Vardhman TextilesNSE:VTL -1.70%76 Quick Ratio is 1.98 as of Mar. 2026, which is 37% above its 10-year median of 1.45. GuruFocus rates NSE:VTL with a GF Score™ of 76/100 and a GF Value™ of ₹478.07 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,067 Manufacturing - Apparel & Accessories companies, Vardhman Textiles ranks better than 74.51% on this metric.
Vardhman Textiles (NSE:VTL) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Vardhman Textiles Quick Ratio Related Terms
Vardhman Textiles Quick Ratio Historical Data
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The historical data trend for Vardhman Textiles's Quick Ratio 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.
Vardhman Textiles Quick Ratio Competitor Comparison
For the Textile Manufacturing subindustry, Vardhman Textiles's Quick Ratio, along with its competitors' market caps and Quick Ratio 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 Textiles Quick Ratio vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Vardhman Textiles's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Vardhman Textiles's Quick Ratio falls into.
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Vardhman Textiles's Quick Ratio 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 Textiles (NSE:VTL) has a Quick Ratio of 1.98 as of Mar. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Vardhman Textiles and its competitors. This is 37% above median its historical median of 1.45. Over the past decade, Vardhman Textiles' Quick Ratio has ranged from 1.00 to 2.35. According to the industry distribution chart, Vardhman Textiles ranks #272 out of 1067 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 25.5%.
Is Vardhman Textiles' Quick Ratio too high?
Vardhman Textiles' current Quick Ratio of 1.98 is 37% above median its 10-year median of 1.45. Over the past 10 years, this metric has ranged from a low of 1.00 to a high of 2.35. The Manufacturing - Apparel & Accessories industry median Quick Ratio is 1.10. Vardhman Textiles' value of 1.98 is 80% above this industry median. Based on the distribution chart, Vardhman Textiles ranks #272 out of 1067 companies in the Manufacturing - Apparel & Accessories industry, which is above the industry midpoint. Overall, Vardhman Textiles has a GF Score™ of 76/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Vardhman Textiles' Quick Ratio compare to competitors?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Vardhman Textiles ranks #272 out of 1067 companies for Quick Ratio. This puts Vardhman Textiles in the upper half of its industry. The industry median Quick Ratio is 1.10. Vardhman Textiles' value of 1.98 is 80% above this benchmark. Historically, Vardhman Textiles' own Quick Ratio has ranged from 1.00 to 2.35 over the past decade. While the company's 10-year median is 1.45 vs. the industry median of 1.10, Vardhman Textiles has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Quick Ratio for a Manufacturing - Apparel & Accessories company?
The median Quick Ratio among Manufacturing - Apparel & Accessories companies is 1.10, based on 1,067 companies in the industry. Companies in the top quartile (top 25%) have a Quick Ratio significantly above this median, while those in the bottom quartile fall well below. However, Quick Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Vardhman Textiles's current Quick Ratio of 1.98 is 80% above 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 Quick Ratio mean?
A high Quick Ratio can signal that a stock is expensive relative to its fundamentals. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Vardhman Textiles and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Quick Ratio is 1.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vardhman Textiles's current Quick Ratio is 1.98, which is 37% above median its own 10-year median of 1.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vardhman Textiles stock overvalued right now?
Based on GuruFocus' analysis, Vardhman Textiles (NSE:VTL) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹478.07, compared to a current price of ₹634.30 — trading 32.7% above its estimated fair value. The current Quick Ratio is 1.98, which is 37% above median its 10-year median of 1.45 and 80% above the Manufacturing - Apparel & Accessories industry median of 1.10. Vardhman Textiles' overall GF Score™ is 76/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Quick Ratio calculated?
Quick Ratio is calculated from a company's financial statements. For Vardhman Textiles (NSE:VTL), the current Quick Ratio is 1.98 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 Textiles (NSE:VTL) Overvalued in 2026?
Based on GuruFocus' analysis, Vardhman Textiles stock appears to be overvalued.
The current stock price of ₹634.30 is trading 32.7% above its estimated GF Value™ of ₹478.07.
GuruFocus considers Vardhman Textiles to be Significantly Overvalued.
Key valuation signals for NSE:VTL:
Quick Ratio: 1.98 (37% above median its 10-year median of 1.45)
GF Value™: ₹478.07 vs. price of ₹634.30 (32.7% above fair value)
Industry Position: 80% above the Manufacturing - Apparel & Accessories median (#272 of 1067)
No single metric tells the full story. See the NSE:VTL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Vardhman Textiles Ltd is a manufacturer and seller of textiles and acrylic fiber. The company's segments include: Textile and Fibre. The company derives majority of its revenue from Textiles segment, which offers greige and dyed yarns in a number of fabrics such as cotton, polyester, acrylic, organic cotton, melange, cellulose, and synthetics. The company provides fabrics for the apparel industry and home textiles and manufactures shirts for retail brands. In addition, It offers hot-rolled bars for use in industries such as automotive, engineering, and allied industries. Geographically, it operates in India as well as Overseas.
76GF Score
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