VTL - Swing Trade Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Swing Trade Rating: 2.5

📊 Analysis Summary

Vardhman Textiles Ltd (VTL) is currently in a technical downtrend with weak momentum indicators and declining quarterly profits. Although the stock is fundamentally undervalued and financially stable, the lack of bullish signals makes it a low-conviction swing trade at this stage.

✅ Strengths

P/E: 15.6 vs Industry PE: 27.8

Undervalued — attractive from a valuation perspective.

EPS: ₹29.5

Strong earnings base — supports long-term value.

Debt to Equity: 0.13

Low leverage — financially sound.

FII Holding ↑ 0.28%

Mild foreign interest — potential support.

Book Value: ₹342 vs CMP ₹460

Reasonable premium — not overpriced.

⚠️ Weaknesses

RSI: 33.3

Near oversold — weak momentum, no reversal yet.

MACD: –4.85

Bearish crossover — confirms downward trend.

Trading Below DMA 50 & 200 (₹485 & ₹470)

Technically weak — trend is negative.

Quarterly PAT Decline: –13.1%

Earnings contraction — short-term headwind.

PEG Ratio: –0.92

Negative PEG — poor growth outlook.

Volume: 1.24L vs Avg 2.21L

Weak participation — low conviction.

52W Index: 42.8%

Far from yearly high — weak relative strength.

🎯 Optimal Entry Price

Entry Zone: ₹440–₹450

Near support zone — only enter if RSI rises above 45 and MACD flattens.

🚪 Exit Strategy (If Already Holding)

Exit Target: ₹480–₹490

Near DMA 50 — good level to book profits on bounce.

Stop Loss: ₹425

Below recent support — protects against further downside.

Would you like to explore textile or mid-cap manufacturing stocks with stronger technical setups and earnings momentum for swing trading?

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