Varun Industries Ltd
Varun Industries Limited is an India-based manufacturer and exporter of stainless steel cookware, kitchenware, houseware and general merchandise. The Company operates in three segments: merchandise sale, petroleum oil rig hire and wind power. The Company owns wind power generation projects in Rajasthan and Tamil Nadu.
- Market Cap ₹ Cr.
- Current Price ₹ 1.61
- High / Low ₹ /
- Stock P/E
- Book Value ₹ 92.5
- Dividend Yield 0.00 %
- ROCE 6.98 %
- ROE -34.4 %
- Face Value ₹ 10.0
Pros
- Stock is trading at 0.02 times its book value
Cons
- Company has low interest coverage ratio.
- The company has delivered a poor sales growth of -28.8% over past five years.
- Company has a low return on equity of -10.6% over last 3 years.
- Earnings include an other income of Rs.281 Cr.
- Company has high debtors of 4,519 days.
- Working capital days have increased from 1,450 days to 4,144 days
* The pros and cons are machine generated. Pros / cons are based on a checklist to highlight important points. Please exercise caution and do your own analysis.
Peer comparison
Sector: Steel Industry: Steel - Medium / Small
Quarterly Results
Consolidated Figures in Rs. Crores / View Standalone
| Operating Profit |
| OPM % |
| Interest |
| Depreciation |
| Profit before tax |
| Tax % |
| EPS in Rs |
| Raw PDF |
Profit & Loss
Consolidated Figures in Rs. Crores / View Standalone
| Mar 2007 | Mar 2008 | Mar 2009 | Mar 2010 | Mar 2011 | Mar 2012 | Mar 2013 | |
|---|---|---|---|---|---|---|---|
| 929 | 1,021 | 1,434 | 1,956 | 3,540 | 4,022 | 186 | |
| 880 | 977 | 1,369 | 1,830 | 3,364 | 4,037 | 236 | |
| Operating Profit | 50 | 44 | 65 | 127 | 176 | -15 | -50 |
| OPM % | 5% | 4% | 5% | 6% | 5% | -0% | -27% |
| 19 | 42 | 31 | 24 | 18 | 9 | 281 | |
| Interest | 33 | 43 | 64 | 91 | 107 | 146 | 255 |
| Depreciation | 4 | 8 | 11 | 19 | 19 | 19 | 18 |
| Profit before tax | 32 | 35 | 22 | 41 | 68 | -172 | -43 |
| Tax % | 32% | 36% | 36% | 34% | 34% | 0% | -2% |
| 22 | 22 | 14 | 27 | 44 | -172 | -42 | |
| EPS in Rs | 14.81 | 9.92 | 6.08 | 11.23 | 14.42 | -54.56 | -15.27 |
| Dividend Payout % | 30% | 15% | 16% | 13% | 12% | 0% | 0% |
| Compounded Sales Growth | |
|---|---|
| 10 Years: | % |
| 5 Years: | -29% |
| 3 Years: | -54% |
| TTM: | -95% |
| Compounded Profit Growth | |
|---|---|
| 10 Years: | % |
| 5 Years: | % |
| 3 Years: | % |
| TTM: | -61% |
| Stock Price CAGR | |
|---|---|
| 10 Years: | -9% |
| 5 Years: | % |
| 3 Years: | % |
| 1 Year: | % |
| Return on Equity | |
|---|---|
| 10 Years: | % |
| 5 Years: | -4% |
| 3 Years: | -11% |
| Last Year: | -34% |
Balance Sheet
Consolidated Figures in Rs. Crores / View Standalone
| Mar 2007 | Mar 2008 | Mar 2009 | Mar 2010 | Mar 2011 | Mar 2012 | Mar 2013 | |
|---|---|---|---|---|---|---|---|
| Equity Capital | 13 | 22 | 22 | 22 | 29 | 29 | 29 |
| Reserves | 91 | 359 | 361 | 395 | 440 | 275 | 240 |
| 414 | 535 | 776 | 969 | 1,148 | 1,632 | 2,253 | |
| 55 | 90 | 101 | 233 | 919 | 914 | 328 | |
| Total Liabilities | 572 | 1,006 | 1,261 | 1,619 | 2,536 | 2,850 | 2,850 |
| 58 | 313 | 315 | 386 | 447 | 479 | 381 | |
| CWIP | 28 | 11 | 49 | 3 | 3 | 1 | 1 |
| Investments | 4 | 4 | 0 | 1 | 0 | 0 | 0 |
| 483 | 678 | 896 | 1,229 | 2,086 | 2,370 | 2,467 | |
| Total Assets | 572 | 1,006 | 1,261 | 1,619 | 2,536 | 2,850 | 2,850 |
Cash Flows
Consolidated Figures in Rs. Crores / View Standalone
| Mar 2007 | Mar 2008 | Mar 2009 | Mar 2010 | Mar 2011 | Mar 2012 | Mar 2013 | |
|---|---|---|---|---|---|---|---|
| 27 | 39 | 47 | 131 | 443 | -10 | -115 | |
| -24 | -53 | -40 | -37 | -28 | -28 | 282 | |
| -4 | 22 | -9 | -84 | -136 | -144 | -296 | |
| Net Cash Flow | -2 | 8 | -2 | 10 | 279 | -182 | -129 |
Ratios
Consolidated Figures in Rs. Crores / View Standalone
| Mar 2007 | Mar 2008 | Mar 2009 | Mar 2010 | Mar 2011 | Mar 2012 | Mar 2013 | |
|---|---|---|---|---|---|---|---|
| Debtor Days | 115 | 137 | 155 | 163 | 162 | 184 | 4,519 |
| Inventory Days | 30 | 41 | 29 | 21 | 12 | 8 | 84 |
| Days Payable | 10 | 17 | 13 | 36 | 90 | 76 | 548 |
| Cash Conversion Cycle | 136 | 161 | 171 | 147 | 83 | 117 | 4,056 |
| Working Capital Days | 156 | 192 | 190 | 175 | 87 | 118 | 4,144 |
| ROCE % | 11% | 8% | 10% | 11% | 4% | 7% |