Welspun India Ltd Stock Analysis

BSE: 514162 | NSE: WELSPUNIND | Textile | Mid Cap

BSE Share Price 29-Sep-2022 18:01
73.40 -0.40 (-0.54%)

DeciZen - Make an Informed Decision on Welspun India

Overall Rating

1. Quality

2. Valuation

Fair

3. Price Trend

Welspun India Price Chart

P/E Ratio (CD) :
17.96
Market Cap :
7,291.9 Cr.
52-wk low :
62.3
52-wk high :
170.8
Bole Toh?

1. Is Welspun India Ltd a good quality company?

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

2. Is Welspun India Ltd undervalued or overvalued?

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

3. Is Welspun India Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Welspun India 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 India:

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 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'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 14.2%7.2%17.4%18.6%14.4%7.9%8.6%9%10.4%10.1%-
Value Creation Index 0.0-0.50.20.40.1-0.4-0.4-0.4-0.2-0.3-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 3,6474,3735,3035,9226,6386,0506,5276,7417,3409,3119,090
YoY Gr. Rt. %-19.9%21.3%11.7%12.1%-8.9%7.9%3.3%8.9%26.9%-
Adj EPS 2.70.95.67.46.83.64.14.55.46.24.1
YoY Gr. Rt. %--65.4%494.7%33.1%-8.7%-46.5%11.9%9.9%20.4%14.7%-
BVPS (₹) 9.911.114.319.623.925.927.729.636.340.240.4
Adj Net Profit 27394.6562748682364408448540609406
Cash Flow from Ops. 3715519391,328832545807777954587-
Debt/CF from Ops. 5.55.53.32.5464.14.435.4-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 11%7%12.6%26.9%
Adj EPS 9.5%-1.9%14.9%14.7%
BVPS 16.81113.210.7
Share Price 30.3% 1.5% 11.4% -55.6%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 31.5944.24431.214.615.215.616.31610.2
Op. Profit Mgn % 1821.224.627.223.918.616.618.118.514.712.2
Net Profit Mgn % 7.5210.712.810.46.26.56.97.56.64.5
Debt to Equity 2.12.72.21.71.41.31.21.20.80.8-
Working Cap Days 1601661611611651911941981941620
Cash Conv. Cycle 506764636882878581720

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 12.58%

Net Profit is growing at healthy rate in last 3 years 14.91%

Debt to equity has declined versus last 3 years average to 0.80

Return on Equity has declined versus last 3 years average to 10.20%

Sales growth is not so good in last 4 quarters at 9.47%

Latest Financials - Welspun India Ltd.

Standalone Consolidated
TTM EPS (₹) 2.4 4.1
TTM Sales (₹ Cr.) 6,354 9,090
BVPS (₹.) 35.3 40.4
Reserves (₹ Cr.) 3,388 3,892
P/BV 2.09 1.83
PE 30.54 17.96
From the Market
52 Week Low / High (₹) 62.30 / 170.75
All Time Low / High (₹) 0.30 / 170.75
Market Cap (₹ Cr.) 7,292
Equity (₹ Cr.) 98.8
Face Value (₹) 1
Industry PE 21.3

Management X-Ray of Welspun India :

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 India

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

About Welspun India Ltd

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.

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