VTL - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:02 am

Swing Trade Rating: 3.9

📊 VTL shows fair fundamentals with a reasonable P/E (15.8 vs industry 19.1), strong book value (340 ₹), and a modest dividend yield (1.09%). Technically, the stock is trading slightly above both 50 DMA (437 ₹) and 200 DMA (445 ₹), indicating mild bullish momentum. RSI at 58 is neutral, leaving room for upside. However, ROCE (10.7%) and ROE (8.86%) are modest, and quarterly profit has declined (-13.8%).

✅ Optimal Entry Price: Around 440–445 ₹ (near DMA support)

🚪 Exit Strategy (if already holding): Consider exit near 500–510 ₹ (resistance zone), or if RSI crosses 70 (overbought).

Positive

• 📈 Reasonable P/E (15.8) compared to industry average (19.1), suggesting fair valuation.
• 💰 Strong book value (340 ₹) provides margin of safety.
• 💹 Dividend yield (1.09%) adds shareholder return.
• 📉 Price above DMA 50 & DMA 200 confirms bullish technical setup.

Limitation

• ⚠️ Modest ROCE (10.7%) and ROE (8.86%) reflect average efficiency.
• 📉 Quarterly profit decline (-13.8%) raises earnings concerns.
• 📊 Negative PEG (-0.75) suggests weak growth prospects.
• 📉 Volume slightly below average (1.16L vs 1.24L) indicates limited participation.

Company Negative News

• 📉 FII holding decreased (-0.28%), showing reduced foreign investor confidence.
• 📉 DII holding decreased (-0.15%), reflecting weaker domestic institutional support.

Company Positive News

• 📈 Stable PAT at 189 Cr. despite sequential decline, showing resilience.
• 💹 Dividend payout continues, supporting investor sentiment.

Industry

• 🏭 Industry P/E at 19.1 is slightly higher, suggesting peers trade at richer valuations.
• 📊 Sector outlook remains steady, though growth momentum is moderate.

Conclusion

⚖️ VTL is a moderate swing trade candidate. Entry near 440–445 ₹ offers margin of safety, while exit near 500–510 ₹ is prudent. Fundamentals are fair, but declining profits and modest efficiency limit upside. Traders should maintain strict stop-loss discipline and monitor earnings trend closely.

Would you like me to extend this into a peer benchmarking overlay so you can see how VTL compares against other textile and manufacturing peers for relative strength and valuation positioning?