Vardhman Acrylics Limited manufactures and supplies acrylic fibers and tows in India, offering its products under the "Varlan" brand name. The company was incorporated in 1990 and is headquartered in Ludhiana, India. Vardhman Acrylics Limited operates as a subsidiary of Vardhman Textiles Limited.
Vardhman Acrylics Ltd is an India-based company engaged in the production of acrylic fiber and tow, marketed under the "VARLAN" brand. They operate a 18,000 TPA (Tons Per Annum) plant in Jhagadia, Bharuch, Gujarat. Their products are used in various industries including hosiery, weaving, and home furnishing. The company has a capacity to manufacture 22,000 tons per annum of Acrylic Staple Fibre and Tow under the brand name 'VARLAN®'.
Vardhman, a leading textiles group in India, ventured into the manufacture of Acrylic Fiber & Acrylic Tow in 1999. A modern plant, utilizing technology from Japan Exlan Co. Ltd, a leader in innovation in this field, was initially set up as a joint venture with Japan Exlan Co. and Marubeni Corporation, Japan, in the state of Gujarat in western India.
The company is engaged in the business of manufacturing acrylic fiber and tow. They have established an 18,000 TPA acrylic staple fiber and tow production plant at Jhagadia, Bharuch, in the state of Gujarat. Their products are marketed under the brand name VARLAN. The company's manufacturing setup represents a significant technological advancement in the Indian acrylic fiber industry, with Japanese technology ensuring high-quality production standards.
Vardhman markets acrylic fiber under the Varlan brand. Acrylic fiber is used to manufacture hand-knitted yarn, blankets, jerseys, sweaters, saris, upholstery, and carpets. This diverse application range demonstrates the versatility and broad market appeal of Vardhman's acrylic fiber products.
VAL is among the top three players in the acrylic fiber segment in India, holding around 90% of the total operational capacity in the domestic acrylic fiber industry. This dominant market position establishes Vardhman Acrylics as a key player in India's synthetic fiber manufacturing sector. It is part of Vardhman Textiles Ltd, which holds a 70.74% stake in VAL and provides managerial and operational support.
The company benefits from being part of the larger Vardhman Group ecosystem, which has established itself as a significant player in India's textile industry. The Vardhman Group, based in Ludhiana, Punjab, India, was established in 1965 and is engaged in manufacturing and trading Yarn, Processed Fabric, Sewing Thread, Acrylic Fibre, and Alloy Steel.
Based on the latest available financial data:
- Q4 FY2024-25 Performance:
- Revenue: ₹72.11 Cr (as of March 2025)
- Net Profit: ₹1.96 Cr (as of March 2025)
- Vardhman Acrylics Ltd's net profit fell by -62.95% compared to the same period last year.
- Q3 FY2024-25 Performance:
- Net Profit: ₹3.97 Cr (for the quarter ended December 2024), a decline of 29.11% from ₹5.60 Cr in Q3 FY2023-24.
- Sales: ₹81.78 Cr (for the quarter ended December 2024), an increase of 32.14% from ₹61.89 Cr in Q3 FY2023-24.
- Q2 FY2024-25 Performance:
- Net Profit: ₹1.56 Cr (for the quarter ended September 2024), a decline of 74.76% from ₹6.18 Cr in Q2 FY2023-24.
- Sales: ₹70.62 Cr (for the quarter ended September 2024), a decline of 18.27% from ₹86.41 Cr in Q2 FY2023-24.
- Market Capitalization: ₹401.42 Cr (as of latest available data)
- The company trades as a small-cap stock.
Key Financial Ratios:
- PE Ratio (TTM): 27.30
- PB Ratio (TTM): 1.78
- Dividend Yield (TTM): 4.83%
- In the quarter ending March 2024, Vardhman Acrylics Ltd declared a dividend of ₹2.00, translating to a dividend yield of 4.00%.
- The last dividend per share was ₹2.00 INR.
- The company has been maintaining a consistent dividend policy with a payout of 84.9%.
- Chairperson: Shri Paul Oswal
- Company Secretary & Compliance Officer: SK Satin Katyal
Promoters:
- VARDHMAN TEXTILES LIMITED
- DEVAKAR INVESTMENT AND TRADING COMPANY PRIVATE LIMITED
- These promoters collectively own 73.97% of the total equity.
- There is no promoter pledging in Vardhman Acrylics Ltd.
The company has significantly reduced its debt and is considered almost debt-free. This strong, debt-free balance sheet enables the company to report stable earnings growth across business cycles. The debt-free status provides financial flexibility and reduces the interest burden on the company's operations.
- Search Interest: Search interest for Vardhman Acrylics Ltd Stock has increased by 63% in the last 30 days, indicating growing investor interest.
- 52-Week High: ₹74.00 (as per one data point) / ₹69.30 (as per another)
- 52-Week Low: ₹38.80
- Last 12 Months Performance: Share price moved down by 20.62% on NSE.
- Last 1 Month Performance: Share price moved up by 7.68% on NSE.
Challenges:
- The company has delivered a poor sales growth of -3.38% over the past five years.
- It has a low return on equity of 8.75% over the last 3 years.
- Working capital days have increased from 66.2 days to 157 days, indicating potential efficiency challenges in working capital management.
Growth Prospects:
The company's strong market position in the acrylic fiber segment, combined with its debt-free status and established VARLAN brand, positions it well for potential recovery and growth in India's textile industry. The technological advantage gained through Japanese collaboration and the backing of the larger Vardhman Group provide additional strategic strengths for future expansion and market development.
