Vardhman Polytex (VARDMNPOLY)

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

Strengths

• Latest quarter still shows ₹51 Cr of sales, so the operating business has not completely shut down.
• Latest quarter net profit is ₹0 Cr, not a large loss, suggesting acute cash burning may have stopped.
• Current price ₹7.12 is closer to the 52-week low of ₹5.10 than the high of ₹10.56, reducing speculative froth.
• Zero dividend payout conserves cash in a stressed balance sheet situation.

Concerns

• Book value is negative at ₹-4.78 per share, meaning shareholder equity has been wiped out.
• Sales growth is -32.85% and profit growth is -99.38%, with latest quarter net profit of ₹0 Cr.
• Piotroski F-Score of 2/9 and ROCE of 0.00% indicate very weak financial and operational health.
• P/E of 49.72 is meaningless without reliable earnings, and there is no dividend yield to support the stock.

AI Analysis

Let me start with the balance sheet. Book value is negative at ₹-4.78 per share. That means the equity is gone, liabilities exceed assets, and there is no margin of safety. A P/E of 49.72 is meaningless when profit growth has collapsed by 99.38% and the latest quarter net profit is ₹0 Cr. Sales fell 32.85%, ROCE is 0.00%, and ROE is -2.10%. This is not a business compounding capital; it is consuming it. The Piotroski F-score of 2 out of 9 reinforces financial distress. Debt-to-equity is N/A because equity itself is negative. There is no dividend to compensate shareholders. At ₹7.12, the market cap is ₹387 Cr, yet there is no book value support. The 52-week range of ₹5.10 to ₹10.56 tells me the market has already repriced this stock lower, but a low price is not an invitation. In Graham's language, price is what you pay, value is what you get. Here, the business has no positive book value, no return on capital, and falling sales. I see no moat in commodity textiles and no pricing power. Promoter holding of 34.22% is moderate, but with negative equity, shareholders need evidence of fresh capital or a credible turnaround plan. I would leave this to speculators. The numbers fail every value screen I use. A turnaround must be proven by stabilised sales, positive book value, and an improving F-score before I would look again. Until then, this is a pass.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer