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Vardhman Textiles Limited
(VTL)
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Rating:61Neutral
Price Target:
₹559.00
▲(31.34% Upside)
Action:Reiterated
Date:08/09/26
The score is primarily supported by a conservatively levered balance sheet and improved 2026 revenue momentum, but is held back by inconsistent cash generation (including negative free cash flow in 2026) and currently weak-to-neutral technical momentum (below key short-term moving averages with a negative MACD). Valuation appears reasonable rather than compelling, with only a modest dividend yield.
Positive Factors
Conservative Balance Sheet
Low leverage and steadily growing equity provide VTL with financial resilience through textile cycles. This reduces balance-sheet strain, preserves borrowing capacity for productive investment, and gives the company a stronger cushion when industry pricing or demand weakens.
Negative Factors
Uneven Cash Generation
Inconsistent operating cash flow and renewed negative free cash flow weaken the quality and predictability of earnings conversion. This may limit internally funded expansion, increase reliance on working-capital management, and reduce flexibility during periods of softer textile demand.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Low leverage and steadily growing equity provide VTL with financial resilience through textile cycles. This reduces balance-sheet strain, preserves borrowing capacity for productive investment, and gives the company a stronger cushion when industry pricing or demand weakens.
Read all positive factors
Vardhman Textiles Limited (VTL) vs. iShares MSCI India ETF (INDA)
Market Cap
₹153.40B
Dividend Yield0.94%
Average Volume (3M)68.42K
Price to Earnings (P/E)17.8
Beta (1Y)0.83
Revenue Growth3.29%
EPS Growth-1.43%
CountryIN
Employees24,097
SectorGeneral
Sector StrengthN/A
IndustryManufacturing - Textiles
Share Statistics
EPS (TTM)29.79
Shares Outstanding289,576,800
10 Day Avg. Volume21,584
30 Day Avg. Volume68,421
Financial Highlights & Ratios
PEG Ratio-1.28
Price to Book (P/B)1.42
Price to Sales (P/S)1.51
P/FCF Ratio-23.67
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)42.36
Revenue Forecast (FY)₹113.64B
Vardhman Textiles Limited Business Overview & Revenue Model
Company Description
Vardhman Textiles Limited is a vertically integrated textile manufacturer engaged in producing cotton yarn, synthetic yarn, woven fabric, sewing thread, acrylic fibre, and garments. The company operates across the textile value chain, from raw mat...
How the Company Makes Money
VTL primarily makes money by manufacturing and selling textile intermediates—most notably yarn and fabric—to other businesses (e.g., garment manufacturers, fabric processors, exporters, and brands’ supplier ecosystems). Its revenue model is largel...
Vardhman Textiles Limited Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
78
Positive
Cash Flow
52
Neutral
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 101.86B | 98.69B | 97.85B | 95.05B | 101.37B | 96.22B |
| Gross Profit | 39.33B | 44.23B | 40.42B | 35.73B | 39.11B | 47.98B |
| EBITDA | 16.44B | 15.12B | 13.20B | 10.37B | 13.81B | 23.11B |
| Net Income | 8.48B | 7.45B | 8.83B | 6.32B | 7.95B | 15.47B |
Balance Sheet | ||||||
| Total Assets | 0.00 | 138.66B | 124.32B | 119.81B | 113.33B | 109.79B |
| Cash, Cash Equivalents and Short-Term Investments | 10.90B | 10.90B | 5.52B | 2.80B | 15.15B | 7.23B |
| Total Debt | 0.00 | 18.55B | 12.39B | 17.91B | 16.78B | 19.88B |
| Total Liabilities | -105.88B | 32.78B | 24.66B | 27.93B | 26.81B | 31.38B |
| Stockholders Equity | 105.88B | 105.14B | 98.96B | 91.00B | 85.63B | 77.04B |
Cash Flow | ||||||
| Free Cash Flow | -2.10B | -6.30B | 6.11B | -13.39B | 12.31B | 9.26B |
| Operating Cash Flow | 7.16B | 11.08B | 16.44B | -10.55B | 18.53B | 14.45B |
| Investing Cash Flow | -7.75B | -15.16B | -8.92B | 11.04B | -14.45B | -8.99B |
| Financing Cash Flow | 631.90M | 3.98B | -7.33B | -897.10M | -3.99B | -5.71B |
Vardhman Textiles Limited Technical Analysis
Negative
425.60
Price Trends
582.69
Negative
602.27
Negative
550.99
Negative
Market Momentum
-14.66
Positive
35.70
Neutral
11.73
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:VTL, the sentiment is Negative. The current price of 425.6 is below the 20-day moving average (MA) of 563.19, below the 50-day MA of 582.69, and below the 200-day MA of 550.99, indicating a bearish trend. The MACD of -14.66 indicates Positive momentum. The RSI at 35.70 is Neutral, neither overbought nor oversold. The STOCH value of 11.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:VTL.
Vardhman Textiles Limited Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | ₹145.49B | 33.93 | ― | 0.84% | 15.21% | 12.58% | |
63 Neutral | ₹366.29B | 40.01 | ― | 0.47% | 4.20% | 10.65% | |
61 Neutral | ₹153.40B | 17.79 | ― | 0.94% | 3.29% | -1.43% | |
61 Neutral | ₹87.94B | 58.37 | ― | 0.34% | 5.30% | -26.76% | |
56 Neutral | ₹113.13B | 28.51 | ― | 2.25% | -2.45% | -10.11% | |
56 Neutral | ₹225.84B | 82.64 | ― | 0.04% | -3.26% | -48.71% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
IN:VTL
Vardhman Textiles Limited
529.75
129.35
32.30%
IN:ARVIND
Arvind Limited
534.80
242.34
82.86%
IN:ICIL
Indo Count Industries Limited
444.00
179.50
67.86%
IN:KPRMILL
K.P.R. Mill Limited
1,071.60
11.78
1.11%
IN:TRIDENT
Trident Limited
22.20
-5.64
-20.26%
IN:WELSPUNLIV
Welspun Living Limited
239.05
124.62
108.90%
Vardhman Textiles Limited Corporate Events
Vardhman Textiles Closes Trading Window Ahead of September Results
Sep 29, 2026
Vardhman Textiles Limited, based in Ludhiana, Punjab, operates in the textile industry with a diversified portfolio spanning yarns, fabrics, garments, threads, fibres and steels. Established in 1965, the company focuses on delivering excellence ac...
Vardhman Textiles Sets Record Date and Book Closure for FY26 Dividend
Aug 20, 2026
Vardhman Textiles Limited has set 28 August 2026 as the record date to determine shareholders eligible for a dividend for the financial year ended 31 March 2026, subject to approval at the upcoming Annual General Meeting. If the dividend is declar...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.