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Vardhman Textiles Limited
(VTL)
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Rating:66Neutral
Price Target:
₹695.00
▲(63.30% Upside)
Action:Reiterated
Date:05/09/26
Overall score reflects stable fundamentals with low leverage and renewed revenue momentum, offset by inconsistent cash generation (including negative free cash flow in 2026) and profit volatility. Technicals are supportive with a positive longer-term trend, while valuation is only average with a low dividend yield.
Positive Factors
Conservative balance sheet
Low and improving leverage (debt-to-equity near 0.18) and steady equity growth give Vardhman resilience through textile cycles. A conservative balance sheet reduces refinancing risk, supports cyclical working-capital needs and capex, and preserves flexibility for strategic investments over 2–6 months and beyond.
Negative Factors
Uneven cash generation
Recurrent negative free cash flow in 2026 after earlier recoveries highlights weak cash-conversion consistency. Volatile operating cash flow and periodic working-capital outflows constrain self-funded growth, limit buffer for shocks, and may force external financing during downturns, reducing financial resilience.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Low and improving leverage (debt-to-equity near 0.18) and steady equity growth give Vardhman resilience through textile cycles. A conservative balance sheet reduces refinancing risk, supports cyclical working-capital needs and capex, and preserves flexibility for strategic investments over 2–6 months and beyond.
Read all positive factors
Vardhman Textiles Limited (VTL) vs. iShares MSCI India ETF (INDA)
Market Cap
₹186.36B
Dividend Yield1.13%
Average Volume (3M)50.55K
Price to Earnings (P/E)24.3
Beta (1Y)0.79
Revenue Growth0.86%
EPS Growth-15.59%
CountryIN
Employees24,929
SectorGeneral
Sector StrengthN/A
IndustryManufacturing - Textiles
Share Statistics
EPS (TTM)26.19
Shares Outstanding289,475,800
10 Day Avg. Volume12,830
30 Day Avg. Volume50,547
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)42.83
Revenue Forecast (FY)₹113.05B
Vardhman Textiles Limited Business Overview & Revenue Model
Company Description
Headquartered in Ludhiana, India, and established in 1965, Vardhman Textiles Limited is a diversified manufacturer and global supplier of textile, fiber, and steel products. Its extensive market reach encompasses India, other Asian countries, the ...
How the Company Makes Money
VTL primarily makes money by manufacturing textile products and selling them to downstream customers (such as garment manufacturers, brands, retailers, and other fabric/yarn users) in India and export markets. Its key revenue streams typically inc...
Vardhman Textiles Limited Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
78
Positive
Cash Flow
52
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 98.69B | 97.85B | 95.05B | 101.37B | 96.22B |
| Gross Profit | 44.23B | 40.42B | 35.73B | 39.11B | 47.98B |
| EBITDA | 15.12B | 13.20B | 10.37B | 13.81B | 23.11B |
| Net Income | 7.45B | 8.83B | 6.32B | 7.95B | 15.47B |
Balance Sheet | |||||
| Total Assets | 138.66B | 124.32B | 119.81B | 113.33B | 109.79B |
| Cash, Cash Equivalents and Short-Term Investments | 10.90B | 5.52B | 2.80B | 15.15B | 7.23B |
| Total Debt | 18.55B | 12.39B | 17.91B | 16.78B | 19.88B |
| Total Liabilities | 32.78B | 24.66B | 27.93B | 26.81B | 31.38B |
| Stockholders Equity | 105.14B | 98.96B | 91.00B | 85.63B | 77.04B |
Cash Flow | |||||
| Free Cash Flow | -6.30B | 6.11B | -13.39B | 12.31B | 9.26B |
| Operating Cash Flow | 11.08B | 16.44B | -10.55B | 18.53B | 14.45B |
| Investing Cash Flow | -15.16B | -8.92B | 11.04B | -14.45B | -8.99B |
| Financing Cash Flow | 3.98B | -7.33B | -897.10M | -3.99B | -5.71B |
Vardhman Textiles Limited Technical Analysis
Positive
425.60
Price Trends
624.48
Positive
585.30
Positive
509.57
Positive
Market Momentum
6.06
Positive
53.01
Neutral
34.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:VTL, the sentiment is Positive. The current price of 425.6 is below the 20-day moving average (MA) of 644.12, below the 50-day MA of 624.48, and below the 200-day MA of 509.57, indicating a neutral trend. The MACD of 6.06 indicates Positive momentum. The RSI at 53.01 is Neutral, neither overbought nor oversold. The STOCH value of 34.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | ₹141.62B | 34.24 | ― | 1.18% | 11.70% | 17.01% | |
66 Neutral | ₹186.36B | 24.28 | ― | 1.13% | 0.86% | -15.59% | |
66 Neutral | ₹381.67B | 44.96 | ― | 0.52% | 4.11% | 6.30% | |
59 Neutral | ₹79.77B | 62.90 | ― | 0.74% | -0.24% | -48.94% | |
58 Neutral | ₹155.46B | 77.80 | ― | 1.25% | -10.87% | -68.10% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
54 Neutral | ₹128.88B | 34.22 | ― | 1.84% | -4.09% | 1.62% |
* General Sector Average
IN:VTL
Vardhman Textiles Limited
635.20
141.20
28.58%
IN:ARVIND
Arvind Limited
540.85
200.69
59.00%
IN:ICIL
Indo Count Industries Limited
398.00
90.41
29.39%
IN:KPRMILL
K.P.R. Mill Limited
1,138.90
-59.40
-4.96%
IN:TRIDENT
Trident Limited
25.32
-5.43
-17.66%
IN:WELSPUNLIV
Welspun Living Limited
166.35
26.73
19.15%
Vardhman Textiles Limited Corporate Events
Vardhman Textiles Highlights Investor Conference Participation and Compliance
May 29, 2026
Vardhman Textiles Limited reported that its management participated in the Trinity India 2026 Investor Conference in Mumbai, organized by 360 ONE Capital, where it met several analysts and institutional investors. The company emphasized that only ...
Vardhman Textiles to Engage Investors at Trinity India 2026 Conference
May 23, 2026
Vardhman Textiles has announced that its management will participate in the Trinity India 2026 investor conference organized by 360 ONE Capital in Mumbai on May 29, 2026, where it plans to meet several analysts and institutional investors. The com...
Vardhman Textiles Dematerializes 6,345 Equity Shares for April 2026
May 2, 2026
Vardhman Textiles Limited has reported to Indian stock exchanges that 6,345 equity shares were dematerialized in April 2026 under Securities and Exchange Board of India regulations. Following verification of the relevant share certificates, the ph...
Vardhman Group Opens One-Year SEBI-Mandated Window for Legacy Physical Share Transfers
Apr 30, 2026
Vardhman Textiles Limited has notified shareholders that, in line with a recent Securities and Exchange Board of India circular, it is opening a special one-year window from 5 February 2026 to 4 February 2027 to facilitate the transfer and demater...
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.