⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
VTL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.5
| Stock Code | VTL | Market Cap | 13,079 Cr. | Current Price | 452 ₹ | High / Low | 540 ₹ |
| Stock P/E | 16.6 | Book Value | 340 ₹ | Dividend Yield | 1.11 % | ROCE | 10.7 % |
| ROE | 8.86 % | Face Value | 2.00 ₹ | DMA 50 | 428 ₹ | DMA 200 | 440 ₹ |
| Chg in FII Hold | -0.03 % | Chg in DII Hold | -0.09 % | PAT Qtr | 170 Cr. | PAT Prev Qtr | 189 Cr. |
| RSI | 65.2 | MACD | -1.95 | Volume | 17,08,935 | Avg Vol 1Wk | 23,35,137 |
| Low price | 361 ₹ | High price | 540 ₹ | PEG Ratio | -0.79 | Debt to equity | 0.15 |
| 52w Index | 51.0 % | Qtr Profit Var | -16.5 % | EPS | 27.3 ₹ | Industry PE | 17.6 |
📊 Core Financials
- Revenue & Profitability: Quarterly PAT declined from 189 Cr. to 170 Cr. (-16.5%), showing short-term earnings pressure.
- Margins & Returns: ROCE at 10.7% and ROE at 8.86% indicate modest efficiency compared to peers.
- Debt Ratios: Debt-to-equity at 0.15 reflects manageable leverage.
- Cash Flows: Stable earnings history, but recent profit decline raises caution on sustainability.
💹 Valuation Indicators
- P/E Ratio: 16.6 vs industry average of 17.6 → fairly valued.
- P/B Ratio: Current Price / Book Value ≈ 1.33 → near intrinsic value.
- PEG Ratio: -0.79 → negative, suggesting weak growth outlook relative to valuation.
- Intrinsic Value: Current price (452 ₹) appears reasonable, but growth concerns limit upside.
🏢 Business Model & Competitive Advantage
- Operates in textiles and apparel, a cyclical industry sensitive to demand and exports.
- Strong asset base (high book value) provides stability.
- Dividend yield of 1.11% adds shareholder value, though growth remains modest.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between 420 ₹ – 440 ₹, near DMA support levels.
- Long-Term Holding: Suitable for conservative investors seeking value, but limited growth prospects suggest cautious allocation.
✅ Positive
- Fair valuation compared to industry peers.
- Strong book value (340 ₹) relative to current price.
- Dividend yield of 1.11% provides steady income.
⚠️ Limitation
- Decline in quarterly PAT (-16.5%) indicates earnings pressure.
- ROCE and ROE are modest, limiting efficiency appeal.
- Negative PEG ratio highlights weak growth outlook.
📉 Company Negative News
- Stock trading below 200 DMA (440 ₹), showing weak long-term momentum.
- Decline in both FII (-0.03%) and DII (-0.09%) holdings reflects reduced institutional confidence.
- MACD at -1.95 suggests bearish technical signals.
📈 Company Positive News
- RSI at 65.2 indicates near-term bullish momentum.
- Strong trading volumes show active investor interest.
🏭 Industry
- Industry P/E at 17.6 suggests sector trades at similar multiples.
- Textile sector remains cyclical, influenced by global demand and raw material costs.
- VTL trades close to industry average, reflecting fair valuation but limited growth premium.
🔎 Conclusion
VTL is fairly valued with strong asset backing and dividend yield, but modest efficiency ratios and declining profits limit growth potential. Entry is advisable near 420 ₹ – 440 ₹ for long-term investors seeking value exposure. Overall, the company offers stability but lacks strong growth drivers, making it more suitable for conservative portfolios.
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