VTL - Swing Trade Analysis with AI Signals

Last Updated Time : 19 Sept 25, 2:15 pm

Swing Trade Rating: 3.6

🧵 VTL Swing Trade Analysis

VTL (likely referring to Vardhman Textiles Ltd.) presents a moderately favorable swing trade setup. While valuation is attractive and technical indicators are stabilizing, weak earnings momentum and low volume suggest a cautious approach.

✅ Strengths

Valuation & Fundamentals

P/E: 14.8 vs Industry PE: 22.8 — undervalued relative to peers.

EPS: ₹29.5 — solid earnings base.

ROCE: 10.7% / ROE: 8.86% — modest but stable capital efficiency.

Debt-to-Equity: 0.13 — low leverage.

Dividend Yield: 1.15% — decent income support.

FII Sentiment Positive: Foreign institutions increased holdings by 0.28%.

Technical Positioning

MACD: 1.19 — bullish crossover, indicating upward momentum.

RSI: 52.8 — neutral-to-bullish zone.

Price Near DMA 50 & 200: Current price ₹436 is just below DMA 50 (₹437) and DMA 200 (₹455), offering a potential breakout setup.

⚠️ Weaknesses

Quarterly PAT Decline: ₹229 Cr. → ₹202 Cr. — down 11.1%, signaling earnings pressure.

Volume Drop: Current volume is ~45% below 1-week average, indicating reduced interest.

PEG Ratio: -0.70 — negative, suggesting growth doesn’t justify valuation.

DII Sentiment Negative: Domestic institutions reduced holdings by 0.14%.

52W Index: 36.8% — mid-range, indicating moderate recovery.

🎯 Trade Strategy

Optimal Entry Price: ₹430–₹435

Enter near 50 DMA if MACD continues to rise and volume picks up.

Exit Plan (If Holding)

Target Exit: ₹455–₹470

Conservative target near 200 DMA and short-term resistance.

Stop Loss: ₹415

Below recent support to manage downside risk.

VTL is a fair swing candidate for traders who can manage short-term volatility and monitor volume recovery. Let me know if you'd like to compare it with other textile or mid-cap industrial stocks.

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