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Vardhman Acrylics Ltd.
(VARDHACRLC)
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Rating:75Outperform
Price Target:
₹50.00
▲(19.19% Upside)
Action:Reiterated
Date:08/17/26
Overall score is supported by strong solvency (very low/zero debt) and attractive valuation (low P/E and solid dividend yield). The main offset is inconsistent earnings and especially volatile cash flow with a sharp step-down in FY2026, while technicals are constructive but not strongly bullish.
Positive Factors
Very Low Leverage
Minimal debt reduces interest and refinancing risk, giving the company financial resilience through weaker acrylic-fibre cycles and flexibility to sustain operations without heavy creditor obligations.
Negative Factors
Unstable Cash Conversion
Weak and inconsistent cash conversion can limit internally funded investment and dividends, while increasing working-capital risk. A recovery in accounting profit may therefore not translate reliably into available cash.
Read all positive and negative factors
Positive Factors
Negative Factors
Very Low Leverage
Minimal debt reduces interest and refinancing risk, giving the company financial resilience through weaker acrylic-fibre cycles and flexibility to sustain operations without heavy creditor obligations.
Read all positive factors
Vardhman Acrylics Ltd. (VARDHACRLC) vs. iShares MSCI India ETF (INDA)
Market Cap
₹3.51B
Dividend Yield3.38%
Average Volume (3M)30.84K
Price to Earnings (P/E)8.5
Beta (1Y)1.07
Revenue Growth11.41%
EPS Growth351.50%
CountryIN
Employees318
SectorGeneral
Sector StrengthN/A
IndustryManufacturing - Textiles
Share Statistics
EPS (TTM)5.19
Shares Outstanding80,363,750
10 Day Avg. Volume29,050
30 Day Avg. Volume30,837
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)0.86
Price to Sales (P/S)0.69
P/FCF Ratio114.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Vardhman Acrylics Ltd. Business Overview & Revenue Model
Company Description
Vardhman Acrylics Limited manufactures and supplies acrylic fibers and tows in India. It offers its products under the Varlan brand name. The company was incorporated in 1990 and is headquartered in Ludhiana, India. Vardhman Acrylics Limited is a ...
How the Company Makes Money
Vardhman Acrylics primarily makes money by manufacturing and selling acrylic fibre to downstream customers (such as yarn spinners and textile manufacturers) who use the fibre as an input material. Revenue is therefore mainly generated from product...
Vardhman Acrylics Ltd. Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
91
Very Positive
Cash Flow
45
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.27B | 3.19B | 2.82B | 2.97B | 4.26B | 3.03B |
| Gross Profit | 932.40M | 777.30M | 829.60M | 993.60M | 1.36B | 687.55M |
| EBITDA | 505.90M | 319.00M | 193.10M | 272.67M | 488.78M | 232.36M |
| Net Income | 417.20M | 272.50M | 118.30M | 175.36M | 328.58M | 145.59M |
Balance Sheet | ||||||
| Total Assets | 0.00 | 3.43B | 3.49B | 3.28B | 3.42B | 3.02B |
| Cash, Cash Equivalents and Short-Term Investments | 1.86B | 1.86B | 1.25B | 821.69M | 909.99M | 818.51M |
| Total Debt | 0.00 | 8.00K | 1.80M | 11.37M | 3.39M | 27.85M |
| Total Liabilities | -2.54B | 886.40M | 1.10B | 848.30M | 968.81M | 900.44M |
| Stockholders Equity | 2.54B | 2.54B | 2.39B | 2.43B | 2.45B | 2.12B |
Cash Flow | ||||||
| Free Cash Flow | -156.90M | 19.10M | 211.20M | 43.56M | 305.34M | -120.02M |
| Operating Cash Flow | -113.00M | 74.00M | 261.60M | 76.04M | 385.27M | -94.14M |
| Investing Cash Flow | 506.70M | 73.50M | -90.80M | 120.32M | -367.33M | 1.90B |
| Financing Cash Flow | -122.10M | -122.90M | -170.90M | -195.03M | -26.03M | -1.98B |
Vardhman Acrylics Ltd. Technical Analysis
Positive
41.95
Price Trends
43.46
Positive
43.02
Positive
39.09
Positive
Market Momentum
0.22
Positive
54.31
Neutral
43.32
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:VARDHACRLC, the sentiment is Positive. The current price of 41.95 is below the 20-day moving average (MA) of 43.91, below the 50-day MA of 43.46, and above the 200-day MA of 39.09, indicating a bullish trend. The MACD of 0.22 indicates Positive momentum. The RSI at 54.31 is Neutral, neither overbought nor oversold. The STOCH value of 43.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:VARDHACRLC.
Vardhman Acrylics Ltd. Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | ₹3.51B | 8.54 | ― | 3.38% | 11.41% | 351.50% | |
74 Outperform | ₹3.50B | 9.63 | ― | ― | -6.94% | 140.06% | |
71 Outperform | ₹6.51B | 6.50 | ― | ― | 51.22% | 269.24% | |
57 Neutral | ₹2.51B | 10.97 | ― | 3.09% | -0.30% | ― | |
57 Neutral | ₹2.80B | 0.86 | ― | ― | -15.18% | 806.26% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
41 Neutral | ₹3.70B | 9.67 | ― | 0.94% | 2.91% | 89.10% |
* General Sector Average
IN:VARDHACRLC
Vardhman Acrylics Ltd.
44.34
1.40
3.26%
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Vardhman Acrylics Ltd. Corporate Events
Vardhman Acrylics Shareholders Approve Special Resolution via Postal Ballot
Jun 26, 2026
Vardhman Acrylics Limited has reported that shareholders approved a special business resolution through a postal ballot process conducted under the Companies Act and relevant SEBI listing regulations. Based on the scrutinizer’s report, the r...
Vardhman Acrylics Reports No New Share Demats in May 2026
Jun 6, 2026
Vardhman Acrylics Ltd. has reported to the National Stock Exchange that its fully paid equity shares remain available for dematerialisation through NSDL and CDSL under the existing ISIN. For the month ended 31 May 2026, the company recorded no sha...
Vardhman Acrylics Launches Fully Digital Postal Ballot for Shareholder Approval
May 28, 2026
Vardhman Acrylics has issued a postal ballot notice to seek shareholders’ approval on a proposed resolution through electronic voting only, in line with SEBI listing norms and recent corporate governance circulars. The notice has been dispat...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.