After rebound post-Covid pandemic, a good number of stocks have given multibagger return. Vardhman Textiles shares are one of those multibagger stocks. It has delivered near 130 per cent return to its shareholders in last one year. Vardhman Textiles share price today opened with an upside gap of near Rs40 per share and went on to ascend to its intraday high of Rs2,589.50 per share levels on NSE, logging near 5 per cent rise from its yesterday's close price of rs24.68.55 apiece levels.

However, if we go by secondary market experts, they are still bullish on the multibagger textile counter and they see around 18 per cent further upside in this stock in next six months. Market experts went on to add that Vardhman Textiles share price is expected to surge up to Rs3030 apiece levels from current Rs2580 per share levels.

Highlighting current valuations of the multibagger stock, HDFC Securities research report says, "We are positive on the future earnings growth trajectory of VTL. We expect Revenue/EBITDA/PAT growth of 20/40/53% over FY21-FY24 driven by strong demand and increased capacities gradually coming on stream. EBITDA margins are likely to compress from the current unsustainable levels but would remain at the upper end of the 18-22% guidance given by the management."

Sharing key features of its strong Q3 numbers; the brokerage says, "EBITDA more than doubled YoY to Rs619cr and EBITDA margin expanded 898bps to 23.8% due to operating leverage. PAT increased 151% YoY to Rs429cr driven by higher EBITDA, other income and lower interest cost. The management expects EBITDA to remain at the upper end of 18-22% range. PAT increased by 153% to Rs431cr driven by higher other income and lower interest cost."

Brokerage went on to add that company’s board of directors has approved 1:5 stock split from face value of Rs10 per share to Rs2 per share, subject to the approval of the shareholders.

Pointing at key features in chart pattern; Anuj Gupta, Vice President at IIFL Securities said, “This multibagger stock is looking highly positive on the chart pattern. Bullish candle-stick pattern with substantial volume is visible on the chart that signals sharp upside in the counter. Short term positional investors can buy this textile stock at current levels for rs2800 target. However, one must maintain stop loss at Rs2320 apiece levels."

On its suggestion to positional investors in regard to this multibagger stock; HDFC Securities said, "We believe investors could buy the stock in Rs2580 to Rs2620 band and add on dips to Rs2230 to rs2270 band for base case fair value of Rs2770 and bull case fair value of Rs3030 over the next 2 quarters."