Buy Vardhman Textiles, target price Rs 455 : Emkay Global Financial Services

Emkay Global Financial Services has buy call on Vardhman Textiles with a target price of Rs 455. The current market price of Vardhman Textiles is Rs 308.7.

Vardhman Textiles, incorporated in the year 1973, is a Mid Cap company (having a market cap of Rs 8903.80 Crore) operating in Textiles sector.

Vardhman Textiles key Products/Revenue Segments include Yarn, Fabric, Export Incentives, Garments, Others, Service Income for the year ending 31-Mar-2022.

Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 2499.98 Crore, down -11.72 % from last quarter Total Income of Rs 2831.79 Crore and up 1.93 % from last year same quarter Total Income of Rs 2452.54 Crore. Company has reported net profit after tax of Rs 196.59 Crore in latest quarter.

The company’s top management includes Mr.Shri Paul Oswal, Ms.Sagrika Jain, Mr.Prafull Anubhai, Dr.Parampal Singh, Dr.Subash Khanchand Bijlani, Mr.Ashok Kumar Kundra, Mr.Sachit Jain, Mrs.Harpreet Kaur Kang, Mr.Neeraj Jain, Mrs.Suchita Jain, Mr.Udeypaul Singh Gill. Company has Deloitte Haskins & Sells LLP as its auditors. As on 30-06-2022, the company has a total of 29 Crore shares outstanding.

Investment Rationale
Vardhman is on track to boost its capacity by ~10% in FY23, it plans adding another ~15% in the medium term, subject to demand revival.

Promoter/FII Holdings
Promoters held 62.91% as of June 2022 quarter, while FIIs owned 7.51 per cent and DIIs 16.5 per cent.