Vardhman Holdings Adjusts Valuation Grade Amid Strong Performance in NBFC Sector

Vardhman Holdings, a small-cap player in the Non-Banking Financial Company (NBFC) sector, has recently undergone a valuation adjustment. The company's financial metrics reveal a PE ratio of 4.98 and a price-to-book value of 0.36, indicating a potentially favorable valuation relative to its market position. The EV to EBITDA stands at 77.26, while the PEG ratio is noted at 0.24, suggesting a unique profile within its industry.
In comparison to its peers, Vardhman Holdings presents a more attractive valuation, particularly when contrasted with companies like Indus Inf. Trust and Indostar Capital, which are positioned at higher valuation levels. Additionally, Vardhman’s dividend yield is modest at 0.12%, and its return on equity (ROE) is recorded at 7.29%.

Over the past year, Vardhman Holdings has shown a stock return of 26.76%, outperforming the Sensex's return of 6.64%. This performance, alongside its valuation metrics, highlights its competitive stance within the NBFC sector, especially when compared to peers that exhibit higher valuation ratios.