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Check Before You Invest : Welspun Enterprises Ltd

BSE: 532553 NSE: WELENT ISIN: INE625G01013
  |   Sector:  Construction & Infrastructure   |   Industry:  Engineering - Construction

Snapshot

Q.1 Which industry/sub-sector does Welspun Enterprises Ltd belong to?
Welspun Enterprises Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.
Q.2 Is Welspun Enterprises Ltd a good quality company?
Welspun Enterprises Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Welspun Enterprises Ltd undervalued or overvalued?
Welspun Enterprises Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Welspun Enterprises Ltd a good buy now?
Welspun Enterprises Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Welspun Enterprises Ltd?
Welspun Enterprises Ltd revenue growth is 15.4% for FY-2025 , which is above its 5 year CAGR of 9.9% , indicating faster growth.
Q.2 Gross Profit margin of Welspun Enterprises Ltd?
Welspun Enterprises Ltd Gross profit margin which is the profit after deduction of direct costs, is 14.9% for FY-2025 , which is above its 5 year median of 10.9% , indicating increasing margins.
Q.3 Operating Profit Margin of Welspun Enterprises Ltd?
Welspun Enterprises Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 12.32% for FY-2025 , which is above its 5 year median of 11.97% indicating increasing margins.
Q.4 Net Profit Margin of Welspun Enterprises Ltd?
Welspun Enterprises Ltd Net Profit Margin is 10.88% for FY-2025 , is in line with with its 5 year median of 10.88%, indicating stable margins.
Current Level Historic Median
Gross Profit Margin 14.9 10.9
Operating Profit Margin 12.32 11.97
Net Profit Margin 10.88 10.88
Q.5 Return on Asset of Welspun Enterprises Ltd?
Welspun Enterprises Ltd Return on Asset is 7.7(x), which is above its 5 year historical median of 7.05(x), indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Welspun Enterprises Ltd?
Welspun Enterprises Ltd Return on equity is 12.04% for FY-2025 , which is above its historical median of 11.68%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Welspun Enterprises Ltd?
Welspun Enterprises Ltd Return on capital employed is 16.27% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 13.5%, indicating value creation.
Q.8 Cash conversion cycle of Welspun Enterprises Ltd?
Welspun Enterprises Ltd Cash conversion cycle is 5 , below its historical median of 5 , indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.71 0.61
ROE 12.04 11.68
ROCE 16.27 15.49
Cash Conversion Cycle 5 5
Q.9 Debt to Equity ratio of Welspun Enterprises Ltd?
Welspun Enterprises Ltd Debt-to-Equity ratio is 0.07 , which is lower with the industry average of 0.38 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Welspun Enterprises Ltd?
Welspun Enterprises Ltd Debt to cash flow from operations is 0.7 , which is at a healthy level, indicating the business is able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Welspun Enterprises Ltd?
Promoters hold 56.13% of the Welspun Enterprises Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Welspun Enterprises Ltd vs industry peers?
Welspun Enterprises Ltd revenue CAGR is 9.94% , compared to the industry median CAGR of 0% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 2,827.4 103.6
Gross Profit 421.2 5.2
Operating Profit 348 6
Net Profit 308 2.6
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.71 0.63
ROE 12.04 6.64
ROCE 16.27 11.13
Cash Conversion Cycle 5.19 51

Valuation & price assessment

Q.1 Stock return of Welspun Enterprises Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 23.5% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 23.5% 32.7% 50.3% -10.4%
Q.3 Valuation ratios of Welspun Enterprises Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 20.44 7.87 27.03
Price to Book 2.14 0.62 1.70
Price to Sales 2.43 0.75 1.45
EV to EBITDA 13.8 5.83 11.36

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