VTL - Technical Analysis with Chart Patterns & Indicators

Last Updated Time : 05 Nov 25, 7:43 am

Technical Rating: 3.7

📈 VTL is currently in a consolidation phase with mild bullish momentum and improving technical signals. Entry zone: ₹420–₹435; exit zone: ₹455–₹470. Watch for RSI crossing 60 and MACD expansion for breakout confirmation.

📊 Technical Overview

• Price Action: Trading at ₹435, above 50-DMA (₹424) but below 200-DMA (₹445), indicating short-term strength but medium-term resistance.
• RSI (59.0): Near bullish threshold, suggesting building momentum.
• MACD (6.29): Bullish crossover, confirming upward momentum.
• Bollinger Bands: Price near mid-band, indicating consolidation with breakout potential.
• Volume: Below 1-week average, showing subdued participation and limited conviction.
• Support Zones: ₹420 (S1), ₹410 (S2)
• Resistance Zones: ₹455 (R1), ₹470 (R2)

✅ Positive

• EPS of ₹28.5 supports valuation and earnings visibility.
• ROCE (10.7%) and ROE (8.86%) reflect stable operational efficiency.
• Price above 50-DMA and MACD crossover suggest short-term bullish setup.
• Low debt-to-equity ratio (0.15) ensures financial stability.

⚠️ Limitation

• Stock P/E (15.3) is below industry average (22.6), indicating cautious valuation.
• PEG ratio of -0.73 reflects weak earnings growth relative to valuation.
• Volume trends are weak, limiting breakout strength.
• Quarterly PAT declined from ₹202 Cr. to ₹189 Cr., a 13.8% drop.

📉 Company Negative News

• FII holdings declined (-0.28%), reflecting reduced foreign investor confidence.
• Sequential drop in PAT may signal margin or demand pressure.

📈 Company Positive News

• DII holdings increased (+1.25%), showing strong domestic institutional support.
• MACD and RSI trends suggest early signs of technical recovery.

🏢 Industry

• Textile and apparel sector benefits from festive demand and export tailwinds.
• Industry P/E of 22.6 reflects moderate valuation across peers.

🧭 Conclusion

• VTL is consolidating with mild bullish indicators and improving technical setup.
• Entry zone: ₹420–₹435; exit zone: ₹455–₹470 for short-term swing trades.
• Long-term investors may accumulate on dips, supported by stable fundamentals and sector resilience.