Vardhman Textiles Limited (VTL.NS) Stock Analysis & Winston Score

Vardhman Textiles Limited is one of India's largest textile manufacturers. The company makes yarn, fabric, and finished garments, selling to clothing brands, retailers, and other textile businesses across India and internationally. It operates across the full textile supply chain — from raw cotton processing all the way to finished fabric — which is relatively rare among Indian textile companies.

Vardhman earns revenue by selling its products directly to business customers, not to everyday shoppers. It is headquartered in Ludhiana, Punjab, and runs multiple large manufacturing facilities across India. Its scale and vertical integration — controlling most steps of production in-house — help keep costs lower than smaller competitors. The main growth driver is rising global demand for "China-plus-one" sourcing, where international brands look to India as an alternative supplier, but the company also faces risks from cotton price swings and currency fluctuations that can squeeze profit margins unpredictably.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-0.4% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-22.3% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

↓ Declining (-100% vs prior year)

0.0% of revenue

Below sector average (4%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

66.0%ownership

Insiders own a meaningful stake in the company

Cash Runway

~2 years

$19.7B cash & investments

$19.7B cash & investments at current burn rate

Revenue declining

Vardhman Textiles Limited's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Share count broadly stable

+0.2% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 284.2M (2022) → 284.7M (2026)

Score breakdown

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Quality

Gross Margin

46.0%

Healthy — 46.0% gross margin

Operating Margin

6.9%

Modest — 6.9% operating margin

ROCE

1.4%

Weak — 1.4% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY

+1.8%

Nearly flat sales (1.8% YoY)

EPS YoY

-4.9%

Earnings shrinking (-4.9% YoY)

Slight earnings drop. Typical near a cyclical low.

EPS Consistency

2/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

92%

Modest — 92% of profit becomes cash

FCF Margin

-2.1%

Burning cash (-2.1%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity

0.18

Conservative — low debt load (0.18)

Interest Cover

11.79x

Comfortably covers interest (11.8x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)

23.4x

Growth-priced — P/E 23.4

P/E above the market average. People are paying up for expected growth.

P/E vs Forward

+9.5

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (23.4 → 13.9)

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Dividends

Dividend Yield

0.77%

Small dividend — 0.77% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth

-28.5%

Dividend cut (-28.5% YoY) — warning sign

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