⚠ 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: 3.6
| Stock Code | VTL | Market Cap | 15,812 Cr. | Current Price | 546 ₹ | High / Low | 560 ₹ |
| Stock P/E | 20.0 | Book Value | 340 ₹ | Dividend Yield | 0.91 % | ROCE | 10.7 % |
| ROE | 8.86 % | Face Value | 2.00 ₹ | DMA 50 | 501 ₹ | DMA 200 | 463 ₹ |
| Chg in FII Hold | -0.03 % | Chg in DII Hold | -0.09 % | PAT Qtr | 170 Cr. | PAT Prev Qtr | 189 Cr. |
| RSI | 62.2 | MACD | 15.4 | Volume | 4,77,077 | Avg Vol 1Wk | 6,94,931 |
| Low price | 383 ₹ | High price | 560 ₹ | PEG Ratio | -0.95 | Debt to equity | 0.15 |
| 52w Index | 92.0 % | Qtr Profit Var | -16.5 % | EPS | 27.3 ₹ | Industry PE | 20.5 |
📊 Financial Overview
- Revenue & Profitability: Quarterly PAT declined from 189 Cr. to 170 Cr. (-16.5%), showing earnings pressure. EPS at 27.3 ₹ remains decent.
- Margins & Returns: ROCE at 10.7% and ROE at 8.86% indicate modest efficiency, below industry leaders.
- Debt: Debt-to-equity ratio of 0.15 shows manageable leverage, balance sheet remains stable.
- Cash Flow: Supported by consistent operations, though profitability trend is weakening.
💹 Valuation
- P/E Ratio: 20.0 vs Industry PE of 20.5 → Fairly valued relative to peers.
- P/B Ratio: Current Price 546 ₹ vs Book Value 340 ₹ → Reasonable premium.
- PEG Ratio: -0.95 → Negative PEG suggests growth concerns.
- Intrinsic Value: Current price close to fair value, limited upside.
🏢 Business Model & Competitive Advantage
- Operates in textiles and manufacturing with established market presence.
- Strong asset base reflected in high book value.
- Moderate efficiency metrics limit competitive edge compared to peers.
📈 Technicals & Entry Zone
- RSI at 62.2 → Slightly overbought, caution advised.
- MACD positive (15.4) → Strong momentum, bullish trend.
- Entry Zone: Attractive accumulation between 500–520 ₹.
- Long-Term Holding: Suitable for moderate investors, but growth concerns remain.
✅ Positive
- Fair valuation compared to industry peers.
- Strong book value supports asset strength.
- Positive MACD indicates bullish momentum.
⚠️ Limitation
- ROCE and ROE are modest, limiting efficiency.
- Quarterly profit decline (-16.5%) raises concerns.
- Negative PEG ratio highlights weak growth prospects.
📉 Company Negative News
- Quarterly PAT fell from 189 Cr. to 170 Cr., showing earnings pressure.
- FII holdings decreased by 0.03% and DII holdings by 0.09%, reflecting reduced institutional confidence.
📈 Company Positive News
- 52-week performance up 92%, showing strong investor returns.
- MACD positive, indicating bullish momentum in the near term.
🏭 Industry
- Industry PE at 20.5 suggests sector trades at similar multiples.
- VTL is fairly valued, but efficiency metrics lag behind stronger peers.
🔎 Conclusion
VTL shows fair valuation with strong asset backing and bullish technical momentum. However, declining profitability and modest efficiency metrics limit long-term growth potential. Entry is favorable near 500–520 ₹ for investors seeking stability, but caution is advised due to weak growth indicators and reduced institutional support.