ICICI Direct has given Buy recommendation for Vardhman Textiles recommended buy rating on the stock with a target price of Rs 625 in its research r with a target price of Rs. 625 in its research report issued on Mar 24, 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 reduce debt by ~Rs 152 crore in FY21 (D/E: 0.3x in FY21). We expect D/E ratio to stay at ~0.3x in FY24E.

Outlook

We continue to remain structurally positive and maintain BUY rating. We value VTL at Rs 625 i.e. 11x FY24E earnings.

More Info

At 14:27 hrs Vardhman Textiles was quoting at Rs 537.05, up Rs 8.90, or 1.69 percent.

It has touched an intraday high of Rs 547.15 and an intraday low of Rs 519.00.

It was trading with volumes of 27,998 shares, compared to its thirty day average of 7,213 shares, an increase of 288.15 percent.

In the previous trading session, the share closed up 2.76 percent or Rs 14.18 at Rs 528.14.

The share touched its 52-week high Rs 576.00 and 52-week low Rs 224.01 on 21 January, 2022 and 23 April, 2021, respectively.

Currently, it is trading 6.76 percent below its 52-week high and 139.74 percent above its 52-week low.

Market capitalisation stands at Rs 15,513.44 crore.

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