Textile stock hits 5% upper circuit after receiving board approval to list equity shares on NSE

Synopsis: A microcap textile stock was in the focus as the company’s board gave approval for listing its 10 crore+ equity shares on the National Stock Exchange leading to enhanced visibility among public.

A microcap stock in the business of weaving and catering to special fabric manufacturing saw its stock hit the upper circuit soon after the company board decided to list its equity shares on the National Stock Exchange as well, apart from already being listed on the Bombay Stock Exchange.

With a market cap of Rs 573 Cr, VTM Ltd saw its stock hit the upper circuit with an intraday high of Rs 59 which is 5 percent higher than the previous close of Rs 56. This stock has given a compounded return of 42 percent in the past 3 years.

News

The company’s board has approved the listing of its equity shares on the National Stock Exchange (NSE) in addition to the existing BSE listing, this has marked a key corporate development for the company. The proposal involves listing 10,05,69,000 equity shares of face value Rs 1 each on NSE, this could enhance market visibility, trading liquidity, and investor participation for the stock. 

Additionally, the dual listing still remains subject to approvals from NSE, SEBI, BSE, the Registrar of Companies (ROC), and other statutory authorities. As of now, the board has authorized the management to file necessary applications, execute listing agreements, coordinate with regulators, and appoint advisors in order to successfully complete the NSE listing process.

Business & Financial Overview

Incorporated in 1946, VTM Ltd headquartered in Tamil Nadu operates in the weaving segment and specializes in manufacturing high-quality fabrics with fine counts and complex specifications. The company specialises in manufacturing grey weaving requirements and Greige & Processed Fabrics for export and domestic markets. The company offers specialty fabrics like Structured, Dobby, Plain, Twill, Satin, Jacquard designs and more

In the latest quarter VTM Ltd saw a YoY revenue growth of 23 percent, going from Rs 73 Cr in Q2FY25 to Rs 90 Cr in Q2FY26, while the QoQ went up by 25 percent from Rs 72 Cr in Q1FY26. The YoY Net Profits fell by 76 percent, going from Rs 9.7 Cr in Q2FY25 to Rs 2.3 Cr in Q2FY26, while the QoQ fell by 50 percent from Rs 4.6 Cr in Q1FY26.

The company has a 3 year profit CAGR of 54 percent, while the Sales CAGR for the same period of time is at 21 percent. VTM limited is currently trading at a PE of 15 which is lesser than the industry PE of 19.

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