Vardhman Textiles Share Price Target 2026 to 2030

Vardhman Textiles Ltd Share Price Target 2026–2030

Vardhman Textiles Ltd (VTL) is one of India’s largest integrated textile manufacturers, with operations spanning yarn, fabric, acrylic fiber, and garments. Headquartered in Ludhiana, Punjab, the company exports to over 75 countries and holds a leadership position in India’s woven fabric segment. With a strong balance sheet, consistent dividend history, and strategic focus on value-added products, VTL has emerged as a resilient player in the cyclical textile sector. This article provides a data-backed outlook on the Vardhman Textiles share price target 2026–2030.

WhatsApp Group Join Now
WhatsApp Channel Join Now

Vardhman Textiles Ltd: Company Overview

  • Founded: 1962
  • Headquarters: Ludhiana, Punjab
  • Key Segments: Yarn (45%), Fabric (30%), Acrylic Fiber (15%), Garments (10%)
  • Global Reach: Exports to 75+ countries; among top 3 woven fabric makers in India
  • Ownership: Promoter-held (64.44%); part of the Vardhman Group

VTL benefits from backward integration, cost leadership, and a diversified product mix—making it less vulnerable to raw material volatility than peers.

Vardhman Textiles Ltd: Key Financial Snapshot

MetricValue
Current Share Price₹431.00
Market Capitalization₹12,437.20 Cr
No. of Shares Outstanding28.92 Cr
52-Week High / Low₹564 / ₹361
P/E Ratio (TTM)15.74
P/B Ratio1.24
EPS (TTM)₹27.31
Book Value (TTM)₹345.79
ROE9.57%
ROCE11.46%
Dividend Yield1.16%
Face Value₹2
Cash₹84.74 Cr
Total Debt₹1,237.90 Cr
Debt-to-Equity0.12
Sales Growth (YoY)3.10%
Profit Growth (YoY)44.67%
Promoter Holding64.44%

Vardhman Textiles Ltd Share Price Target Forecast (2026–2030)

YearTarget Price Range (₹)
2026₹460 – ₹510
2027₹490 – ₹560
2028₹520 – ₹620
2029₹550 – ₹680
2030₹580 – ₹740

Vardhman Textiles Ltd Share Price Target 2026

YearShare Price Target 1Share Price Target 2
2026₹460₹510

VTL reported 44.67% YoY profit growth in FY25 despite modest sales growth (3.1%), driven by operational efficiency and product mix optimization. Trading at a P/E of 15.7x and P/B of 1.24x—below its 5-year average—the stock appears undervalued relative to its asset base and cash flow. A 2026 target of ₹460–₹510 assumes stable cotton prices and steady export demand.

Vardhman Textiles Ltd Share Price Target 2027

YearShare Price Target 1Share Price Target 2
2027₹490₹560

The company’s focus on high-margin specialty yarns and technical textiles offers margin resilience. If sales grow at 6–8% CAGR and EBITDA margins hold near 13%, EPS could reach ₹30–₹33 by FY27. At a P/E of 16–17x, the 2027 range of ₹490–₹560 is justified.

Vardhman Textiles Ltd Share Price Target 2028

YearShare Price Target 1Share Price Target 2
2028₹520₹620

By 2028, benefits from capacity expansion and automation should reflect in earnings stability. The company’s net worth stood at ₹9,985 Cr as of FY25—up 10% YoY—indicating internal capital generation. A P/E of 16.5–18x on projected EPS (~₹31–₹34) supports the ₹520–₹620 band.

Vardhman Textiles Ltd Share Price Target 2029

YearShare Price Target 1Share Price Target 2
2029₹550₹680

Long-term tailwinds include India’s PLI scheme for textiles, rising global demand for sustainable fabrics, and rupee depreciation aiding exports. Risks include cotton price volatility and global recession fears. Using a P/E of 17–19x on FY29 EPS (~₹32–₹36), the 2029 target is ₹550–₹680.

Vardhman Textiles Ltd Share Price Target 2030

YearShare Price Target 1Share Price Target 2
2030₹580₹740

Over a five-year horizon, VTL’s value lies in its irreplaceable manufacturing scale and export franchise—not explosive growth. If it sustains 10–12% ROCE and maintains a 20–25% dividend payout, a terminal P/E of 18–20x on FY30 EPS (~₹32–₹37) justifies the ₹580–₹740 range.

Vardhman Textiles Ltd: Shareholding Pattern

CategoryHolding (%)
Promoters64.44%
Domestic Institutional Investors (DII)16.34%
Foreign Institutional Investors (FII)5.72%
Public & Retail13.50%
Others0%

High promoter holding ensures strategic continuity. Rising DII interest reflects confidence in governance.

Vardhman Textiles Ltd: Strengths vs Risks

Strengths:

  • Integrated textile player with cost leadership
  • Strong balance sheet: low debt (D/E: 0.12), high cash conversion
  • Consistent dividend payer (1.16% yield; ~20% payout ratio)
  • Export diversification reduces domestic dependency

Risks:

  • Modest ROE (9.57%) and ROCE (11.46%)—below industrial peers
  • Exposure to cotton price swings and global demand cycles
  • Sales growth remains sluggish (3.1% YoY)
  • P/B of 1.24x leaves a limited margin of safety if execution falters

Investment Suitability

FactorAssessment
Risk ProfileModerate
Ideal Time Horizon3–5+ years
VolatilityMedium (textile sector cyclicality)
Dividend/Income PotentialYes (1.16% yield + consistent payouts)
Best ForConservative investors seeking manufacturing exposure with income
Yes—for long-term portfolios seeking a high-quality, integrated textile player with export strength. Current valuation (P/E: 15.7x, P/B: 1.24x) offers fair entry, not deep value.
Among listed peers:
  • Vardhman Textiles: Best for integrated scale, low debt, and dividends
  • Arvind Ltd: Higher growth but higher leverage
  • KPR Mill: Premium valuation, strong export focus
For the balance of safety and growth, VTL edges ahead.
Key peers include Arvind Ltd, KPR Mill, Welspun India, Trident Ltd, and Siyaram Silk Mills.
Positive. India’s textile exports are expected to grow at an 8–10% CAGR, supported by PLI schemes and global supply chain diversification. VTL’s scale and integration position it well to capture this opportunity.
Yes, especially on dips near ₹400–₹430. Suitable for conservative investors seeking dividend-paying manufacturing exposure with moderate growth.

Final Verdict

Vardhman Textiles Ltd combines operational excellence, financial prudence, and export leadership. While not a high-growth story, its undemanding valuation, consistent dividends, and strategic positioning make it a reliable compounder. Our Vardhman Textiles share price target 2026–2030 (₹460 to ₹740) reflects steady appreciation—if global demand holds and cotton prices stabilize.

Disclaimer: Price targets are estimates based on publicly available data and sector analysis. They are not investment advice. Consult a SEBI-registered advisor before making decisions.

Sources

Scroll to Top