Check Before You Invest : VTM Ltd

Snapshot

Q.1 Which industry/sub-sector does VTM Ltd belong to?

VTM Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile - Weaving segment.

Q.2 Is VTM Ltd a good quality company?

VTM Ltd is a weak quality company, based on a inconsistent 10-year financial track record.

Q.3 Is VTM Ltd undervalued or overvalued?

VTM Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is VTM Ltd a good buy now?

VTM Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of VTM Ltd?

VTM Ltd revenue growth is 65.7% for FY-2025, which is above its 5-year CAGR of 16.5%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of VTM Ltd?

VTM Ltd Return on capital employed is 20.3% for FY-2025, which is above its 5-year historical median of 8.14%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of VTM Ltd?

VTM Ltd Return on Asset is 13.33%, which is above its 5-year historical median of 5.8%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of VTM Ltd?

VTM Ltd Return on equity is 15.94% for FY-2025, which is above its 5-year historical median of 6.57%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of VTM Ltd?

VTM Ltd Cash conversion cycle is 116 days, above its 5-year historical median of 92 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.01	0.75
ROE	15.94	6.57
ROCE	20.3	8.14
Cash Conversion Cycle	116 days	92 days

Q.6 Gross Profit margin of VTM Ltd?

VTM Ltd Gross profit margin which is the profit after deduction of direct costs, is 20.3% for FY-2025, which is above its 5-year median of 14.1%, indicating increasing margins.

Q.7 Operating Profit Margin of VTM Ltd?

VTM Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 19.42% for FY-2025, which is above its 5-year median of 11.95% indicating increasing margins.

Q.8 Net Profit Margin of VTM Ltd?

VTM Ltd Net Profit Margin is 13.17% for FY-2025, is above with its 5-year median of 7.68%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	20.3	14.1
Operating Profit Margin	19.42	11.95
Net Profit Margin	13.17	7.68

Q.9 Debt to Equity ratio of VTM Ltd?

VTM Ltd Debt-to-Equity ratio is 0.13, which is lower with the industry average of 0.82, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of VTM Ltd?

VTM Ltd Debt to cash flow from operations is -1.09, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of VTM Ltd?

Promoters hold 75.00% of the VTM Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of VTM Ltd vs industry peers?

VTM Ltd revenue CAGR is 16.50%, compared to the industry median CAGR of -0.62%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	65.7	-0.6
Gross Profit Growth	118.8	7.6
Operating Profit Growth	157.7	7
Net Profit Growth	150	22.1

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.01	1.35
ROE	15.94	1.14
ROCE	20.3	7.09
Cash Conversion Cycle (days)	115.89	93

Valuation & price assessment

Q.1 Stock return of VTM Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 18.6% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	18.6%	50.1%	52.4%	-13.5%

Q.3 Valuation ratios of VTM Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	33.17	16.11	16.09
Price to Book	2.39	0.97	1.38
Price to Sales	2.01	1.23	0.53
EV to EBITDA	18.16	8.60	9.19

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