Vardhman PolytexBOM:514175 -1.17%56 Altman Z-Score is 1.30 as of Jul. 07, 2026. GuruFocus rates BOM:514175 with a GF Score™ of 56/100 and a GF Value™ of ₹5.03 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,025 Manufacturing - Apparel & Accessories companies, Vardhman Polytex ranks worse than 80.39% on this metric.
The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.
Warning Sign:
Altman Z-score of 1.3 is in distress zone. This implies bankruptcy possibility in the next two years.
Vardhman Polytex has a Altman Z-Score of 1.30, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
The zones of discrimination were as such:
When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.
The historical rank and industry rank for Vardhman Polytex's Altman Z-Score or its related term are showing as below:
BOM:514175'
s Altman Z-Score Range Over the Past 10 Years
Min: -3.17 Med: -1.37 Max: 1.3
Current: 1.3
During the past 13 years, Vardhman Polytex's highest Altman Z-Score was 1.30. The lowest was -3.17. And the median was -1.37.
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.
X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.
Altman Z-Score does not apply to financial companies.
Vardhman Polytex Altman Z-Score Related Terms
Vardhman Polytex Altman Z-Score Historical Data
* Premium members only.
The historical data trend for Vardhman Polytex's Altman Z-Score 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 Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Vardhman Polytex's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Vardhman Polytex's Altman Z-Score falls into.
Altman 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.
Vardhman Polytex's Altman Z-Score for today is calculated with this formula:
Z
=
1.2
*
X1
+
1.4
*
X2
+
3.3
*
X3
+
0.6
*
X4
+
1.0
*
X5
=
1.2
*
-0.1173
+
1.4
*
0
+
3.3
*
0.0589
+
0.6
*
0.6808
+
1.0
*
0.836
=
1.30
* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.
Vardhman Polytex (BOM:514175) has a Altman Z-Score of 1.30 as of Jul. 07, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Vardhman Polytex and its competitors. According to the industry distribution chart, Vardhman Polytex ranks #824 out of 1025 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 80.4%.
Is Vardhman Polytex's Altman Z-Score too high?
Vardhman Polytex's current Altman Z-Score is 1.30. The Manufacturing - Apparel & Accessories industry median Altman Z-Score is 2.55. Vardhman Polytex's value of 1.30 is 49% below this industry median. Based on the distribution chart, Vardhman Polytex ranks #824 out of 1025 companies in the Manufacturing - Apparel & Accessories industry, which is in the bottom quartile relative to peers. Overall, Vardhman Polytex has a GF Score™ of 56/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Vardhman Polytex's Altman Z-Score compare to competitors?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Vardhman Polytex ranks #824 out of 1025 companies for Altman Z-Score. This places Vardhman Polytex in the lower half of its industry. The industry median Altman Z-Score is 2.55. Vardhman Polytex's value of 1.30 is 49% 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 Altman Z-Score for a Manufacturing - Apparel & Accessories company?
The median Altman Z-Score among Manufacturing - Apparel & Accessories companies is 2.55, based on 1,025 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Vardhman Polytex's current Altman Z-Score of 1.30 is 49% 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 Altman Z-Score mean?
A high Altman Z-Score can signal that a stock is expensive relative to its fundamentals. The Altman Z-score measures a company's bankruptcy risk. View historical data on Vardhman Polytex and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Altman Z-Score is 2.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vardhman Polytex's current Altman Z-Score is 1.30. 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 ₹5.03, compared to a current price of ₹6.77 — trading 34.6% above its estimated fair value. The current Altman Z-Score is 1.30 and 49% below the Manufacturing - Apparel & Accessories industry median of 2.55. Vardhman Polytex's overall GF Score™ is 56/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Altman Z-Score calculated?
Altman Z-Score is calculated from a company's financial statements. For Vardhman Polytex (BOM:514175), the current Altman Z-Score is 1.30 as of Jul. 07, 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 ₹6.77 is trading 34.6% above its estimated GF Value™ of ₹5.03.
GuruFocus considers Vardhman Polytex to be Significantly Overvalued.
Key valuation signals for BOM:514175:
Altman Z-Score: 1.30
GF Value™: ₹5.03 vs. price of ₹6.77 (34.6% above fair value)
Industry Position: 49% below the Manufacturing - Apparel & Accessories median (#824 of 1025)
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.
56GF Score
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