X

Welspun Corp Ltd Stock Analysis

Small Cap
Evaluated by 1745 users | BSE: 532144 | NSE: WELCORP |
Steel & Iron Products
Welspun Corp, earlier known as Welspun Gujarat Stahl Rohren (WGSRL), a manufacturing hub for state-of-the-art pipe and related niche products, was incorporated in 1995. It is the preferred choice for the energy transportation sector - be it oil, gas or water. In 2010 Company has changed its...

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 Corp Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 9.8%4.29%4.06%6%4.04%3.33%7.75%7.71%-0.79%18.14%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 6,2705,7706,6324,8684,9493,7724,3465,2485,7074,800
Y-o-Y Gr. Rt.--8%15%-26.6%1.7%-23.8%15.2%20.8%8.8%-15.9%
Adjusted EPS (Rs.) 19.274.733.447.710.94-0.64.455.13-3.8613.47
Y-o-Y Gr. Rt.--75.5%-27.3%124.1%-87.8%-163.8%NA15.3%-175.2%NA
Book Value per Share (Rs.) 149.08156.37167.4474.370.961.4668.2372.2361.5659.46
Adjusted Net Profit 39410890.320324.7-16118136-102351
Net Op. Cash Flow (Rs. Cr.) 979827-80.141525633626679225316.2
Debt to Cash Flow from Ops 2.734.59-37.446.368.375.575.550.882.9648.76
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 Corp Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -2.9%-0.6%3.4%-15.9%
Adjusted EPS -3.9%70.3%44.7%NA
Book Value per Share -9.7-3.5-4.5-3.4
Share Price 6.4% 3.1% 0.2% -8.1%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 13.623.262.276.381.29-0.916.867.31-5.7721.98
Operating Profit Margin (%) 12.696.447.2712.477.78.5711.916.59-0.067.5
Net Profit Margin (%) 6.291.871.364.170.5-0.422.712.59-1.797.32
Debt to Equity 0.871.070.681.351.151.150.820.360.460.51
Working Capital Days 157200178169181271215198173235
Cash Conversion Cycle 901341191101151891641397796
Entity Percentage Holding
Promoters 48.22%
Institutions 17.32%
Non-Institutions 34.46%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Welspun Corp Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Welspun Corp Ltd is a below average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Welspun Corp Ltd's performance infers:

Welspun Corp Ltd earnings have grown by 70.3%, whereas share price has appreciated 3.1% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Welspun Corp Ltd share prices over the last 10 years. Here is what we found out:

Welspun Corp Ltd share price has appreciated -2.3% annually over the past ten years.

Welspun Corp, earlier known as Welspun Gujarat Stahl Rohren (WGSRL), a manufacturing hub for state-of-the-art pipe and related niche products, was incorporated in 1995. It is the preferred choice for the energy transportation sector - be it oil, gas or water. In 2010 Company has changed its name from Welspun Gujarat Stahl Rohren Ltd. to Welspun Corp Ltd.

WGSRL, the flagship company of the Welspun Group and the second largest (large diameter) pipe producer in the

Welspun Corp, earlier known as Welspun Gujarat Stahl Rohren (WGSRL), a manufacturing hub for state-of-the-art pipe and related niche products, was incorporated in 1995. It is the preferred choice for the energy transportation sector - be it oil, gas or water. In 2010 Company has changed its name from Welspun Gujarat Stahl Rohren Ltd. to Welspun Corp Ltd.

WGSRL, the flagship company of the Welspun Group and the second largest (large diameter) pipe producer in the world (financial times UK, 2008) and the emerging company of the year (Economic Times Corporate Excellence Awards, 2008). With a strong culture of ‘Engineering Excellence', WGSRL is all set to be the world's largest pipe company with an increase in capacity from 1.5 million ton per annum to 1.8 million ton by March 2011. 

The company has supplied high end pipes for most critical projects in the deepest of ocean (Independence Trail Project, Gulf of Mexico) to the toughest of terrain (Rockies Mountain, USA). Clients include Transcanada, Enterprise, Kinder Morgan, Texas Gas, British Petroleum, Hunt Oil, Saudi Aramco, Elpaso, Exxon Mobil, Qatar Petro DOW, and Gazprom to name a few.   

Products of the company

Anjar - L-Saw Mill, Anjar - Spiral Mill 2, Anjar - HFERW Pipes (Mill1), Anjar - HFERW Pipes (Mill2), Anjar - Coating Mill, Anjar - Bending Mill, Dahej - L-Saw Mill, Dahej - Spiral Mill, and Dahej - Coating Mill

Subsidiary

Welspun Tubular LLC

Group Companies

  • Welspun India
  • Welspun Zucchi Textiles
  • Welspun Syntex
  • Welspun Global Brands
  • Welspun Retail
  • Welspun UK
  • Sorema, Portugal
  • Welspun Mexico SA DE CV
  • Welspun USA Inc.

Awards

  • 2009:  National Awards for Export Excellence - Silver Trophy  
  • 2008:  Most Valuable Company in Metal Pipes 
  • 2008:  Emerging Company of the Year 
  • 2008:  2nd Largest Steel Pipe Producer in the World (Large Diameter) 
  • 2007:  Fastest Growing Company
  • 2007:  Fastest Growing Steel Products Company
  • 2007:  Amongst the top 3 SAW Pipe Company in the World
  • 2007: Amongst the 20 Companies to watch out for in 2008
  • 2007: Amongst top 100 Corporates in India
  • 2006: Award for the highest export - Iron and Steel based product
  • 2004: Fastest Growing Steel Products Company
  • 2001-03: Export performance Awards

Certification / Recognition

  • ISO 9001
  • ISO 14001
  • OHSAS 18001 certifications

Achievements

  • First to supply large diameter line-pipes for off-shore application to USA
  • First to produce the highest recognized line-pipe grade i.e. X-80
  • First to complete execution of 42” coated pipes to GAIL
  • Highest production recorded for a day for LSAW plant– 1,750 MT
  • Strong order book from Middle East, US, Indonesia and other countries
  • First to set up the plate-cum-coil mill, one of the only three mills in the world.
  • First to set up a spiral pipe facility in Little Rock, Arkansas, US with a capacity to produce 300,000 tonnes per annum
  • First to produce steel plates of up to 4.5 meter wide.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

Callback