Welspun Corp Ltd - Stock Valuation and Financial Performance

BSE: 532144 | NSE: WELCORP | Steel & Iron Products | Small Cap

Welspun Corp Share Price

513 -0.20 -0.04%
as on 28-Mar'24 16:01

DeciZen - make an informed investing decision on Welspun Corp

Overall Rating
Bole Toh

1. Quality

2. Valuation

Overvalued

3. Price Trend

Welspun Corp stock performance -

mw4me loader
P/E Ratio (SA):
24.01
Market Cap:
13,500.7 Cr.
52-wk low:
186
52-wk high:
625

Is Welspun Corp Ltd an attractive stock to invest in?

1. Is Welspun Corp Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Welspun Corp Ltd is a average quality company.

2. Is Welspun Corp Ltd undervalued or overvalued?

The key valuation ratios of Welspun Corp Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.

3. Is Welspun Corp Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Welspun Corp Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Welspun Corp:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Welspun Corp Ltd has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good

Value Creation

Value Creation Index Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 6%4%3.3%7.8%8.1%2.5%18.5%35%14.3%12.6%-
Value Creation
Index
-0.6-0.7-0.8-0.5-0.4-0.80.31.50.0-0.1-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 4,8684,9493,7724,3464,0204,1364,2535,2855,2886,9178,271
Sales YoY Gr.-1.7%-23.8%15.2%-7.5%2.9%2.8%24.3%0.1%30.8%-
Adj EPS 7.70.9-0.64.55.6-0.813.835.918.818.521.5
YoY Gr.--87.8%-163.8%NA25.2%-114.4%NA160.8%-47.6%-1.8%-
BVPS (₹) 74.370.961.568.272.261.659.5103.3116.7132.3128.8
Adj Net
Profit
20324.7-16118148-21.3359936491483562
Cash Flow from Ops. 41525633626679225316.2378193-323-
Debt/CF from Ops. 6.48.45.65.60.9348.81.46.8-4.6-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 4%11.5%17.6%30.8%
Adj EPS 10.2%27.1%10.3%-1.8%
BVPS6.6%12.9%30.5%13.4%
Share Price 22.5% 30.5% 56.1% 160.5%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
6.41.3-0.96.97.9-1.222.543.917.114.816.5
Op. Profit
Mgn %
12.57.78.611.99.45.29.811.65.89.98.8
Net Profit
Mgn %
4.20.5-0.42.73.7-0.58.417.79.376.8
Debt to
Equity
1.41.21.20.80.40.50.50.20.40.4-
Working Cap
Days
16918127121525817516116516514678
Cash Conv.
Cycle
11011518916418911511578668319

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 17.59%

Net Profit is growing at healthy rate in last 3 years 10.33%

Sales growth is good in last 4 quarters at 25.20%

Return on Equity has declined versus last 3 years average to 16.50%

Latest Financials - Welspun Corp Ltd.

Standalone Consolidated
TTM EPS (₹) 21.5 41.2
TTM Sales (₹ Cr.) 8,271 16,949
BVPS (₹.) 128.8 202.2
Reserves (₹ Cr.) 3,241 5,159
P/BV 4.00 2.55
PE 24.01 12.53
From the Market
52 Week Low / High (₹) 186.00 / 625.00
All Time Low / High (₹) 1.00 / 625.00
Market Cap (₹ Cr.) 13,501
Equity (₹ Cr.) 130.8
Face Value (₹) 5
Industry PE 25.1

Management X-Ray of Welspun Corp:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

Key Ratios of Welspun Corp

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales4,8684,9493,7724,3464,0204,1364,2535,2855,2886,917
Operating Expenses 4,6204,6663,6103,8443,6734,2053,9684,6814,9946,279
Manufacturing Costs400269322403321407598782539552
Material Costs3,5664,0312,8123,1543,0703,2082,8923,5414,0995,316
Employee Cost 141171193185167190199197209190
Other Costs 513196282102115400279161146220
Operating Profit 247283163502347-68285604294638
Operating Profit Margin (%) 5.1%5.7%4.3%11.6%8.6%-1.7%6.7%11.4%5.6%9.2%
Other Income 175147108213128126402874493327
Interest 2242132012071311181115877149
Depreciation 226243248244116113123110115109
Exceptional Items 0000000000
Profit Before Tax -28-25-179264228-1744521,310595707
Tax -10-10-55897922146285109178
Profit After Tax -18-16-123175148-1963061,025486529
PAT Margin (%) -0.4%-0.3%-3.3%4.0%3.7%-4.7%7.2%19.4%9.2%7.6%
Adjusted EPS (₹)-0.7-0.6-4.66.65.6-7.411.739.318.620.2
Dividend Payout Ratio (%)-75%-84%-11%8%9%-7%89%13%27%25%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 1,9541,8661,6301,8101,9161,6331,5512,6953,0443,459
Share Capital 131132133133133133130130130131
Reserves 1,8221,7341,4971,6771,7831,5001,4212,5652,9143,328
Minority Interest0000000000
Debt2,1862,0661,7781,3866067127615041,275599
Long Term Debt1,9421,8781,5911,173605537511434790239
Short Term Debt244188187214117525070485360
Trade Payables5082,1911,3341,9341,8281,015749486967715
Others Liabilities 1,4181,5641,1761,2071,2461,0411,8761,6341,2642,217
Total Liabilities 6,0667,6875,9186,3375,5964,4014,9385,3206,5516,991

Fixed Assets

Gross Block4,2944,3802,8432,8602,9211,2101,3631,8741,8731,894
Accumulated Depreciation1,3091,572247490724442554795881959
Net Fixed Assets2,9852,8082,5962,3702,1977688101,079992935
CWIP 942325321440671053
Investments 1,4811,0309537385676165061,7232,7462,419
Inventories5298277921,3271,0203011,3875527901,545
Trade Receivables3891,7419821,3231,103723675606801788
Cash Equivalents 50198146115196172163122375507
Others Assets5381,0614224324991,7821,3291,227841793
Total Assets 6,0667,6875,9186,3375,5964,4014,9385,3206,5516,991

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 41525633626679125316378193-323
PBT -28-25-179264196-3933971,300595707
Adjustment 350333385430245888-64-665-262-101
Changes in Working Capital 106-47131-461308-238-249-108-22-854
Tax Paid -14-4-23343-3-68-149-117-74
Cash Flow From Investing Activity -855795350188-236359-198-163454
Capex -93-28-43-89-39-28-141-1373677
Net Investments -75325156282182-26575-832-1,002505
Others 160261-181574658425647103-129
Cash Flow From Financing Activity -772-732-488-594-902-39-374-197235-26
Net Proceeds from Shares 0000000106
Net Proceeds from Borrowing -584-468-229-124-117-124-37-7713303
Interest Paid -216-204-190-195-102-74-70-32-53-70
Dividend Paid -15-15-16-16-16-16-274-13-130-130
Others 44-44-54-259-6671746-77405-135
Net Cash Flow -36581-562278-231-17265104
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)-0.55-0.82-7.0510.157.97-11.0319.2348.2816.9316.26
ROCE (%)3.284.360.6113.8812.14-2.2323.8148.9917.6718.34
Asset Turnover Ratio0.60.740.580.730.680.830.911.030.891.02
PAT to CFO Conversion(x)N/AN/AN/A1.525.34N/A0.050.370.4-0.61
Working Capital Days
Receivable Days5076127941108160444942
Inventory Days734875861065872674662
Payable Days16111720332829383525

Welspun Corp Ltd Stock News

Welspun Corp Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Welspun Corp on 28-Mar-2024 16:01 is ₹513.0.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 28-Mar-2024 16:01 the market cap of Welspun Corp stood at ₹13,500.7.
The latest P/E ratio of Welspun Corp as of 28-Mar-2024 16:01 is 24.01.
The latest P/B ratio of Welspun Corp as of 28-Mar-2024 16:01 is 4.00.
The 52-week high of Welspun Corp is ₹625.0 and the 52-week low is ₹186.0.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Welspun Corp is ₹8,271 ( Cr.) .

About Welspun Corp Ltd

Welspun Corp Ltd. (WCL), the flagship company of Welspun Group, which is among the Largest Welded Line Pipe manufacturing companies in the world. In the year 2008, the company was ranked as the 2nd Largest (Large Diameter) Pipe Producer by Financial Times UK, and also been awarded 'The Emerging Company of the Year' by Economic Times. With a strong culture of 'Engineering Excellence,' WCL takes pride in manufacturing and supplying to some of the most critical pipelines in the world from its plants in India, Kingdom of Saudi Arabia and USA.  The company has to its credentials supplies to world's one of the deepest pipeline project (Independence Trail in Gulf of Mexico), one of the highest pipeline project (Peru LNG), one of the longest pipeline (Canada to US) and the project involving supplies of one of the heaviest pipe  (56 inch X 1.34inch in Persian Gulf). WCL has a list of  esteemed clientele which includes Chevron, DOW, Elpaso, Enterprise, Exxon Mobil, GAIL, Hunt Oil, Kinder Morgan, PTTEP, Qatar Petroleum, Reliance, Saudi Aramco, Shell, Statoil, TOTAL and TransCanada to name a few.

Business area of the company

The company is a welded line pipe manufacturing company engaged in offering solution in line pipes with a capacity to manufacture longitudinal submerge-arc welded (LSAW), spiral helical submerged arc welded (HSAW) and high frequency electric resistance welded (HFERW)/high frequency induction (HFI) electrical resistance welded (ERW) pipes. The Company also offers coating, bending and double jointing facilities.

Products of the company

  • HFW (High Frequency Welded)
  • ERW (Electric Resistance Welded)
  • HSAW (Horizontal Submerged Arc Welded) 
  • LSAW (Longitudinal Submerged Arc Welded)
  • Plates & Coils 
  • Bends

Certification

  • ISO 9001 certifications
  • ISO 14001 certifications
  • OHSAS 18001 certifications

Awards

  • 2001-03: Export performance Awards.
  • 2004: Fastest Growing Steel Products Company.
  • 2006: Award for the highest export - Iron and Steel based product.
  • 2007: Amongst top 100 Corporates in India.
  • 2007: Amongst the 20 Companies to watch out for in 2008.
  • 2007: Amongst the top 3 SAW Pipe Company in the World.
  • 2007: Fastest Growing Steel Products Company.
  • 2007: Fastest Growing Company.
  • 2008:  2nd Largest Steel Pipe Producer in the World (Large Diameter).  
  • 2008:  Emerging Company of the Year.  
  • 2008:  Most Valuable Company in Metal Pipes.  
  • 2009:  National Awards for Export Excellence - Silver Trophy.
  • 2017-18: Sir M. Visvesvaraya Manufacturing Excellence Award2017 for Mandya plant.
  • 2017-18: 11th QCI-DL Shah Quality Award - Platinum : Awarded at 12th national quality conclave for Anjar plant for the project “Case Study on Weld-ability test”
  • 2017-18: Salute to Greatness Award 2017: Awarded by The Martin Luther King Jr Commission of Little Rock, AR.
  • 2017-18: 2nd Annual EKDKN EXCEED award 2018 – OHS category in engineering sector for the best energy practices for Anjar plant. 
  • 2018-19: Sufi Steel Awards 2018.
  • 2018-19: Golden Bird Excellence Award 2018.
  • 2018-19: 4th EKDKN Exceed Award 2018.
  • 2018-19: 2nd Annual EKDKN EXCEED Award 2018
  • 2018-19: Kaizen Award 2018.
  • 2018-19: 18th Annual Green Tech Environment Gold Award 2018.
  • 2019-20: Anjar Pipes: 19th Annual Greentech Environment Award 2019 for exceptional contribution towards “Environment and Sustainability”.
  • 2019-20: Dahej: Awarded the Silver Medal in National Awards for Manufacturing Competiveness 2018-19 by IRIM.
  • 2019-20: PCMD awarded the prestigious Apex India OHS Excellence Award for outstanding work in the field of Occupation Health & Safety.
  • 2019-20: CEO With HR Orientation - awarded to MD & CEO WCL, from World Sustainability & HRD Congress.
  • 2019-20: Anjar Pipes: Golden Bird Excellence Award - 2020: Awarded for ‘Outstanding Project on Sustainability Excellence’.

Milestones

  • 1997: Diversified into the pipes business - Submerged Arc Welded (SAW) pipe unit at Dahej, Gujarat, India.
  • 1998: Established the first 50,000 MTPA HSAW mill at Dahej, Gujarat.
  • 2000: Commissioned a 200,000 MTPA LSAW mill at Dahej with Mannesmann Germany.
  • 2001: Embarked on a Joint Venture (JV) with Eupec Coatings GmbH, Germany.
  • 2001: Set up a pipe coating facility in Dahej, Gujarat.
  • 2005: Established Welspun City at Anjar, Gujarat.
  • 2005: Expanded pipe facilities at Anjar, Gujarat.
  • 2007: Bagged a 1,700 km keystone project from Trans Canada.
  • 2008: Integrated plate and coil mill at Anjar, Gujarat.
  • 2008: Set up 150,000 MTPA HSAW mill at Anjar, Gujarat.
  • 2008: Achieved Level II automation, rolled X-70API Grade of 4.5 meters wide.
  • 2009: Commissioned a 350,000 MTPA HSAW pipes facility in Arkansas, US.
  • 2009: Started a coil mill at Anjar, Gujarat.
  • 2010: Rechristened as ‘Welspun Corp Limited’.
  • 2010: Increased capacity for LSAW by 350,000 MTPA in Anjar, Gujarat and for HSAW by 100,000 MTPA in Mandya, Karnataka.
  • 2010: Completed investment in the Middle East with a 300,000 MTPA HSAW facility in Saudi Arabia.
  • 2011: Established Welspun Middle East in Dubai.
  • 2011: Acquired 35% stake in Leighton Contractors (India) Private Limited.
  • 2011: Raised USD 290 million through GDRs & CCDs.
  • 2012: Commenced the installation of a 175,000 MTPA HFIW mill in Arkansas, US.
  • 2012: Enhanced the existing capacity of 100,000 MTPA HSAW in Mandya, Karnataka, further by 50%.
  • 2013: Achieved the highest ever pipe production, sales volumes and order booking at 1 million MTPA.
  • 2013: Commissioned a 175,000 MTPA small diameter HFIW mill in the US to cater to the shale gas business.
  • 2013: Demerged non-pipe businesses into Welspun Enterprises.
  • 2013: Strengthened the core-pipe business management team with several new professional CXO-level hires.
  • 2014: Received the first order from Shell USA, single largest order from Saudi Arabia and strategic orders from Statoil, TOTAL and South Stream.
  • 2014: Commissioned a double jointing plant and internal and external coating plants in Saudi Arabia and Anjar (Gujarat), respectively.
  • 2014: Sustained 1 million MTPA in pipe production, sales volumes and order booking.
  • 2015: Recorded high production and sales volumes at the Saudi Arabia facility with significantly improved financial performance.
  • 2015: Stabilized the HFIW mill and streamlined operations at the US facility.
  • 2015: Revitalized operations at LSAW, and Plate and Coil Mills in India.
  • 2016: Surpassed 1 million MTPA in pipe production and 4th sales volumes for the 4 consecutive year; order book at record high.
  • 2016: Set-up Concrete Weight Coating (CWC) plant at Anjar, Gujarat in JV with Wasco Energy Ltd.
  • 2017: Started production at the Concrete Weight Coating plant at Anjar, Gujarat.
  • 2017: Automatic ID Machining of Crack Arrestor Pipe.
  • 2018: Surpassed 1 million MTPA in pipe production and 5th sales volumes for the 5 time in last 6 years.
  • 2019: WCL completed the establishment of an HSAW Line Pipe Manufacturing facility at Bhopal, MP.
  • 2019: WCL announced the divestment of its Plates and Coil Mill Division (PCMD).
  • 2020: WCL secured major offshore pipes supply contract in Australia for the Barossa offshore Development project from Allseas Marine Contractors Australia.
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