1. At a Glance – The “₹5 Crore Sales, ₹50 Crore Profit” Circus 🎪
Ladies and gentlemen, welcome to one of Dalal Street’s most confusing magic shows.
You have a company doing ₹5.76 crore quarterly sales… but casually dropping ₹53.7 crore profit like it’s pocket change. You think FMCG margins are high? This company is running OPM of ~91%, which makes even drug dealers look like low-margin operators.
And then comes the twist — market cap ₹1,013 crore vs investment portfolio ₹3,700+ crore. That’s like buying a house for ₹10 lakh and finding ₹30 lakh hidden in the cupboard.
But wait… plot twist.
Most of the earnings come from “Other Income” (~₹234 crore annually). Translation: the business itself is basically a chai stall, but the owner has invested in Reliance, HDFC, and maybe your neighbour’s startup.
So the real question is:
👉 Are you investing in a company… or just outsourcing your portfolio management to the Vardhman family?
2. Introduction – The NBFC That Doesn’t Feel Like an NBFC
Let’s be honest — when you hear “NBFC”, you expect:
- Loans
- Interest income
- Credit risk
- Collection agents chasing people
But Vardhman Holdings Ltd said:
“Too much hard work. Let’s just invest and chill.”
This is technically a Non-Deposit Taking Systemically Important NBFC, but in reality, it behaves more like:
👉 A family office disguised as a listed company
It doesn’t aggressively lend like Bajaj Finance.
It doesn’t chase MSME borrowers.
It doesn’t even try to look busy.
Instead, it quietly:
- Invests in equities
- Holds stakes in group companies
- Earns dividends
- Books gains when markets behave
And somehow ends up with ₹232 crore PAT on ₹14 crore revenue
Yes, you read that right.
This is not a typo. This is not a fraud (at least not proven 😏).
This is just how investment holding companies work.
But then comes the investor confusion:
👉 If earnings depend on markets… is this a business or just a leveraged bet on equities?
3. Business Model – WTF Do They Even Do?
Let’s simplify this like explaining to your friend who still thinks IPO means “Instant Paisa Opportunity”.
Core Business:
Revenue Sources:
- Interest income (~43%)
- Dividend income (~25%)
- Trading gains (~8%)
- License income (~24%)
So basically:
👉 They make money when:
- Companies pay dividends
- Markets go up
- Their investments perform
👉 They struggle when:
- Markets crash
- Dividends dry up
- Investments stagnate
This is not a business with:
- Factories
- Customers
- Products
It’s a balance sheet-driven company.
And the real star of the show?
👉 28.48% stake in Vardhman Textiles
Which means:
If Vardhman Textiles does well
