Centrum recommended Accumulate rating on Vardhman Textiles with a target price of Rs 1440 in its research report dated May 18, 2018.
Broker Research
Centrum's research report on Vardhman Textiles
Vardhman Textiles Ltd (VTL), for Q4FY18, on a consolidated basis, reported EBITDA margin expansion of 45bps YoY (up 359bps QoQ) to 17.2%, in-line with our expectation. Margin expansion was aided by lower raw material cost (down 269bps to 51% of sales).
Outlook
With ramp up in utilization, the share of fabric division is likely to increase from the current level of 35% (of sales), thereby aiding operational performance. We maintain our Accumulate rating and value the stock at 11x FY20E EPS giving a target price of Rs1,440.For all recommendations report, click here
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