Vardhman Polytex (BOM:514175) ROE %: Negative Equity% (As of Mar. 2026)


BOM:514175 Vardhman Polytex Ltd BOM:514175
46 GF Score
Price ₹6.78
GF Value ₹5.07
Valuation Significantly Overvalued
! 6 Warning Signs
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What is Vardhman Polytex ROE %?

Vardhman Polytex BOM:514175 -4.37% 46 ROE % is Negative Equity% as of Mar. 2026. GuruFocus rates BOM:514175 with a GF Score™ of 46/100 and a GF Value™ of ₹5.07 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,023 Manufacturing - Apparel & Accessories companies, Vardhman Polytex ranks better than 99.9% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Vardhman Polytex's annualized net income for the quarter that ended in Mar. 2026 was ₹35 Mil. Vardhman Polytex's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was ₹-1,972 Mil. Therefore, Vardhman Polytex's annualized ROE % for the quarter that ended in Mar. 2026 was Negative Equity%.

The historical rank and industry rank for Vardhman Polytex's ROE % or its related term are showing as below:

BOM:514175' s ROE % Range Over the Past 10 Years
Min: 0   Med: 0   Max: 0
Current: Negative Equity

BOM:514175's ROE % is ranked better than
99.9% of 1023 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 4.04 vs BOM:514175: Negative Equity

Vardhman Polytex  (BOM:514175) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Mar. 2026 )
=Net Income/Total Stockholders Equity
=35.304/-1971.81
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(35.304 / 2593.864)*(2593.864 / 2831.319)*(2831.319 / -1971.81)
=Net Margin %*Asset Turnover*Equity Multiplier
=1.36 %*0.9161*N/A
=ROA %*Equity Multiplier
=1.25 %*N/A
=Negative Equity %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Mar. 2026 )
=Net Income/Total Stockholders Equity
=35.304/-1971.81
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (35.304 / 35.304) * (35.304 / -0.708) * (-0.708 / 2593.864) * (2593.864 / 2831.319) * (2831.319 / -1971.81)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1 * -49.8644 * -0.03 % * 0.9161 * N/A
=Negative Equity %

Note: The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Vardhman Polytex ROE % Related Terms


Vardhman Polytex ROE % Historical Data

* Premium members only.

The historical data trend for Vardhman Polytex's ROE % 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 Polytex ROE % Chart

Vardhman Polytex Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.00 Negative Equity 0.00 Negative Equity Negative Equity

Vardhman Polytex Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Negative Equity Negative Equity Negative Equity Negative Equity Negative Equity

Vardhman Polytex ROE % Competitor Comparison

For the Textile Manufacturing subindustry, Vardhman Polytex's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Vardhman Polytex's ROE % distribution charts can be found below:

* The bar in red indicates where Vardhman Polytex's ROE % falls into.


BOM:514175
46GF Score
Vardhman Polytex Ltd BOM:514175
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Vardhman Polytex ROE % Calculation

Vardhman Polytex's annualized ROE % for the fiscal year that ended in Mar. 2026 is calculated as

ROE %=Net Income (A: Mar. 2026 )/( (Total Stockholders Equity (A: Mar. 2025 )+Total Stockholders Equity (A: Mar. 2026 ))/ count )
=76.813/( (-2273.914+-1971.81)/ 2 )
=76.813/-2122.862
=Negative Equity %

Vardhman Polytex's annualized ROE % for the quarter that ended in Mar. 2026 is calculated as

ROE %=Net Income (Q: Mar. 2026 )/( (Total Stockholders Equity (Q: Dec. 2025 )+Total Stockholders Equity (Q: Mar. 2026 ))/ count )
=35.304/( (0+-1971.81)/ 1 )
=35.304/-1971.81
=Negative Equity %

* 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.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Mar. 2026) net income data. ROE % is displayed in the 30-year financial page.

* Note that if the average Total Stockholders Equity is zero or negative, then ROE % would be considered meaningless and hence not be calculated.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of Negative Equity% mean?
Vardhman Polytex (BOM:514175) has a ROE % of Negative Equity% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Vardhman Polytex and its competitors. According to the industry distribution chart, Vardhman Polytex ranks #1 out of 1023 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 0.099999999999994%.
Is Vardhman Polytex's ROE % too high?
Vardhman Polytex's current ROE % is Negative Equity%. Based on the distribution chart, Vardhman Polytex ranks #1 out of 1023 companies in the Manufacturing - Apparel & Accessories industry, which is in the top quartile — a strong position relative to peers. Overall, Vardhman Polytex has a GF Score™ of 46/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Vardhman Polytex's ROE % compare to competitors?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Vardhman Polytex ranks #1 out of 1023 companies for ROE %. This places Vardhman Polytex in the top 0% of its industry — outperforming the majority of peers. The industry median ROE % is 4.04. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Manufacturing - Apparel & Accessories company?
The median ROE % among Manufacturing - Apparel & Accessories companies is 4.04, based on 1,023 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Vardhman Polytex and its competitors. For the Manufacturing - Apparel & Accessories industry, the median ROE % is 4.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vardhman Polytex's current ROE % is Negative Equity%. 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 ₹5.07, compared to a current price of ₹6.78 — trading 33.7% above its estimated fair value. The current ROE % is Negative Equity%. Vardhman Polytex's overall GF Score™ is 46/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Vardhman Polytex (BOM:514175), the current ROE % is Negative Equity% 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 ₹6.78 is trading 33.7% above its estimated GF Value™ of ₹5.07. GuruFocus considers Vardhman Polytex to be Significantly Overvalued.

Key valuation signals for BOM:514175:

  • ROE %: Negative Equity%
  • GF Value™: ₹5.07 vs. price of ₹6.78 (33.7% above fair value)
  • GF Score™: 46/100 with 6 warning signs

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 Business Description

Other Exchanges VARDMNPOLY:India
Address Chandigarh Road, Vardhman Park, Ludhiana, PB, IND, 141123
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.
46GF Score

Get the complete analysis for BOM:514175

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

₹6.78
Price
₹5.07
GF Value