Vishal Fabrics Experiences Quality Grade Change Amidst Competitive Market Landscape

Vishal Fabrics, a microcap player in the Garments & Apparels industry, has recently undergone an evaluation revision, reflecting its current operational performance and market standing. The company has demonstrated a sales growth rate of 3.22% over the past five years, alongside an EBIT growth of 2.57%. Financial metrics indicate a stable EBIT to interest ratio of 2.36 and a debt to EBITDA ratio of 2.52, suggesting a manageable debt load relative to earnings.
The net debt to equity ratio stands at 0.97, indicating a balanced approach to leveraging. Additionally, the sales to capital employed ratio is recorded at 1.98, which reflects efficient use of capital. The tax ratio is noted at 46.92%, while the company maintains a dividend payout ratio of 19.13% and an institutional holding of 5.60%. Return on capital employed (ROCE) and return on equity (ROE) average at 10.99% and 10.68%, respectively.

In comparison to its peers, Vishal Fabrics aligns closely with several companies in the sector, with most competitors also rated at an average level. However, Ambika Cotton stands out with a higher quality assessment, while Rajapalayam Mill and RSWM Ltd are noted for lower evaluations. This context highlights the competitive landscape within the garments and apparel market.