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 ~0.2x in FY24E.
Outlook
We maintain HOLD recommendation on the stock. We value VTL at Rs 355 i.e. 8x FY24E earnings.
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