Vardhman Special Steels (NSE:VSSL) Financial Strength: 9 (As of Jun. 2026) — 50% Above Median

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NSE:VSSL Vardhman Special Steels Ltd NSE:VSSL
75 GF Score
Price ₹304.75
GF Value ₹227.69
Valuation Significantly Overvalued
! 8 Warning Signs
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What is Vardhman Special Steels Financial Strength?

Vardhman Special Steels NSE:VSSL +1.55% 75 Financial Strength is 9 as of Jun. 2026, which is 50% above its 10-year median of 6.00. GuruFocus rates NSE:VSSL with a GF Score™ of 75/100 and a GF Value™ of ₹227.69 (Significantly Overvalued). The stock has 8 warning signs investors should review.

Vardhman Special Steels has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Vardhman Special Steels Ltd shows strong financial strength.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Vardhman Special Steels's Interest Coverage for the quarter that ended in Jun. 2026 was 14.74. Vardhman Special Steels's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.00. As of today, Vardhman Special Steels's Altman Z-Score is 6.98.


Vardhman Special Steels  (NSE:VSSL) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Vardhman Special Steels has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.


Vardhman Special Steels Financial Strength Related Terms


NSE:VSSL vs NUE, STLD, RS: Financial Strength Comparison

For the Steel subindustry, Vardhman Special Steels's Financial Strength, along with its competitors' market caps and Financial Strength 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 Special Steels Financial Strength vs Steel Industry

For the Steel industry and Basic Materials sector, Vardhman Special Steels's Financial Strength distribution charts can be found below:

* The bar in red indicates where Vardhman Special Steels's Financial Strength falls into.


NSE:VSSL
75GF Score
Vardhman Special Steels Ltd NSE:VSSL
Financial Strength is just one metric. See GF Score™, valuation, warning signs, and more.
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Vardhman Special Steels Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Vardhman Special Steels's Interest Expense for the months ended in Jun. 2026 was ₹-33 Mil. Its Operating Income for the months ended in Jun. 2026 was ₹489 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2026 was ₹0 Mil.

Vardhman Special Steels's Interest Coverage for the quarter that ended in Jun. 2026 is

Interest Coverage=-1*Operating Income (Q: Jun. 2026 )/Interest Expense (Q: Jun. 2026 )
=-1*488.586/-33.15
=14.74

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Vardhman Special Steels's Debt to Revenue Ratio for the quarter that ended in Jun. 2026 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2026 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 0) / 19440.28
=0.00

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Vardhman Special Steels has a Z-score of 6.98, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 6.98 is strong.

* 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.

Frequently Asked Questions Learn more about Financial Strength →
What does a Financial Strength of 9 mean?
Vardhman Special Steels (NSE:VSSL) has a Financial Strength of 9 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Vardhman Special Steels and its competitors. This is 50% above median its historical median of 6.00. Over the past decade, Vardhman Special Steels' Financial Strength has ranged from 3.00 to 9.00.
Is Vardhman Special Steels' Financial Strength too high?
Vardhman Special Steels' current Financial Strength of 9 is 50% above median its 10-year median of 6.00. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 9.00. Overall, Vardhman Special Steels has a GF Score™ of 75/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Vardhman Special Steels' Financial Strength compare to NUE and STLD?
Vardhman Special Steels' Financial Strength of 9 can be compared against companies in the Steel industry. Historically, Vardhman Special Steels' own Financial Strength has ranged from 3.00 to 9.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Steel company?
A good Financial Strength depends on the Steel industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Vardhman Special Steels and its competitors. Vardhman Special Steels's current Financial Strength is 9, which is 50% above median its own 10-year median of 6.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vardhman Special Steels stock overvalued right now?
Based on GuruFocus' analysis, Vardhman Special Steels (NSE:VSSL) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹227.69, compared to a current price of ₹304.75 — trading 33.8% above its estimated fair value. The current Financial Strength is 9, which is 50% above median its 10-year median of 6.00. Vardhman Special Steels' overall GF Score™ is 75/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Vardhman Special Steels (NSE:VSSL), the current Financial Strength is 9 as of Jun. 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 Special Steels (NSE:VSSL) Overvalued in 2026?

Based on GuruFocus' analysis, Vardhman Special Steels stock appears to be overvalued. The current stock price of ₹304.75 is trading 33.8% above its estimated GF Value™ of ₹227.69. GuruFocus considers Vardhman Special Steels to be Significantly Overvalued.

Key valuation signals for NSE:VSSL:

  • Financial Strength: 9 (50% above median its 10-year median of 6.00)
  • GF Value™: ₹227.69 vs. price of ₹304.75 (33.8% above fair value)
  • GF Score™: 75/100 with 8 warning signs

No single metric tells the full story. See the NSE:VSSL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Vardhman Special Steels Business Description

Other Exchanges 534392:India
Address Chandigarh Road, Vardhman Premises, Ludhiana, PB, IND, 141 010
Vardhman Special Steels Ltd is engaged in manufacturing steel bars and rods. The company caters to diverse requirements of hot-rolled bars for Engineering, Automotive, Tractor, Bearing and Allied Industries. Its products include Carbon steel, Carbon manganese steel, Chrome steel, Chrome manganese steel, Chrome moly steel, Boron steel, Vanadium steel, and Ball bearing steel. The company manufactures products using techniques such as Steel melting, Rolling Mill, Heat treatment and Bright bar shop. It generates a majority of its revenue from the sale of black bars. The company's operations are mainly located within India and also has a presence outside India.
75GF Score

Get the complete analysis for NSE:VSSL

Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

₹304.75
Price
₹227.69
GF Value