Vardhman Holdings Limited, formerly known as Vardhman Spinning & General Mills Limited, was incorporated in 1962 and commenced production in 1965. Promoted by V S Oswal and R C Oswal, it is part of the Vardhman group. In 2004-05, the textile business was demerged to Mahavir Spinning Mills Limited, leaving Vardhman Holdings with assets primarily comprising investments in group companies. The company's name was officially changed to 'Vardhman Holdings Limited' on March 27, 2006.
Vardhman Holdings Ltd operates as a Non-Deposit Taking Systemically Important Non Banking Finance Corporation, with its core business centered on investment activities. The company strategically focuses on systematic investments across various asset classes, maintaining a dynamic portfolio management approach to adapt to changing market conditions. Its current portfolio encompasses investments in debt, equity, and real estate. Associate companies include Vardhman Textiles Limited and Vardhman Spinning and General Mills Limited.
Vardhman Holdings Ltd presents an interesting investment proposition. As of 13-Jun-2025, it has a market capitalization of ₹1,272 Crore, while the market value of its investments stands at ₹4,077 Crore. This significant difference indicates potential undervaluation and a discount to its underlying asset value.
The company demonstrates strong financial health with an operating revenue of ₹22.77 Crore on a trailing 12-month basis. It has shown an outstanding annual revenue growth of 124% and a commendable Pre-tax margin of 87%. The trailing twelve months (TTM) profit after tax was ₹258 Crore.
- Market Capitalization: ₹1,272 Cr (as of 13-Jun-2025)
- Market Value of Investments: ₹4,077 Cr
- TTM Operating Revenue: ₹22.77 Cr
- TTM Annual Revenue Growth: 124%
- TTM Pre-tax Margin: 87%
- TTM Profit After Tax: ₹258 Cr
- Current Stock Price: ₹4,073
- Stock High/Low: ₹5,760 / ₹2,850
- P/E Ratio: 5.03
- Book Value: ₹11,093
- Dividend Yield: 0.12%
- ROE: 5%
The company is almost debt-free, which significantly strengthens its financial stability and operational flexibility. Working capital requirements have also seen a substantial reduction, dropping from 300 days to 96.2 days, reflecting improved operational efficiency.
Promoter Holding stands strong at 74.9%, indicating high promoter confidence and commitment. The principal promoters are DEVAKAR INVESTMENT AND TRADING COMPANY PRIVATE LIMITED and ADISHWAR ENTERPRISES LLP, collectively holding 67.15% of the total equity. Paul Oswal serves as the Chairman of the company, and there are no promoter pledges reported.
In a strategic move in June 2025, Vardhman Holdings and Aichi Steel executed a Shareholder Agreement (SHA) following Aichi Steel's increased stake to 24.90% in Vardhman Special Steels. This partnership underscores the company's ongoing commitment to making value-creating investments within its portfolio companies.
Vardhman Holdings offers a compelling investment opportunity within the financial services sector. Its strategic transformation from a textile manufacturer to a specialized investment entity, backed by deep industry knowledge and judicious investments, makes it unique. Trading at a discount to its underlying asset value, with the market value of investments (₹4,077 Cr) exceeding its market cap (₹1,305 Cr), the company presents potential value for investors who appreciate the quality of its diverse investment portfolio.
The company's robust financial standing, characterized by its near debt-free status and a diversified portfolio spanning debt, equity, and real estate, positions it favorably for sustained growth. The systematic investment methodology and adaptive portfolio management strategy allow Vardhman Holdings to navigate market dynamics effectively while ensuring consistent income generation from its holdings.
