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Sunday, October 25, 2015
VTM LTD (532893 ) :- QUALITY IS FIRST NAME
Today we are looking in to textile sector stock for long term investment.
VTM bring six decades of expertise to the fabric manufacturing business. VTM manufacturing unit is located at Virudhunagar, South India, a well- connected destination through rail and road. Virudhunagar is also centrally located to the cream of yarn manufacturers and thus gives the benefit of a relentless supply of raw material for process.
Promoter holding 75% stake in company, VTM posted stellar latest quarter results, company posted 37cr top line and 3.6cr bottom line ( last full year bottom line 7.4 cr ) in just 6 month company crossed 7.5cr net profit, estimated profit for the full year 2015-16 around 15cr expected EPS around 4.
VTM have a book value 29.50 and 150cr top line with just 85 cr market cap and stock trading just 7 PE ( forward earning) industry PE around 20 so company stock is trading under value to pear group. VTM is a regular dividend paying company (63% DIVIDEND 1RE face value stock ).
Stock trading only in BSE @ 22 level, investor can buy this stock @ current price and buy further in correction (if any ).This is a very low risk and high return stock.