We’ve recently updated our valuation analysis.

Vardhman Textiles Valuation

Is VTL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for VTL?

Other financial metrics that can be useful for relative valuation.

VTL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1x
Enterprise Value/EBITDA4.6x
PEG Ratio18.5x

Price to Earnings Ratio vs Peers

How does VTL's PE Ratio compare to its peers?

VTL PE Ratio vs Peers
The above table shows the PE ratio for VTL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average31.5x
514162 Welspun India
18x48.2%₹71.9b
509557 Garware Technical Fibres
43.1x18.9%₹69.1b
521064 Trident
24.2x24.9%₹183.2b
531543 Jindal Worldwide
40.9xn/a₹53.6b
VTL Vardhman Textiles
6x0.3%₹93.8b

Price-To-Earnings vs Peers: VTL is good value based on its Price-To-Earnings Ratio (6x) compared to the peer average (31.5x).


Price to Earnings Ratio vs Industry

How does VTL's PE Ratio compare vs other companies in the IN Luxury Industry?

Price-To-Earnings vs Industry: VTL is good value based on its Price-To-Earnings Ratio (6x) compared to the Indian Luxury industry average (13.9x)


Price to Earnings Ratio vs Fair Ratio

What is VTL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

VTL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6x
Fair PE Ratio20.3x

Price-To-Earnings vs Fair Ratio: VTL is good value based on its Price-To-Earnings Ratio (6x) compared to the estimated Fair Price-To-Earnings Ratio (20.3x).


Share Price vs Fair Value

What is the Fair Price of VTL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: VTL (₹342.4) is trading below our estimate of fair value (₹508.15)

Significantly Below Fair Value: VTL is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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