Vardhman Textile (VTL)

FairStock Score: 61/100 — STEADY

Score breakdown: P/E: 2/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Fellow investor, at ₹590.60 and a market cap of ₹17,096 Cr, Vardhman Textile asks me to pay up for a steady but cyclical textile business. The balance sheet is the best part: debt/equity is just 0.18, free cash flow is ₹752 Cr, promoter holding is 64.44%, Piotroski F-Score is 7/9, and Altman Z-Score is 2.66. Those are signs of financial prudence. But quality of business is only moderate: ROE is 8.06% and ROCE is 10.83%, not the high returns I want in a moat. Growth is mixed. Sales growth of 12.70% and profit growth of 41.38% look strong, while latest quarter sales were ₹2,505 Cr and net profit ₹169 Cr. Yet the five-year revenue CAGR is only 7.76%, so I cannot treat this as a fast grower. Valuation is the real hurdle. P/E is 19.84 and P/B is 1.60 against book value of ₹369.41, which are not wild by themselves. However, the Graham Number is ₹460.94, meaning the stock trades at a -17.70% margin of safety. DCF intrinsic value is ₹69.36, and PEG of 7.24 plus EV/EBITDA of 77.90 suggest the market already expects a lot. Dividend yield of 0.85% gives little consolation. The 52-week range of ₹385.50–₹688.00 shows how volatile sentiment can be. With a FairStock Score of 61/100, STEADY, I would watch, not buy. I want either a price nearer Graham Number or evidence that ROE and ROCE are improving before calling it a value investment.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer