buy_98315393
ICICI Direct's research report on Vardhman Textiles
Vardhman Textiles (VTL) (earlier known as Mahavir Spinning) is part of the Vardhman Group, a large textile conglomerate with a presence across the textile value chain. Vardhman is among few textile companies that have been able to maintain a debt equity ratio below one despite continuous capacity addition Healthy cash flows have enabled VTL to reduce debt by ~Rs 152 crore in FY21 (D/E: 0.3x in FY21). We expect a further debt reduction of ~Rs 450 crore over the next two years to result in a D/E of ~0.2x in FY23E
Outlook
We continue to remain structurally positive and maintain BUY rating We value VTL at Rs 2240 i.e. 10x FY23E earnings
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