VTL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.5
| Stock Code | VTL | Market Cap | 17,704 Cr. | Current Price | 612 ₹ | High / Low | 621 ₹ |
| Stock P/E | 22.4 | Book Value | 340 ₹ | Dividend Yield | 0.82 % | ROCE | 10.7 % |
| ROE | 8.86 % | Face Value | 2.00 ₹ | DMA 50 | 542 ₹ | DMA 200 | 485 ₹ |
| Chg in FII Hold | -0.03 % | Chg in DII Hold | -0.33 % | PAT Qtr | 170 Cr. | PAT Prev Qtr | 189 Cr. |
| RSI | 74.0 | MACD | 19.1 | Volume | 4,22,896 | Avg Vol 1Wk | 6,72,076 |
| Low price | 383 ₹ | High price | 621 ₹ | PEG Ratio | -1.06 | Debt to equity | 0.15 |
| 52w Index | 96.3 % | Qtr Profit Var | -16.5 % | EPS | 27.3 ₹ | Industry PE | 20.2 |
📊 Financials: VTL shows moderate fundamentals with ROCE at 10.7% and ROE at 8.86%, reflecting weak efficiency. Debt-to-equity ratio of 0.15 indicates manageable leverage. EPS of ₹27.3 supports valuation, but quarterly PAT declined (₹189 Cr → ₹170 Cr, -16.5%), raising caution.
💹 Valuation: Current P/E of 22.4 is slightly above industry average (20.2), suggesting fair but stretched valuation. PEG ratio of -1.06 signals growth concerns. P/B ratio (~1.8) is reasonable relative to book value. Dividend yield of 0.82% provides modest income support.
🏢 Business Model & Advantage: VTL operates in textiles, benefiting from established market presence and export demand. Competitive advantage lies in scale and product diversification, though profitability metrics remain weak.
📈 Entry Zone: Ideal accumulation range is ₹500–₹540 (closer to DMA 200 support). Current price (₹612) is near 52-week high (₹621), limiting upside potential.
⏳ Long-Term Holding: Suitable for cautious 2–3 year horizon if efficiency improves. Partial profit booking advised near ₹615–₹620 resistance. Exit recommended if ROCE/ROE fail to improve meaningfully.
Positive
- Reasonable P/E (22.4) compared to industry average (20.2)
- Dividend yield of 0.82% provides modest income
- Debt-to-equity ratio of 0.15 indicates manageable leverage
- Strong 52-week return of 96.3% shows investor interest
Limitation
- Low ROCE (10.7%) and ROE (8.86%)
- Negative PEG ratio (-1.06) signals growth concerns
- Quarterly PAT decline (-16.5%) raises caution
- RSI at 74 indicates overbought conditions
Company Negative News
- Decline in quarterly PAT (₹189 Cr → ₹170 Cr)
- FII (-0.03%) and DII (-0.33%) holdings decreased, showing reduced institutional confidence
Company Positive News
- Strong 52-week performance (+96.3%)
- EPS of ₹27.3 supports valuation relative to industry peers
Industry
- Industry P/E at 20.2 indicates moderate sector valuation
- VTL trades slightly above industry average, reflecting investor optimism despite weak fundamentals
Conclusion
VTL is a moderate candidate for long-term investment with manageable debt and reasonable valuation, but weak efficiency metrics and declining profitability limit its attractiveness. New investors should wait for dips near ₹500–₹540 before entry. Existing holders may continue with a 2–3 year horizon but should book profits near resistance levels and exit if fundamentals fail to improve.