VTM LIMITED (532893) - STOCK OF THE WEEK

Dear Investor friends, Today I am expressing my opinion on one Textile stock.

VTM LIMITED (532893)

Virudhunagar Textile Mills (VTML) is an India-based fabrics manufacturing company was incorporated in 1946. The company's plant is located in Virudhunagar. The Company has approximately 270 looms in its manufacturing unit. It also has over 130 Sulzer machines, approximately 140 Air jets and approximately three Jacquard machines to work in tandem to produce approximately one million meters of fabric every month.

The Company's product types include Square Inch Drills, Twills, Sateens, Piques, Yarn Dyed, Jacquards and a range of Complex Dobbies. The Company's woven fabrics include Cambric, Voile, Feather Proof, Poplin, Pinpoint Oxford, Satin, Stripe Sateen, Satin, Check Sateen, Weft Str.Satin, Plain+Satin Stripe, H.B.Twill, Pique, 2/2 Twill, Percale (1/1), Percale (1/1) Pima, Grey Sheeting, Swiss Dot, Birds Eye and Yarn Dyed, among others. The Company is involved in the manufacture of grey weaving requirements for both the export and domestic markets.

In 2000-01 28 Shuttle Looms have been replaced looms at a cost of Rs.855 crores and this was financed through internal accruals. To make it more competitive in both International and Domestic markets,the Company has proposed to modernise its plant & machinery under TUFS at an estimated cost of Rs.10 crores. The modernisation scheme if implemented will yield a high value in its product mixture.

Some of the varieties produced by VTML are cambric, voile, poplin, pin point oxford, satin, chambray, drill, oxford weave, grey sheeting, etc. The mill is equipped with state of the art machineries like 60 air-jet weaving machines, besides 174 Lakshmi Ruti C looms of various widths.

PRODUCT TYPES

Company is having following product Types:

·        Sq.Inch Drills

·        Twills

·        Sateens

·        Piques

·        Jacquards

·        Complex Dobbies

Company website: Click here

FINANCIALS AND OUTLOOK

Company shares are trading in BSE.

Promoter holding: 75 % as on dec qtr.

Company posted 42.06 Cr top line in Dec Qtr.

Net profit is 2.17 Cr bottom-line in Dec Qtr.

Regular dividend paying company.

Virtually debt free company.

Debt to equity ratio : 0.08

Stock is trading at Rs 32

Company is mainly engaged in the business of Textile segment mainly in the day to day segment product categories. This segment is a consumption theme and have a good growth going forward.

By considering above, and performance of the company over QOQ investors will get handsome returns in a days to come.

PLEASE NOTE : THIS IS NOT A REASERCH REPORT AND NOT ANY RECOMMENDATION REPORT.

NOTE : THE ABOVE IS NOT A RESEARCH REPORT NOR A RECOMMENDATION  BUT INFORMATION AS AVAILABLE ON PUBLIC DOMAIN. 

Registration status with SEBI: I am not registered with SEBI under the (Research Analyst) regulations 2014 and as per clarifications provided by SEBI: “Any person who makes recommendation or offers an opinion concerning securities or public offers only through public media is not required to obtain registration as research analyst under RA Regulations”