.
Return on capital is rising
ROCE has improved from 0.1% to 6.1%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 13.7% to 2516.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 72% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 2515%✓ 2516.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✗ 5.7%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Valuation vs its own median of 4.7x✓ 4.7x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

7 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 3 neutral · 3 weak

Market Cap

₹1,192 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

4.7x

Cheap

Cheap against the generic band

P/B Ratio

0.32x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹788.02

Profitable

Profitable on a per-share basis

ROE

5.7%

Weak

Weak capital efficiency

ROCE

6.1%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

193.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

56.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.13%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹6 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

93.4%

Good

Healthy core-business profitability

Net Margin

1164.9%

Good

Strong bottom-line conversion

Current Ratio

449.37

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.23

Defensive

Steadier than the market

52W Range Position

62%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

3497.5 / 3494.9

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

80.6

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹24 Cr	₹8 Cr	₹13 Cr	₹9 Cr	-28.0%
EBITDA	₹3 Cr	₹14 Cr	₹275 Cr	₹229 Cr	+309.4%
EBITDA Margin	13.7%	164.0%	2076.5%	2516.7%	—
PAT (Net Profit)	₹228 Cr	₹185 Cr	₹258 Cr	₹216 Cr	-1.8%
EPS	₹715.75	₹579.28	₹808.4	₹676.83	-1.8%
ROE	7.4%	5.6%	7.3%	5.7%	—
ROCE	0.1%	0.3%	7.7%	6.1%	—
Free Cash Flow	₹1 Cr	-₹3 Cr	-₹5 Cr	-₹6 Cr	—

🔴 Revenue has shrunk at 28.0% a year over 3 years.

🟢 EBITDA has grown at 309.4% a year over 3 years.

🟢 EBITDA Margin has risen from 13.7% to 2516.7% over 3 years (+2503.0 pts).

🟡 PAT (Net Profit) has been broadly flat over 3 years (-1.8% a year).

🟡 EPS has been broadly flat over 3 years (-1.8% a year).

🔴 ROE has fallen from 7.4% to 5.7% over 3 years (-1.6 pts).

🟢 ROCE has risen from 0.1% to 6.1% over 3 years (+6.0 pts).

🔴 Free Cash Flow has turned negative, from ₹1 Cr to -₹6 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3,769 Cr

Total Liabilities

₹4 Cr

Total Debt

—

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹6 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

85.5%

Corporate Actions

Dividend Rate

₹5

Ex-Dividend Date

28 Aug 2026

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%
STATE BANK OF INDIA	10.3x	15.2%

Recent News

6 general

Compare Vardhman Holdings with

Equitymaster, 16 Oct

Vardhman Holdings (NSE:VHL): What Is the Special Window for Physical Share Transfer?

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Vardhman Holdings (VHL.NS) Gains 2.05% to ₹3,652 as Holding Company Stock Nears Resistance - MAMA Signal

https://www.siam.in/, 12 Oct

Vardhman Holdings Share: Bull Case vs Bear Case for 2026

Univest, 29 Sept

Vardhman Holdings (BSE:500439) Stock Price

Simply Wall Street, 08 Apr

Compare with Vardhman Holdings

Equitymaster, 14 Oct

Watch Items

This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Valuation

MiddlingProfitability · Risk

WeakGrowth

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you.

1 of 3 tripwires tripped — Return on equity stays above 8% · see Key things to watch ↑