Vardhman Holdings Limited (VHL) AI Stock Analysis

Vardhman Holdings Limited

(NSE:VHL)

Select Model

Rating:70Outperform

Price Target:INR 3,736.00▲(8.26% Upside)

Action:reiterated

Date:08/28/26

The overall score is driven primarily by a very strong, unlevered balance sheet and historically attractive profitability metrics, balanced against highly volatile earnings, small and unstable revenue, and weak, inconsistent cash flows that undermine the quality of profits. Technicals are mildly negative, with the price below key moving averages and a negative MACD, which tempers the otherwise attractive low P/E valuation and keeps the stock in a cautiously positive but not top-tier range.

Positive Factors

Debt-free balance sheetA debt-free structure limits interest burden, refinancing exposure, and solvency risk. This gives VHL financial flexibility to preserve capital and manage its investment portfolio through periods of weaker market conditions.

Negative Factors

Inconsistent operating cash flowRepeated negative operating and free cash flow weakens confidence that reported earnings consistently convert into cash. Persistent variability can restrict reinvestment capacity and make future distributions more dependent on asset sales or portfolio receipts.

Vardhman Holdings Limited (VHL) vs. iShares MSCI India ETF (INDA)

Market Cap: INR 11.01B
Dividend Yield: 0.15%
Average Volume (3M): 40
Price to Earnings (P/E): 4.4
Beta (1Y): 1.25
Revenue Growth: 0.70%
EPS Growth: 1.65%
Country: India
Employees: 3
Sector: General
Sector Strength: 55
Industry: Asset Management

Vardhman Holdings Limited Business Overview & Revenue Model

Company Description

Established in 1962 and headquartered in Ludhiana, India, Vardhman Holdings Limited functions as a non-banking financial institution within the country. Its core business centers on lending and investment activities. The company underwent a name chan...

How the Company Makes Money

VHL makes money primarily through income earned on its investment portfolio and holdings. Key revenue streams typically include: (1) Dividend income from equity investments (including dividends received on strategic/long-term holdings in other compan...

Vardhman Holdings Limited Financial Statement Overview

Summary

Score reflects a very strong, debt-free balance sheet with steadily rising equity and high, structurally strong profitability (Income Score 78, Balance Sheet Score 92), offset by highly volatile earnings, small and unstable revenue, and very weak, inconsistent cash generation, including negative operating and free cash flows in most recent years (Cash Flow Score 42).

Income Statement

78Positive

Balance Sheet

92Very Positive

Cash Flow

42Neutral

Financial statement breakdown
Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	157.80M	141.10M	132.34M	84.78M	244.13M	140.99M
Gross Profit	153.70M	140.40M	126.11M	79.94M	231.65M	132.35M
EBITDA	1.62B	2.29B	202.70M	134.39M	33.41M	309.90M
Net Income	2.52B	2.16B	2.58B	1.85B	2.28B	4.29B
Balance Sheet
Total Assets	0	37.69B	35.41B	32.98B	31.01B	27.78B
Cash, Cash Equivalents and Short-Term Investments	15.00M	15.00M	1.19B	816.30M	624.52M	2.12B
Total Debt	0	0	0	0	0	0
Total Liabilities	-37.66B	35.50M	5.29M	5.98M	10.99M	6.75M
Stockholders Equity	37.66B	37.66B	35.40B	32.97B	31.00B	27.77B
Cash Flow
Free Cash Flow	-9.50M	0	-55.10M	-28.91M	-2.87M	-35.96M
Operating Cash Flow	-9.50M	359.70M	-55.10M	-28.91M	12.85M	-35.96M
Investing Cash Flow	25.30M	-344.40M	47.60M	43.93M	20.48M	-685.74M
Financing Cash Flow	-15.70M	-16.00M	-16.10M	-16.02M	-15.95M	-15.96M

Vardhman Holdings Limited Technical Analysis

Technical Analysis SentimentNegative

Last Price3450.90

Price Trends

50DMA3488.26Negative

100DMA3491.34Negative

200DMA3412.37Positive

Market Momentum

MACD-10.72Positive

RSI45.56Neutral

STOCH31.83Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:VHL, the sentiment is Negative. The current price of 3450.90 is below the 20-day moving average (MA) of 3551.84, below the 50-day MA of 3488.26, and above the 200-day MA of 3412.37, indicating a neutral trend. The MACD of -10.72 indicates Positive momentum. The RSI at 45.56 is Neutral, neither overbought nor oversold. The STOCH value of 31.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:VHL.

Vardhman Holdings Limited Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

IN:VHL against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IN:VHL	70Outperform	INR 10.92B	4.38	―	0.15%	0.70%	1.65%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
IN:CIFL	52Neutral	INR 7.06B	18.14	―	0.11%	-11.20%	12093.83%
IN:MONEYBOXX	52Neutral	INR 3.08B	181.53	―	―	5.87%	―
IN:MANCREDIT	48Neutral	INR 4.99B	27.61	―	0.32%	48.83%	36.34%
IN:UGROCAP	47Neutral	INR 11.12B	4.88	―	―	35.80%	-5.33%
IN:ARMANFIN	44Neutral	INR 14.96B	12.79	―	―	<0.01%	1773.87%

* General Sector Average

Performance Comparison

IN:VHL and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IN:VHL	Vardhman Holdings Limited	3422.15	-736.07	-17.70%
IN:ARMANFIN	Arman Financial Services Limited	1418.25	-204.85	-12.62%
IN:MANCREDIT	Mangal Credit & Fincorp Ltd.	236.20	51.49	27.88%
IN:UGROCAP	Ugro Capital Limited	72.35	-106.05	-59.45%
IN:CIFL	Capital India Finance Ltd	18.06	-17.09	-48.62%
IN:MONEYBOXX	MoneyBoxx Finance Ltd.	44.15	-35.80	-44.78%

Vardhman Holdings Limited Corporate Events

Vardhman Holdings Sets September 17, 2026 for Digitally-Enabled AGM and E-Voting

Aug 25, 2026

Vardhman Holdings Limited has scheduled its 62nd Annual General Meeting for September 17, 2026, at 11:15 a.m., to be conducted via video conferencing and other audio-visual means in line with Ministry of Corporate Affairs and SEBI guidelines. The com...

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.

Date of analysis: Aug 28, 2026

Vardhman Holdings Limited AI Stock Analysis