1. At a Glance
A sleepy investment company sitting on ₹4,077 Cr worth of assets — trading at a discount so deep it makes outlet malls jealous. Vardhman Holdings Ltd (VHL) is your classic Benjamin Graham wet dream: dirt-cheap, almost debt-free, and misunderstood by 99% of the market.
2. Introduction with Hook
Imagine stumbling upon a mansion being sold at the price of a tent… with a gold vault inside. That’s Vardhman Holdings Ltd. While retail chases overvalued PE-ridden stories, this quiet NBFC is trading at just 0.37x its book value, with ₹4,077 Cr in investments and a market cap of ₹1,307 Cr.
Key Stat 1: Stock P/E of just 5.07
Key Stat 2: Book Value per Share is a jaw-dropping ₹11,093
So why isn’t everyone buying it? Because, well, it’s boring. And boring makes you rich.
3. Business Model (WTF Do They Even Do?)
VHL is a Non-Deposit Taking Systemically Important NBFC (that’s finance-speak for “we don’t touch your money, just multiply ours”). It makes money by:
- Investing in listed equities, bonds, and real estate
- Rotating portfolio dynamically based on market outlook
- Sitting on its assets and letting compounding do the work
It does not lend like a traditional NBFC (think Bajaj Finance). Instead, it’s more of a holding company + investment trust hybrid.
4. Financials Overview
Profit & Loss (₹ Cr)
| Year | Sales | Other Income | Net Profit | EPS (₹) |
|---|---|---|---|---|
| FY21 | 20 | 116 | 130 | 405.8 |
| FY22 | 33 | 429 | 429 | 1,344.4 |
| FY23 | 6 | 223 | 228 | 715.7 |
| FY24 | 15 | 184 | 185 | 579.3 |
| FY25 | 23 | 256 | 258 | 808.4 |
- Majority of income is non-operating – think dividends, stock gains
- Operating revenue is negligible = classic holding co problem
- But net profits are consistent and sizable for its scale
5. Valuation
Let’s get to the masala:
- Market Cap: ₹1,307 Cr
- Investments as per latest filings: ₹4,077 Cr
- Book Value: ₹11,093/share
- CMP: ₹4,114
Fair Value Range Estimate:
| Methodology | FV Range |
|---|---|
| NAV-based (30–50% discount) | ₹7,500 – ₹10,000 |
| PE-based (8–10x normalized earnings) | ₹6,000 – ₹8,000 |
| SoTP-based (realization of long-term investment value) | ₹8,000 – ₹11,000 |
Verdict: It’s priced like an old Ambassador, but houses a Rolls-Royce garage inside.
6. What’s Cooking – News, Triggers, Drama
- No flashy announcements, no “AI pivot” – just steady NAV growth
- Every quarter throws up ₹50–70 Cr in profits from market moves
- If India sees a bull run, VHL’s portfolio NAV surges
- Possible re-rating if transparency or dividend payouts improve
Only drama: Retail investors ignoring it like it’s a long WhatsApp forward
7. Balance Sheet
Balance Sheet Snapshot (₹ Cr)
| Item | FY25 |
|---|---|
| Equity Capital | 3 |
| Reserves | 3,537 |
| Total Assets | 3,541 |
| Borrowings | 0 |
| Investments | 3,528 |
| Fixed Assets | 3 |
Key Takeaways
- Zero debt
- 98% of total assets = investments
- Ridiculously clean and simple balance sheet
8. Cash Flow – Sab Number Game Hai
Cash Flow (₹ Cr)
| Year | CFO | CFI | CFF | Net Cash Flow |
|---|---|---|---|---|
| FY21 | 82 | -10 | -0 | 72 |
| FY22 | -5 | -69 | -2 | -75 |
| FY23 | 1 | 2 | -2 | 2 |
| FY24 | -3 | 4 | -2 | -0 |
| FY25 | -6 | 5 | -2 | -2 |
- Cash flows are volatile due to portfolio reshuffling
- Still, negligible cash burn and no debt = financially comfy
9. Ratios – Sexy or Stressy?
Key Ratios
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE | 8% | 6% | 8% |
| ROE | 8% | 6% | 8% |
| Debt/Equity | 0 | 0 | 0 |
| Working Capital Days | 569 | 236 | 96 |
- ROE is low, yes. But hey, it’s a holding co – that’s expected
- Working capital has drastically improved = leaner operations
- Dividend payout is a joke (1%) but adds optionality if increased
10. P&L Breakdown – Show Me the Money
| Year | Sales | Operating Profit | Other Income | PAT |
|---|---|---|---|---|
| FY25 | 23 | 17 | 256 | 258 |
- Almost all profit is from “other income” – smart investing
- Operating business is non-existent, and that’s not a bug – it’s a feature
11. Peer Comparison
| Company | P/E | ROE % | CMP/BV | Market Cap (₹ Cr) |
|---|---|---|---|---|
| Tata Investment | 107 | 1.02 | 0.92 | 33,420 |
| JSW Holdings | 125 | 0.69 | 0.61 | 24,645 |
| Mah. Scooters | 94 | 0.61 | 0.55 | 16,593 |
| Vardhman Holding | 5.07 | 7.55 | 0.37 | 1,307 |
Underrated King: VHL has the lowest PE, highest ROE, and still trades cheapest to book. Logic.exe not found.
12. Miscellaneous – Shareholding, Promoters
| Shareholder Type | Jun 2025 |
|---|---|
| Promoters | 74.90% |
| FIIs | 0.06% |
| DIIs | 0.06% |
| Public | 24.98% |
- Promoters hold tight control – don’t expect activist drama
- Increase in public shareholding over last 4 quarters
- 11,239 shareholders – a cult more than a crowd
13. EduInvesting Verdict™
Vardhman Holdings is what happens when the market ghost-zones a fundamentally bulletproof investment company. Sitting on ₹4,077 Cr in assets, with no debt, regular profits, and a 70% discount to intrinsic value — this is a compounder disguised as a coma patient.
No buy/sell advice. But if you love patience, value, and the thrill of being the smartest one in the room… well, you already know.
Metadata
– Written by EduInvesting Research Team | 17 July 2025
– Tags: Vardhman Holdings, NBFC, Value Stock, Holding Company, Undervalued Stocks, Hidden Gems India, Deep Discount Stocks
