Overall Fundamental outlook

Business Operations:

Sector: Consumer Cyclical
Industry: Textile Manufacturing

Vardhman Textiles Limited, together with its subsidiaries, manufactures, purchases, and sells textiles and fibres in India and internationally. The company offers yarns, fabrics, acrylic fibers, threads, and garments. It also provides specialized greige and dyed yarns in cotton, polyester, acrylic, viscose, specialized fibers, and various blends; fabrics, such as piece dyed, yarn dyed, printed, fiber blends, weaved, and specialty finishes. In addition, the company is involved in lending and investing activities; and the manufacture and sale of hot rolled bars, and special and alloy steel products, including carbon steel, case hardening steel, through hardening steel, and other products for automotive, engineering, bearing, and allied industries. It also exports its products. The company was formerly known as Mahavir Spinning Mills Limited and changed its name to Vardhman Textiles Limited in September 2006. Vardhman Textiles Limited was founded in 1965 and is based in Ludhiana, India.

Revenue projections:

Revenue projections for VTL
Revenue projections for VTL

With VTL's revenue expected to be lower than the previous year, investors may become cautious. Declining revenues often negatively impact the bottom line, reducing profitability and raising concerns among investors about the company's ability to maintain strong financial performance moving forward.

Financial Ratios:

currentRatio 5.254000
forwardPE 11.225974
debtToEquity 14.465000
earningsGrowth -0.051000
revenueGrowth -0.009000
grossMargins 0.412770
operatingMargins 0.088830
trailingEps 29.590000
forwardEps 39.700000

Vardhman Textiles Limited's current ratio being 5.254 suggests that the company has no issue servicing its short-term debt. Its strong liquidity position, supported by sufficient cash reserves and current assets, ensures that Vardhman Textiles Limited can meet its financial obligations with ease.
Vardhman Textiles Limited's Forward PE ratio is favorable, indicating that the stock price is well-positioned in relation to its earnings. It is not overpriced, leaving room for growth, which makes it a solid option for investors seeking both stability and future appreciation.
VTL's low Debt-to-Equity ratio means it is not excessively leveraged, implying a reduced financial risk profile. This suggests VTL maintains a well-balanced financial structure, with more emphasis on equity than debt, ensuring greater flexibility and long-term stability.
VTL's low earnings and revenue growth suggest shrinking profits. This negative trend could indicate that the company is struggling to maintain its financial performance and may face challenges ahead.
Vardhman Textiles Limited's negative gross and operating margins suggest that the company is experiencing losses at both the production and operational levels. This could point to inefficiencies or declining demand for its products.
With VTL's forward EPS higher than its trailing EPS, the company is expected to be more profitable in the current financial year. This signals confidence in VTL's growth potential, as improved earnings are forecasted compared to the prior year's performance.

Price projections:

Price projections for VTL
Price projections for VTL

Price projections for VTL have been revised downward over time, signaling decreasing optimism about the company's outlook. Analysts appear to be adjusting their expectations as concerns about future performance grow.

Recommendation changes over time:

Recommendations trend for VTL
Recommendations trend for VTL


Analysts are favoring VTL with a buy bias, highlighting the stock's potential as a solid investment. This recommendation might drive more investors to consider VTL as a secure and profitable option for their money, contributing to a broader positive sentiment in the market.