ICICI Direct has given Hold recommendation for Vardhman Textiles with a target price of Rs. 300 in its research report issued on Jul 26, 2022

ICICI Direct’s research report on Vardhman Textiles

Vardhman Textiles (VTL) (earlier known as Mahavir Spinning) is part of the Vardhman Group, a large textile conglomerate with a presence across the textile value chain. Vardhman is among few textile companies that have been able to maintain a debt equity ratio below one despite continuous capacity addition • Healthy cash flows have enabled VTL to maintain reasonable debt levels. We expect the D/E ratio to stay at ~0.3x in FY24E.


We downgraded the stock from BUY to HOLD in our sector update released on 20th June 2022 and maintain HOLD recommendation on the stock. We value VTL at Rs 300 i.e. 7x FY24E earnings.

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