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Check Before You Invest : VTM Ltd

BSE: 532893 NSE: VTMLTD ISIN: INE222F01029
  |   Sector:  Textiles & Apparels   |   Industry:  Textile - Weaving

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 quality company, based on a 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 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.3 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.4 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 Historic Median
Gross Profit Margin 20.3 14.1
Operating Profit Margin 19.42 11.95
Net Profit Margin 13.17 7.68
Q.5 Return on Asset of VTM Ltd?
VTM Ltd Return on Asset is 13.33(x), which is above its 5 year historical median of 5.8(x), indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of VTM Ltd?
VTM Ltd Return on equity is 15.94% for FY-2025 , which is above its historical median of 6.57%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of VTM Ltd?
VTM Ltd Return on capital employed is 20.3% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of VTM Ltd?
VTM Ltd Cash conversion cycle is 116 , above its historical median of 92 , indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.01 0.75
ROE 15.94 6.57
ROCE 20.3 8.14
Cash Conversion Cycle 116 92
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, indicating the business is not able to service its debt comfortably.

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 0.00% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 344.5 208
Gross Profit 70 0.7
Operating Profit 67 1.4
Net Profit 45 0.3
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.01 1.3
ROE 15.94 0.02
ROCE 20.3 7.09
Cash Conversion Cycle 115.89 92

Valuation & price assessment

Q.1 Stock return of VTM Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 21.8% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 21.8% 53.4% 58.7% 0.2%
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 measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 37.06 8.99 14.14
Price to Book 2.67 0.43 1.38
Price to Sales 2.25 0.65 0.53
EV to EBITDA 20.19 4.37 9.60

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