Buy Vardhman Textiles; target of Rs 2240: ICICI Direct

ICICI Direct is bullish on Vardhman Textiles has recommended buy rating on the stock with a target price of Rs 2240 in its research report dated August 03, 2021.

buy_98315393

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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

Outlook

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

For all recommendations report, click here

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