Vardhman Polytex's Days Sales Outstanding for the
three
months ended in Mar. 2026 was 4.75.
Vardhman Polytex's Days Inventory for the
three
months ended in Mar. 2026 was 140.02.
Vardhman Polytex's Days Payable for the
three
months ended in Mar. 2026 was 133.83.
Therefore, Vardhman Polytex's Cash Conversion Cycle (CCC) for the
three
months ended in Mar. 2026 was 10.94.
Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.
Be Aware
CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.
The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.
Vardhman Polytex Cash Conversion Cycle Related Terms
Vardhman Polytex Cash Conversion Cycle Historical Data
* Premium members only.
The historical data trend for Vardhman Polytex's Cash Conversion Cycle can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Textile Manufacturing subindustry, Vardhman Polytex's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Vardhman Polytex Cash Conversion Cycle vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Vardhman Polytex's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Vardhman Polytex's Cash Conversion Cycle falls into.
Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.
Cash Conversion Cycle is one of several measures of management effectiveness.
Vardhman Polytex's Cash Conversion Cycle for the fiscal year that ended in Mar. 2026 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Vardhman Polytex (BOM:514175) has a Cash Conversion Cycle of 10.94 as of Mar. 2026. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Vardhman Polytex and its competitors.
Is Vardhman Polytex's Cash Conversion Cycle too high?
Vardhman Polytex's current Cash Conversion Cycle is 10.94. The Manufacturing - Apparel & Accessories industry median Cash Conversion Cycle is 124.19. Vardhman Polytex's value of 10.94 is 91.2% below this industry median. Overall, Vardhman Polytex has a GF Score™ of 49/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Vardhman Polytex's Cash Conversion Cycle compare to competitors?
Vardhman Polytex's Cash Conversion Cycle of 10.94 can be compared against companies in the Manufacturing - Apparel & Accessories industry. The industry median Cash Conversion Cycle is 124.19. Vardhman Polytex's value of 10.94 is 91.2% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Conversion Cycle for a Manufacturing - Apparel & Accessories company?
The median Cash Conversion Cycle among Manufacturing - Apparel & Accessories companies is 124.19, based on 1,034 companies in the industry. Companies in the top quartile (top 25%) have a Cash Conversion Cycle significantly above this median, while those in the bottom quartile fall well below. However, Cash Conversion Cycle should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Vardhman Polytex's current Cash Conversion Cycle of 10.94 is 91.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Conversion Cycle mean?
A high Cash Conversion Cycle can signal that a stock is expensive relative to its fundamentals. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Vardhman Polytex and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Cash Conversion Cycle is 124.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vardhman Polytex's current Cash Conversion Cycle is 10.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vardhman Polytex stock overvalued right now?
Based on GuruFocus' analysis, Vardhman Polytex (BOM:514175) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹5.02, compared to a current price of ₹6.62 — trading 31.9% above its estimated fair value. The current Cash Conversion Cycle is 10.94 and 91.2% below the Manufacturing - Apparel & Accessories industry median of 124.19. Vardhman Polytex's overall GF Score™ is 49/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Conversion Cycle calculated?
Cash Conversion Cycle is calculated from a company's financial statements. For Vardhman Polytex (BOM:514175), the current Cash Conversion Cycle is 10.94 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Vardhman Polytex (BOM:514175) Overvalued in 2026?
Based on GuruFocus' analysis, Vardhman Polytex stock appears to be overvalued.
The current stock price of ₹6.62 is trading 31.9% above its estimated GF Value™ of ₹5.02.
GuruFocus considers Vardhman Polytex to be Significantly Overvalued.
Key valuation signals for BOM:514175:
Cash Conversion Cycle: 10.94
GF Value™: ₹5.02 vs. price of ₹6.62 (31.9% above fair value)
Industry Position: 91.2% below the Manufacturing - Apparel & Accessories median
No single metric tells the full story. See the BOM:514175 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Vardhman Polytex Ltd is an Indian company operating in the Textile industry. The company is engaged in the manufacturing and export of cotton fabric and branded yarn. It is also engaged in the Real Estate business. It has production facilities located in Bathinda, Ludhiana, and Nalagarh in India. The Company's principal activity is the manufacturing of yarn & garments. Its product range includes yarns, fabrics, and garments including compact yarns, Organic Cotton Yarns, Dyed Yarns, polo t-shirts, round neck t-shirts, hoodies, and sweatshirts for men, women, and kids. It generates the majority of the revenue from the Textile Business. Geographically it covers the Indian and International Market.
49GF Score
Get the complete analysis for BOM:514175
Cash Conversion Cycle is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
BOM:514175 has been successfully added to your 
