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Vardhman Textiles Limited (VTL) Fair Value & Analysis

Consumer Cyclical · IN · Market cap ₹190B (≈ $2.0B) · ISIN INE825A01020

What is Vardhman Textiles Limited really worth?

VT Vardhman Textiles Limited VTL · NSE
Price₹598.20
Fair Value₹787.55
Upside+31.7%
Quality51/100

A solid business, trading 24% below our fair value of ₹787.55.

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Risks

!Expensive Growth (revenue 5y +10.0 %/yr)
!Thin margins · 7.6% net margin
!Low debt · negative free cash flow
!Mixed vs. peers (6/13)
!Narrow moat 37/100
!Evidence only medium, so the estimate is less certain
!Weak on past: 29 out of 100
!Weak on dividend: 17 out of 100

For context

·0.84% dividend yield
Evidence: Medium Range ₹583.40 – ₹984.44

Fair value as of: Aug 30, 2026

From 16 valuation models · updated 6 days ago

Fair value updated Aug 30, 2026, revised from ₹437.53 to ₹787.55 (+80.0%) since Aug 13, 2026.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • Solid quality (51/100) at a price below fair value, the discount is the argument here, not the business quality.
  • The price sits in the lower half of our model range, the side with the larger margin of safety.
  • Read the verdict with care: some models are missing inputs, so the estimate scatters more than usual.

Price vs Fair Value (5 years)

₹666.25 ₹239.55 Fair Value ₹787.55 May 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 30, 2026.

How to read this chart

60‑month range ₹239.55 – ₹666.25 · fair‑value band ₹583.40 – ₹984.44 · the ₹598.20 price screens below the ₹787.55 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 30, 2026.

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Analysis

Vardhman Textiles Limited (VTL) currently trades at ₹598.20, while our model-based Fair Value estimate is ₹787.55, implying the stock looks roughly 24.0% undervalued today. The Quality Score stands at 51/100 (solid quality), in the Consumer Cyclical sector. Bull case: the Growth Earnings group reads highest at a median of ₹490.72 per share, and 0 of the 16 models we run sit above the ₹598.20 price. Bear case: the Earnings-Based group reads lowest at ₹154.57, and 16 of the 16 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, Vardhman Textiles Limited generated revenue of ₹98.7B at a net margin of 7.6%. Revenue declined 0.4% year over year. It earns a return on equity of 7.3%. Net debt stands at ₹17.7B. Fundamentals as of Aug 30, 2026

Our scenario range runs from ₹583.40 (bear case) to ₹984.44 (bull case); at ₹598.20, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat. The share trades about 11% below its 52-week high and 58% above its 52-week low, currently above its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at −36% fair-value upside, at 32%, VTL screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2026 figures, and about 5 months have passed since. In that time the company retained roughly ₹9.11 per share, which is 1.2 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Residual Income best evidence ₹294.63 ₹309.96 ₹333.83 76
EPV ₹148.70 ₹180.09 ₹207.56 74
ROIC Compounder ₹148.70 ₹180.09 ₹207.56 72
All 16 models by family
Earnings-Based
Graham-Dodd ₹175.18 ₹516.39 ₹682.95 65
Lynch FV ₹108.20 ₹154.57 ₹200.94 61
PEG = 1.0 ₹108.20 ₹154.57 ₹200.94 57
EPV ₹148.70 ₹180.09 ₹207.56 74
Dividend Discount
Gordon GGM ₹46.27 ₹96.21 ₹152.62 66
DDM Multi-Stage ₹46.27 ₹74.73 ₹100.97 66
Multiples
P/E Multiple ₹425.07 ₹566.77 ₹708.46 63
P/S Multiple ₹307.04 ₹409.39 ₹511.74 58
P/B Multiple ₹328.47 ₹437.96 ₹547.44 55
EV/EBIT ₹321.58 ₹441.99 ₹562.41 66
EV/EBITDA ₹345.69 ₹474.14 ₹602.59 67
EV/Revenue ₹203.84 ₹308.20 ₹412.56 53
Asset-Based
NCAV (Graham) ₹181.72 ₹243.51 ₹363.44 54
Economic Profit
Residual Income best evidence ₹294.63 ₹309.96 ₹333.83 76
ROIC Compounder ₹148.70 ₹180.09 ₹207.56 72
Growth Earnings
Growth-Adj P/E ₹343.50 ₹490.72 ₹637.93 67

Widest divergence: Growth Earnings (₹490.72) versus Dividend Discount (₹74.73). Highest evidence: Residual Income (76).

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Key figures & financial health

P/E ratio 22.9
P/S ratio 1.73 P/E × margin
EPS (TTM) ₹26.17 price ÷ EPS = P/E 22.9
Dividend yield 0.8% payout 19.1%
Net margin 7.6% FY2026
Return on equity 7.3% TTM
More key figures
Profitability
Return on assets (EBIT) 23.7% avg 5y
Operating margin 6.9% TTM
Growth
Revenue (TTM) ₹98.7B TTM
Revenue growth (YoY) −0.4% 3y avg −0.9%
EPS growth (YoY) −22.3%
Balance sheet & cash flow
Free cash flow −₹6.3B FY2026
Net debt ₹17.7B FY2026

Figures from reported company fundamentals · as of Aug 30, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 51/100

Of which business quality 52 · Market factors (momentum, volatility) 71

Profitability 45
Margins and returns on capital today
Quality Growth 44
Are margins and returns improving?
Cashflow 28
Earnings quality: real cash, not paper profit
Fin. Strength 70
Balance sheet, leverage, solvency risk
Investment 48
Disciplined investing over empire-building
Low Volatility 81
Calm price path (market factor)
Momentum 59
Price trend over the last 3–12 months (market factor)
52W Momentum 78
Distance to the 52-week high (market factor)
Net Issuance 81
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Vardhman Textiles Limited, together with its subsidiaries, manufactures, purchases, and sells textiles and fibres in India and internationally.

Full company description

Vardhman Textiles Limited, together with its subsidiaries, manufactures, purchases, and sells textiles and fibres in India and internationally. The company 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; acrylic fibers; and formal and casual shirts. It is also involved in lending and investing activities; and manufacturing and selling of hot rolled bars, and special and alloy steel products, including carbon steel, case hardening steel, hardening steel, and other products for automotive, engineering, bearing, and allied industries. 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.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Vardhman Textiles Limited reported revenue of ₹98.7B in FY2026 versus ₹96.2B in FY2022, a compound +0.6%/yr. Reported net income was ₹7.5B in FY2026, compounding −16.7%/yr from FY2022.

Growth Quality 49/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2026)
₹98.7B
Latest YoY
+0.9%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−0.9%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+10.0%
Avg. revenue growth/yr (21Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+8.2%
Value creation/yr (5Y, in INR) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+6.0% (5.2 + 0.8)
Revenue +0.6%/yr
FY22 ₹96.2B
FY23 ₹101B
FY24 ₹95.0B
FY25 ₹97.8B
FY26 ₹98.7B
Net income −16.7%/yr
FY22 ₹15.5B
FY23 ₹8.0B
FY24 ₹6.3B
FY25 ₹8.8B
FY26 ₹7.5B
Character of growth · EPS growth decomposed (2015-2026) +2.2 % p.a.
Revenue per share +5.9 %

of which total revenue +5.1 % · buybacks/dilution +0.8 %

EBIT margin −6.1 %
Tax rate +0.6 %
Residual (interest, one-offs) +2.1 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Vardhman Textiles Limited Fair Value". https://www.fairvalue-calculator.com/stock/VTL

Peer Group

Textile Manufacturing · 332 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 51 · Above median
Fair Value upside +32% · Top 25%
Return on equity (TTM) 7% · Above median
Return on assets 4% · Above median
Net margin (TTM) 8% · Top 25%
Operating margin (TTM) 7% · Above median
Revenue growth 0% · Below median
Dividend yield (TTM) 0.8% · Below median
Debt / equity 0.12× · Higher than median

Valuation Multiples vs Textile Manufacturing median · lower = cheaper

P/E (TTM) 22.9× · Pricier than median
P/B 1.81× · Pricier than median
P/S (TTM) 1.93× · Pricier than 75% of peers
EV/EBITDA 16.3× · Pricier than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE76 · sector 4
FUTURE0 · sector 0
PAST29 · sector 15
HEALTH94 · sector 95
DIVIDEND17 · sector 33

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Textile Manufacturing stocks, each showing price versus our Fair Value estimate (as of Aug 30, 2026).

Stock Price Fair Value vs Fair Value
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Tongkun Group 601233 ¥22.67 ¥14.53 −36%
Inner Mongolia ERDOS Resources Co 600295 ¥12.95 ¥14.35 +11%
K.P.R. Mill Limited KPRMILL ₹1,124 ₹467.49 −58%
HMT (Xiamen) New Technical Materials Co 603306 ¥71.55 ¥11.85 −83%
Zhejiang Orient Holdings 600120 ¥4.89 ¥2.21 −55%
Albany International Corp AIN $59.92 $18.40 −69%
Isiklar Enerji ve Yapi Holding IEYHO 174.20 TRY 324.31 TRY +86%
Welspun Living Limited WELSPUNLIV ₹190.40 ₹47.44 −75%
Bros Eastern.,Ltd 601339 ¥7.88 ¥7.87 +0%

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Frequently asked questions

Is Vardhman Textiles Limited (VTL) overvalued or undervalued?
As of Aug 30, 2026, our model estimates a fair value of ₹787.55 versus a price of ₹598.20, about +32% upside (undervalued).
What is the fair value of VTL?
Our model-based fair value for Vardhman Textiles Limited is ₹787.55 (as of Aug 30, 2026), built from audited fundamentals. The current price: ₹598.20.
What is the quality score of VTL?
Vardhman Textiles Limited has a Quality Score of 51/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Vardhman Textiles Limited (VTL)?
Vardhman Textiles Limited reported trailing-twelve-month revenue of about ₹98.7B (latest available figure, as of Aug 30, 2026).
What is the net profit margin of VTL?
The net profit margin of Vardhman Textiles Limited is about 7.6%, meaning it keeps roughly 7.6% of revenue as net income. Based on the latest reported figures.
Does Vardhman Textiles Limited pay a dividend?
Vardhman Textiles Limited currently shows a dividend yield of about 0.84% relative to its recent price (as of Aug 30, 2026).
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