Vardhman Special Steels Ltd

₹ 264 1.60%
05 Dec 4:01 p.m.
About

Vardhman Special Steels is engaged in manufacturing of Billets, Steel bars & Rods and Bright Bars of various categories of special and alloy steels.

Key Points

Background
Vardhman Group ventured into the Steel business way back in 1973. In 2010, Vardhman Textiles Limited demerged the steel business into a separate legal entity Vardhman Special Steels Limited. [1]

  • Market Cap 1,072 Cr.
  • Current Price 264
  • High / Low 293 / 200
  • Stock P/E 10.0
  • Book Value 148
  • Dividend Yield 1.33 %
  • ROCE 25.7 %
  • ROE 19.8 %
  • Face Value 10.0

Pros

  • Company has delivered good profit growth of 39.5% CAGR over last 5 years
  • Debtor days have improved from 74.7 to 59.2 days.

Cons

  • Company has a low return on equity of 11.0% over last 3 years.
  • Promoter holding has decreased over last 3 years: -5.80%

* The pros and cons are machine generated. Pros / cons are based on a checklist to highlight important points. Please exercise caution and do your own analysis.

Peer comparison

Sector: Steel Industry: Steel - Medium / Small

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Quarterly Results

Figures in Rs. Crores

Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021 Dec 2021 Mar 2022 Jun 2022 Sep 2022
212 188 206 68 247 288 334 330 336 359 343 469 443
209 182 190 77 226 248 282 279 290 321 305 423 408
Operating Profit 3 6 16 -9 21 39 52 51 46 39 38 46 35
OPM % 1% 3% 8% -14% 9% 14% 16% 15% 14% 11% 11% 10% 8%
5 2 1 2 6 3 2 3 3 2 22 6 14
Interest 7 6 5 5 5 5 5 4 5 5 4 4 4
Depreciation 6 7 7 7 7 7 10 7 7 7 7 7 7
Profit before tax -5 -5 6 -20 15 31 40 43 37 29 49 41 38
Tax % 36% 137% 37% 35% 41% 30% 34% 35% 35% 34% 40% 25% 25%
Net Profit -3 2 4 -13 9 22 26 28 24 19 29 30 28
EPS in Rs -0.88 0.45 0.88 -3.16 2.21 5.36 6.51 6.86 6.00 4.81 7.20 7.47 6.91
Raw PDF

Profit & Loss

Figures in Rs. Crores

Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 TTM
112 520 440 367 658 653 674 859 1,121 846 937 1,368 1,615
100 470 423 572 646 610 612 797 1,053 806 834 1,195 1,458
Operating Profit 13 50 18 -205 12 43 62 62 68 40 104 174 157
OPM % 11% 10% 4% -56% 2% 7% 9% 7% 6% 5% 11% 13% 10%
0 2 6 209 7 1 4 6 2 9 13 29 44
Interest 1 7 11 12 20 23 28 21 24 26 20 17 17
Depreciation 1 4 4 6 14 17 18 22 24 26 30 27 28
Profit before tax 11 42 8 -13 -15 4 19 25 22 -2 66 158 157
Tax % 35% 38% 42% 28% -0% 0% 0% 0% -0% 244% 33% 36%
Net Profit 7 26 5 -9 -15 4 19 25 22 3 44 101 107
EPS in Rs 8.38 1.57 -3.05 -4.90 1.37 6.19 7.01 6.21 0.83 10.91 24.84 26.39
Dividend Payout % 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 14% 14%
Compounded Sales Growth
10 Years: 10%
5 Years: 15%
3 Years: 7%
TTM: 25%
Compounded Profit Growth
10 Years: 15%
5 Years: 40%
3 Years: 66%
TTM: 7%
Stock Price CAGR
10 Years: 29%
5 Years: 10%
3 Years: 60%
1 Year: 9%
Return on Equity
10 Years: 6%
5 Years: 10%
3 Years: 11%
Last Year: 20%

Balance Sheet

Figures in Rs. Crores

Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Sep 2022
6 19 19 19 19 19 19 36 36 40 41 41 41
Reserves 146 172 177 167 151 161 180 304 326 373 419 514 559
59 244 307 295 350 338 316 228 334 266 191 162 153
46 36 81 83 94 97 99 109 194 90 153 204 288
Total Liabilities 257 471 583 564 615 614 613 677 889 770 803 921 1,041
32 43 41 210 230 251 265 250 280 310 283 289 281
CWIP 0 9 131 30 21 2 1 7 33 12 13 13 23
Investments 20 99 122 32 14 14 1 8 0 5 0 15 15
205 320 289 292 350 347 346 412 577 443 507 603 721
Total Assets 257 471 583 564 615 614 613 677 889 770 803 921 1,041

Cash Flows

Figures in Rs. Crores

Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022
-8 17 55 -36 -33 46 68 11 -19 135 67 59
-22 -111 -154 52 -4 -16 -16 -16 -70 -88 7 -9
31 176 42 -33 31 -35 -50 7 82 -45 -74 -52
Net Cash Flow 1 82 -57 -16 -5 -5 2 2 -7 2 0 -2

Ratios

Figures in Rs. Crores

Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022
Debtor Days 285 74 85 122 99 109 102 83 61 78 87 59
Inventory Days 565 115 163 116 119 110 122 123 170 103 134 139
Days Payable 73 13 47 41 46 42 36 47 89 42 90 68
Cash Conversion Cycle 777 176 200 197 172 176 188 159 142 139 131 131
Working Capital Days 544 132 134 187 128 108 92 109 111 111 109 103
ROCE % 15% 4% -3% -0% 5% 9% 8% 7% 3% 13% 26%

Shareholding Pattern

Numbers in percentages

Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021 Dec 2021 Mar 2022 Jun 2022 Sep 2022
58.97 59.18 59.18 59.34 59.78 60.73 60.87 60.87 60.87 60.78 60.81 60.81
0.00 0.00 0.00 0.00 0.00 0.00 0.74 0.39 0.39 0.38 0.31 0.33
9.00 9.20 9.20 9.19 9.32 6.86 0.69 0.80 1.05 1.27 1.27 1.24
32.02 31.62 31.62 31.47 30.90 32.42 37.71 37.94 37.70 37.56 37.61 37.61

* The XBRL reporting format changed from Sep'2022 onwards. The new format added details about banks and foreign portfolio investors. These were not available earlier.
The sudden increase in FII or DII might be because of these changes.

Please click on the line-items to see the names of individual entities.

Documents

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