Check Before You Invest : Welspun Living Ltd

Snapshot

Q.1 Which industry/sub-sector does Welspun Living Ltd belong to?

Welspun Living Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.

Q.2 Is Welspun Living Ltd a good quality company?

Welspun Living Ltd is a good quality company, based on a consistently good 10-year financial track record.

Q.3 Is Welspun Living Ltd undervalued or overvalued?

Welspun Living Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Welspun Living Ltd a good buy now?

Welspun Living Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Welspun Living Ltd?

Welspun Living Ltd revenue growth is 9% for FY-2025, which is below its 5-year CAGR of 9.36%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Welspun Living Ltd?

Welspun Living Ltd Return on capital employed is 15.04% for FY-2025, which is in line with its 5-year historical median of 14.98%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.3 Return on Asset of Welspun Living Ltd?

Welspun Living Ltd Return on Asset is 6.52%, which is in line with its 5-year historical median of 6.57%, indicating stable asset utilization efficiency.

Q.4 Return on Equity (ROE) of Welspun Living Ltd?

Welspun Living Ltd Return on equity is 13.83% for FY-2025, which is below its 5-year historical median of 15.66%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Welspun Living Ltd?

Welspun Living Ltd Cash conversion cycle is 84 days, in line with its 5-year historical median of 81 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	1.07	1.04
ROE	13.83	15.66
ROCE	15.04	14.98
Cash Conversion Cycle	84 days	81 days

Q.6 Gross Profit margin of Welspun Living Ltd?

Welspun Living Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.7% for FY-2025, which is below its 5-year median of 13.9%, indicating decreasing margins.

Q.7 Operating Profit Margin of Welspun Living Ltd?

Welspun Living Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 12.58% for FY-2025, which is below its 5-year median of 14.14% indicating decreasing margins.

Q.8 Net Profit Margin of Welspun Living Ltd?

Welspun Living Ltd Net Profit Margin is 6.11% for FY-2025, is below with its 5-year median of 6.52%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	11.7	13.9
Operating Profit Margin	12.58	14.14
Net Profit Margin	6.11	6.52

Q.9 Debt to Equity ratio of Welspun Living Ltd?

Welspun Living Ltd Debt-to-Equity ratio is 0.51, which is above with the industry average of 0.5, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Welspun Living Ltd?

Welspun Living Ltd Debt to cash flow from operations is 3.59, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Welspun Living Ltd?

Promoters hold 66.24% of the Welspun Living Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Welspun Living Ltd vs industry peers?

Welspun Living Ltd revenue CAGR is 9.36%, compared to the industry median CAGR of 4.23%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	9	4.2
Gross Profit Growth	-9.4	8.6
Operating Profit Growth	-5.1	7.5
Net Profit Growth	-4.3	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	1.07	0.98
ROE	13.83	6.1
ROCE	15.04	7.6
Cash Conversion Cycle (days)	83.74	109

Valuation & price assessment

Q.1 Stock return of Welspun Living Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 2.6% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	2.6%	10.2%	8.5%	2.6%

Q.3 Valuation ratios of Welspun Living Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	53.16	21.69	19.97
Price to Book	2.56	2.74	1.32
Price to Sales	1.29	1.30	1.06
EV to EBITDA	15.89	11.54	9.32

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