ICICI Direct has given Buy recommendation for Vardhman Textiles with a target price of Rs. 2240 in its research report issued on Aug 03, 2021

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 a further debt reduction of ~Rs 450 crore over the next two years to result in a D/E of ~0.2x in FY23E


We continue to remain structurally positive and maintain BUY rating We value VTL at Rs 2240 i.e. 10x FY23E earnings


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