VTL - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 3.9

📊 Core Financials Breakdown

Profitability

ROCE: 10.7% and ROE: 8.86% — moderate, indicating decent but not exceptional capital efficiency.

EPS: ₹29.5, with PAT declining from ₹229 Cr. to ₹202 Cr. — a 11.1% drop, suggesting margin pressure or cyclical softness.

Debt-to-equity: 0.13 — low leverage, a positive for financial stability.

Dividend Yield: 1.15% — modest, adds passive income potential.

Institutional Sentiment

FII holdings increased (+0.28%), while DII holdings declined (-0.14%) — mixed sentiment, possibly reflecting short-term caution.

💰 Valuation Metrics

Metric Value Insight

P/E Ratio 14.8 Attractive vs. industry average (22.8) — suggests undervaluation.

P/B Ratio ~1.32 Reasonable — priced close to book value.

PEG Ratio -0.70 Negative — indicates earnings contraction or inconsistent growth.

Intrinsic Value ~₹420–₹440 (est.) Current price of ₹436 is near fair value.

🧠 Business Model & Competitive Edge

Core Operations: Vardhman Textiles Ltd. (VTL) is a leading manufacturer of yarns, fabrics, and garments, serving both domestic and export markets.

Strengths

Integrated operations from spinning to weaving.

Strong export footprint and long-standing industry relationships.

Low debt and consistent dividend policy.

Challenges

Recent profit contraction and weak PEG ratio.

RSI at 52.8 — neutral, MACD at 1.19 — mild bullish momentum.

📈 Entry Zone & Technicals

DMA 50: ₹437, DMA 200: ₹455 — price is hovering near short-term average, below long-term.

RSI: 52.8 — neutral zone.

MACD: 1.19 — mild bullish crossover.

📌 Entry Zone: ₹410–₹430 — ideal for accumulation on dips.

🕰️ Long-Term Holding Guidance

2025 Target: ₹470–₹520

2026–2028 Target: ₹580–₹650

2030 Target: ₹750+

Holding Strategy: VTL is a stable mid-cap textile play with strong fundamentals, low debt, and export-driven growth. Suitable for long-term investors seeking exposure to India’s manufacturing and global apparel supply chain. Accumulate during technical weakness and hold through cycles.

You can explore Trendlyne’s VTL dashboard for updated financials and StockPriceArchive’s long-term forecast for technical targets

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