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Welspun India Ltd Stock Analysis

Mid Cap
Evaluated by 2238 users | BSE: 514162 | NSE: WELSPUNIND |
Textile
Welspun India Ltd. (WIL) a Welspun Group company, started its activities in 1985 as Welspun Winilon Silk Mills Pvt. Ltd, a synthetic yarn business which went on to become Welspun Polyesters (India) Ltd. and finally, Welspun India Limited emerged in the year 1995.The company offers a variety of...

Analysis of Financial Track Record

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 India 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'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Capital Employed 7.71%14.24%7.19%17.42%18.61%14.41%7.93%8.59%9.04%10.36%-
Value Creation Index -0.190.50-0.240.830.960.52-0.17-0.10-0.050.09-
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 3,2213,6474,3735,3035,9226,6386,0506,5276,7417,3408,353
Y-o-Y Gr. Rt.-13.3%19.9%21.3%11.7%12.1%-8.9%7.9%3.3%8.9%-
Adjusted EPS (Rs.) 0.722.720.945.597.446.793.634.064.465.377.05
Y-o-Y Gr. Rt.-277.8%-65.4%494.7%33.1%-8.7%-46.5%11.9%9.9%20.4%-
Book Value per Share (Rs.) 8.239.911.0614.2519.6123.8625.9327.6629.5836.2838.49
Adjusted Net Profit 63.827394.6562748682364408448540708
Net Op. Cash Flow (Rs. Cr.) 4173715519391,328832545807777954-
Debt to Cash Flow from Ops 4.75.475.53.292.453.986.024.14.432.98-
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Welspun India Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 9.6%4.4%6.7%8.9%
Adjusted EPS 25%-6.3%13.9%20.4%
Book Value per Share 17.913.111.922.7
Share Price 42.3% 17.5% 24% 116.6%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21TTM
Return on Equity (%) 9.0431.469.0144.2343.9531.2314.5715.1615.5716.3118.86
Operating Profit Margin (%) 13.6818.0321.2224.6327.2223.9218.616.618.1418.5118.7
Net Profit Margin (%) 1.897.471.9810.6812.8410.356.246.56.897.58.48
Debt to Equity 2.682.052.732.151.651.381.261.191.160.78-
Working Capital Days 146160166161161165191194198194-
Cash Conversion Cycle 53506764636882878581-
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Entity Percentage Holding
Promoters 70.00%
Institutions 14.18%
Non-Institutions 15.82%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Past 10 year's financial track record analysis by Moneyworkds4me indicates that Welspun India Ltd is a average quality company.

Welspun India Ltd's earnings have declined by -6.3%, whereas share price has appreciated 17.5% CAGR over the past five years, indicating the company’s share price is likely overvalued. However, for specific investment actions please consult your investment advisor.

Welspun India Ltd share price has appreciated 46% annually (CAGR) over the past ten years.

Past 10 years financial track record analysis and assessment of future prospects by Moneyworks4me indicates that Welspun India Ltd is an average long term investment. However, you need to ensure you buy at a right price to earn good returns.

Welspun India Ltd. (WIL) a Welspun Group company, started its activities in 1985 as Welspun Winilon Silk Mills Pvt. Ltd, a synthetic yarn business which went on to become Welspun Polyesters (India) Ltd. and finally, Welspun India Limited emerged in the year 1995.

The company offers a variety of products like towels in different sizes and qualities, bed linen using state of the art technology and the best quality of Egyptian cotton. Launched organic products utilizing the benefits of Soya,

Welspun India Ltd. (WIL) a Welspun Group company, started its activities in 1985 as Welspun Winilon Silk Mills Pvt. Ltd, a synthetic yarn business which went on to become Welspun Polyesters (India) Ltd. and finally, Welspun India Limited emerged in the year 1995.

The company offers a variety of products like towels in different sizes and qualities, bed linen using state of the art technology and the best quality of Egyptian cotton. Launched organic products utilizing the benefits of Soya, Seaweed, milk and Bamboo.

WIL is Asia 's largest and amongst the top 4 Terry Towel producers in the World. Its business is spread across continents and a distribution network in 32 countries, like USA, UK, Canada, Australia, Italy, Sweden and France. 94% of the total products are exported. 

The company is the preferred supplier to 14 out of top 20 retailers in the world. It endeavors to reach the leadership position in each segment / sector of its product / service. The company is committed to satisfy its customers by providing such quality product / service, which gives highest value for money. Welspun believes that employees are its most important asset through which it can reach the top in each category of its product / service. Therefore, the company will emphasize on their continuous improvement through upgradation of relevant knowledge and training.

Welspun Terry Towels with the inexhaustible range and the claim to produce the softest towels, are engineered to the requirements of the consumer. Highly absorbent and long lasting towels are produced in a range of colours, which state to defy imagination.

Today WIL is a $400 million company with manufacturing facilities in the US, UK, India, Mexico and Portugal, which is expected to become a $1 billion company by the year 2010.

Product range of the company includes:

  • Bath -Embroidered Towels  -Sublistatic  -Stripes  -Bathrobe
  • Bed -Bed Linen
  • Rug -Embroidered Towels  -Sublistatic  -Stripes   
  • Top of Bed -Embroidered Towels  -Sublistatic 

Achievements/ recognition:

  • 2008 Supplier of the Year
  • 2008 Indian Exporters Excellence Awards 
  • 2008 Earth Care Awards – (1st Runner Up - Greenhouse Gas Mitigation) 
  • 2007 Sustainability Award 
  • 2007 4 Gold Trophies for Outstanding Textile Exports 
  • 2007 International Trade Awards - Outstanding Textile Exporter
  • 2006 Gold & Silver Trophies for the year 2005- 06
  • 2005 Gold Trophy for Outstanding export Performance in Made-ups 
  • 2004 Leaders in Innovation  And many more

Certifications:

  • ISO 9001 
  • ISO 14001 
  • OEKOTEX, SWISS 
  • SUPIMA 
  • EGYPT LOGO 
  • EGYPT CERTIFICATE   

Future plans:

Welspun India envisions to become a fully integrated home textile company (Bed and Bath) – from cotton farming to retailing by the year 2010 with the largest market capital in India and to be among the top three Home textile companies in the world.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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