The shares of the textile company, specializing in manufacturing grey weaving materials and greige & processed fabrics for both export and domestic markets, hit a 2 percent upper circuit following the Board’s approval of a bonus issue in the ratio of 3:2.
Price action
With a market capitalization of Rs. 833.31 Crores on Thursday, the shares of VTM Limited hit a 2 percent upper circuit, making a high of Rs. 207.15 compared to its previous closing price of Rs. 203.10.
What Happened
VTM Limited, engaged in manufacturing grey weaving materials and greige & processed fabrics for both export and domestic markets, announced on April 16, 2025, that its Board of Directors has approved a bonus issue of equity shares in the ratio of 1.5:1 (or 3:2). This means shareholders will receive 1.5 bonus shares for every 1 share held, with a face value of Rs. 1.
The bonus shares will be issued from the company’s free reserves, based on the audited balance sheet as of March 31, 2024. Post-issue, the share capital will increase from Rs. 14.02 crore to Rs. 100.57 crore, and the bonus shares are expected to be credited within two months of the board’s approval.
About the Company
VTM Limited, established in 1946 and headquartered in Virudhunagar, Tamil Nadu, is a prominent textile manufacturer in India. As a part of the Thiagarajar Group, the company specializes in producing grey woven fabrics, including drills, twills, sateens, piques, jacquards, and dobbies, catering to both export and domestic markets.
Key Insights
The company’s PEG ratio of 0.20 suggests it might be undervalued, and they have a low debt-to-equity ratio of 0.07, which shows strong financial stability. Additionally, the promoters hold over 65 percent of the shares, indicating strong confidence and control within the company.
Financials
The company’s revenue rose by 98.1 percent from Rs. 52.51 crore to Rs. 104.03 crore in Q3FY24-25. Meanwhile, Net profit rose from Rs. 4.61 crores to Rs. 18.2 crores during the same period.
Written by Sridhar J
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
