₹1.58
-4.82% today
· 30d +23.44%
as of 2026-09-04
Price · Daily Candles
“VCL's quarterly profit soars 300% amid FII buying, defying long-term revenue contraction.”
VCL, a textile manufacturer with a ₹26.0 Cr market cap, saw its Q4 net profit jump 300% to ₹4.0 Cr, despite a 69.21% annual revenue decline in fiscal 2025. This quarterly outperformance, coupled with a 2.14% increase in FII stake, contrasts with its significant current valuation, trading at ₹1.44 against an intrinsic value of ₹0.25, indicating it is overvalued by 82.4%.
BULL CASE
+Q4 net profit reached ₹4.0 Cr, a 300% increase from the previous quarter's corresponding period.
+FIIs increased their stake by 2.14% in Q4 2026, holding 11.19% of the company.
+Quarterly operating profit margin (OPM) stands at 37.1%, showcasing operational efficiency in the last reported quarter.
+The stock delivered a 1-year return of 87.01%, significantly outperforming the broader market.
+Valuation metrics show a TTM PE of 4.33 and a PB of 1.53, both competitive within its sector peers.
BEAR CASE
−Annual revenue for fiscal 2025 declined by 69.21% YoY, indicating significant operational headwinds.
−Promoter shareholding decreased by 0.34% QoQ to 0.5% in Q4 2026.
−The company is currently trading at ₹1.44, significantly above its intrinsic value of ₹0.25, indicating it's 82.4% overvalued.
−Five-year revenue CAGR is a negative 28.33%, demonstrating persistent top-line erosion.
−The stock is 45.86% off its 52-week high of ₹2.66, suggesting a recent price correction.
⟳ What Changed
₹ Latest Earnings · Q ending 2025-12-31
REVENUE
₹9 Cr
NET PROFIT
₹4 Cr
OPM
37.1%
+3228.25pp YoY
EPS
₹0.22
PE 4.33
Intrinsic value · DCF ₹0.83 · Margin of safety -47.5% (overvalued) · FCF yield 4.24%
◇ Sector Position
VCL's TTM PE of 4.33 puts it significantly below peers like WELSPUNLIV (PE 64.9) and ARVIND (PE 36.47), but its ROCE of 2.25% is an outlier compared to Trident's 16.43% and GARFIBRES' 27.34%.
PEERPEROCE %
VCL4.33—
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ML Forward Growth Predictions 🔒
69
SCORE / 100
Overall
6-axis composite of the sections below.
Performance
STRONG
100
Valuation
CHEAP
90
Growth
DECLINING
22
Profitability
HIGH
90
Technicals
NEUTRAL
62
Risk
MODERATE
50
Key Stats
TTM PE
4.33
P/B
1.53
52W HIGH
₹2.66
OFF HIGH
-40.6%
MKT CAP
₹29 Cr
◉ Active Signals
MACDNeutral-0.0709
RSI(14)Neutral43.31
⧉ Strategy Fit 🔒