BSE:532893

Stock Analysis Report

Executive Summary

VTM Limited manufactures and sells textile products in India.

Snowflake

Fundamentals

Solid track record with adequate balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has VTM's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 532893 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.9%

532893

-1.4%

IN Luxury

0.5%

IN Market


1 Year Return

-11.6%

532893

3.2%

IN Luxury

5.6%

IN Market

Return vs Industry: 532893 underperformed the Indian Luxury industry which returned 3.2% over the past year.

Return vs Market: 532893 underperformed the Indian Market which returned 5.6% over the past year.


Shareholder returns

532893IndustryMarket
7 Day-1.9%-1.4%0.5%
30 Day-1.2%-5.2%2.1%
90 Day6.0%9.0%10.4%
1 Year-8.7%-11.6%4.0%3.2%7.6%5.6%
3 Year-15.1%-19.8%65.9%63.7%37.0%29.9%
5 Year14.1%1.6%101.7%97.9%39.6%27.0%

Price Volatility Vs. Market

How volatile is VTM's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is VTM undervalued compared to its fair value and its price relative to the market?

9.39x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 532893 (₹25.45) is trading above our estimate of fair value (₹7.13)

Significantly Below Fair Value: 532893 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 532893 is good value based on its PE Ratio (9.4x) compared to the Luxury industry average (10.8x).

PE vs Market: 532893 is good value based on its PE Ratio (9.4x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 532893's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 532893 is good value based on its PB Ratio (0.5x) compared to the IN Luxury industry average (0.6x).


Next Steps

Future Growth

How is VTM forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

20.6%

Forecasted Consumer Durables industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as VTM has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has VTM performed over the past 5 years?

2.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 532893 has high quality earnings.

Growing Profit Margin: 532893's current net profit margins (6.5%) are higher than last year (6.1%).


Past Earnings Growth Analysis

Earnings Trend: 532893's earnings have grown by 2.9% per year over the past 5 years.

Accelerating Growth: 532893's earnings growth over the past year (8.9%) exceeds its 5-year average (2.9% per year).

Earnings vs Industry: 532893 earnings growth over the past year (8.9%) exceeded the Luxury industry 1%.


Return on Equity

High ROE: 532893's Return on Equity (5.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is VTM's financial position?


Financial Position Analysis

Short Term Liabilities: 532893's short term assets (₹1.2B) exceeds its short term liabilities (₹138.8M)

Long Term Liabilities: 532893's short term assets (₹1.2B) exceeds its long term liabilities (172.9M)


Debt to Equity History and Analysis

Debt Level: 532893's debt to equity ratio (3.9%) is considered satisfactory.

Reducing Debt: 532893's debt to equity ratio has increased from 1.4% to 3.9% over the past 5 years.

Debt Coverage: Insufficient data to determine if 532893's debt is well covered by operating cash flow.

Interest Coverage: 532893's interest payments on its debt are well covered by EBIT (8.6x coverage).


Balance Sheet

Inventory Level: 532893 has a high level of physical assets or inventory.

Debt Coverage by Assets: 532893's debt is covered by short term assets (assets are 14.7x debt).


Next Steps

Dividend

What is VTM's current dividend yield, its reliability and sustainability?

3.54%

Current Dividend Yield


Dividend Yield vs Market

company3.5%marketbottom25%0.6%markettop25%2.5%industryaverage0.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 532893's dividend (3.54%) is higher than the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: 532893's dividend (3.54%) is in the top 25% of dividend payers in the Indian market (2.46%)


Stability and Growth of Payments

Stable Dividend: 532893's dividend payments have been volatile in the past 10 years.

Growing Dividend: 532893's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33.2%), 532893's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of VTM's salary, the management and board of directors tenure and is there insider trading?

4.6yrs

Average board tenure


CEO

T. Kannan (65yo)

4.5yrs

Tenure

₹5,600,000

Compensation

Mr. T. Kannan serves as the Chairman and Managing Director of Virudhunagar Textile Mills Ltd. since May 7, 2015. He is a co-owner of Avittam Investments. 


Board Age and Tenure

4.6yrs

Average Tenure

65yo

Average Age

Experienced Board: 532893's board of directors are considered experienced (4.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • S. Paramasivam

    Compliance Officer & Company Secretary

    • Tenure: 0yrs
  • T. Kannan (65yo)

    Chairman & MD

    • Tenure: 4.5yrs
    • Compensation: ₹5.60m
  • M. Ramanathan

    Chief Financial Officer

    • Tenure: 0.8yrs
    • Compensation: ₹793.28k

Board Members

  • K. Thiagarajan

    Non Executive Director

    • Tenure: 6.3yrs
    • Compensation: ₹24.00k
  • A. Mariappan

    Independent Director

    • Tenure: 0yrs
    • Compensation: ₹33.00k
  • R. Somasundaram (67yo)

    Independent Director

    • Tenure: 0yrs
    • Compensation: ₹39.00k
  • T. Kannan (65yo)

    Chairman & MD

    • Tenure: 4.5yrs
    • Compensation: ₹5.60m
  • M. Murugesan

    Independent Director

    • Tenure: 6.1yrs
    • Compensation: ₹12.00k
  • Uma Kannan

    Woman Director

    • Tenure: 4.7yrs
    • Compensation: ₹12.00k
  • K. Vethachalam

    Non Executive Director

    • Tenure: 4.1yrs
    • Compensation: ₹6.00k
  • T. Ramanathan (65yo)

    Independent Director

    • Tenure: 0.6yrs

Company Information

VTM Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: VTM Limited
  • Ticker: 532893
  • Exchange: BSE
  • Founded: 1946
  • Industry: Textiles
  • Sector: Consumer Durables
  • Market Cap: ₹1.032b
  • Shares outstanding: 40.23m
  • Website: https://www.vtmill.com

Number of Employees


Location

  • VTM Limited
  • Sulakarai
  • Virudhunagar
  • Tamil Nadu
  • 626003
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
532893BSE (Mumbai Stock Exchange)YesEquity SharesININRSep 2007

Biography

VTM Limited manufactures and sells textile products in India. The company offers drills, twills, sateen’s, piques, jacquards, and dobbies, as well as woven fabrics. It also exports its products. VTM Limite ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/22 12:47
End of Day Share Price2019/11/22 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.