Welspun Specialty Solutions Ltd Stock Analysis

BSE: 500365 | NSE: REMIMETAL | Steel & Iron Products | Small Cap

BSE Share Price Jul 04, 09:31
15.95 0.55 (3.57%)

DeciZen - Make an Informed Decision on Welspun Special.Soln

Overall Rating

1. Quality

2. Valuation

Overvalued

3. Price Trend

FAQs

1. Is Welspun Specialty Solutions Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that Welspun Specialty Solutions Ltd is a below average quality company.

2. Is Welspun Specialty Solutions Ltd undervalued or overvalued?

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

3. Is Welspun Specialty Solutions Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Welspun Specialty Solutions 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 Special.Soln:

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 Specialty Solutions Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Value Creation Index Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % -22.2%-9.2%-10.7%-15.2%-16.8%-8.2%-10%-33.4%2.2%-7.8%-
Value Creation Index NANANANANANANANA-0.8NA-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 35441733426823323544129593.4163163
YoY Gr. Rt. %-17.8%-20%-19.7%-13.2%1%87.4%-33%-68.4%74.8%-
Adj EPS -8.4-5.2-5.4-5.7-5.6-5.4-1.2-1.8-0.1-0.6-0.6
YoY Gr. Rt. %-NANANANANANANANANA-
BVPS (₹) -11.6-13.8-18.4-22.1-41-46-6.8-2.50.70.10.1
Adj Net Profit -91.4-56.4-58.2-62.2-60.2-58.9-40.3-88.6-2.7-31.3-31
Cash Flow from Ops. -32.615.5-15.324.917.7-5.3-2.4-26.842.8-87.8-
Debt/CF from Ops. -9.919.5-23.814.434.4-149.9-172.1-144-3.2-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales -8.2%-6.9%-28.2%74.8%
Adj EPS NANANANA
BVPS 000-80
Share Price 13.8% 33.3% 4.8% -0.6%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 89.673.650.437.919.315.31555.98.1-135.4-414.3
Op. Profit Mgn % -6.41.1-2.6-4.7-6.6-4.6-8.3-24-21.1-11.3-11
Net Profit Mgn % -25.8-13.5-17.4-23.2-25.9-25-9.1-30-2.9-19.2-18.8
Debt to Equity -3.8-2.9-2.5-2-1.4-1.6-1.8-3.14.637.235.6
Working Cap Days 180135168172154192154191319243162
Cash Conv. Cycle 474348587194628118914272

Recent Performance Summary

Sales growth is good in last 4 quarters at 74.04%

Return on Equity is Poor

Sales growth has been subdued in last 3 years -28.18%

Debt to equity has increased versus last 3 years average to 37.23

Latest Financials - Welspun Specialty Solutions Ltd.

Standalone Consolidated
TTM EPS (₹) -0.6 -
TTM Sales (₹ Cr.) 163 -
BVPS (₹.) 0.1 -
Reserves (₹ Cr.) -311 -
P/BV 108.53 -
PE 0.00 -
From the Market
52 Week Low / High (₹) 11.50 / 25.15
All Time Low / High (₹) 1.45 / 305.00
Market Cap (₹ Cr.) 816
Equity (₹ Cr.) 318.1
Face Value (₹) 6
Industry PE 5.3

Management X-Ray of Welspun Special.Soln :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *51.2551.2543.9843.9855.9555.9555.9555.9555.9555.95
* Pledged shares as % of Promoter's holding (%)

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Analyst's Notes

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News

About Welspun Specialty Solutions Ltd

Remi Metals Gujarat (RMGL) started in 1960 when Chiranjilal Saraf started manufacturing fractional H P motors & laboratory stirrers under the name of Rajendra Electric Motor Industries.

Remi Metals Gujarat Limited, a Rs 360 crore flagship company of the Remi group is the most ambitious project so far. RMGL is an Integrated Steel (capacity 140,000 TPA) & Seamless Pipe Plant (capacity 50,000 TPA) set up in Jhagadia near Bharuch in Gujarat.

RMGL is an Electric Arc Furnace based integrated steel and seamless pipe plant. RMGL has both Ingot (minimum weight 3T) as well as CC Bloom ( maximum bloom size 300 mm sq.) casting routes of steel making.

RMGL has a Seamless Pipe / Tubes plant to maufacture 50,000 TPA of Carbon Alloy Steel Seamless Pipes / Tubesin hte size range of 1'' to 6 5/8'' in technical collaboration with M/s Intertech GmbH International Technical Assistance, (INTERTECH), Germany. The Company has also in-house Steel manufacturing and rolling capacity of 1,40,000 TPA.

RMGL is located in Gujarat on a 150 acres (60 hectares) plot near village Fulwadi, Taluka Jhagadia, District Bharuch which is 23 km from Ankleshwar, 85 kms from Dahej where a full fledged all weather port is being developed and 85 kms from Essar's Sponge Iron Plant and Hazira.

Power supply is from Jhagadia sub-station by aying a separate Industrial feeder. The project is ideally located as regards proximity to the source of raw materials, water, power, ptransport arrangements and other amenities. Also a gas line is passing just near the project site, from which gas connection wcould be obtained in future, subject to availability of gas.

Different divisions of the company:

  • Steel Melting Shop
  • Casting Facilities
  • Hot Processing of Steel
  • Cold Finishing

Mannesman Demag Huttentechnik, Germany and its Indian counterpart Indomag Steel Technology, world leaders in steel making and seamless pipe technology have designed the key process equipments. Advance steel making technology through 35 MT, Ultra High Power Eccentric Bottom Tapping Arc Furnace, Refining in LRF (Landle Refining Furnace) and Degassing in VD/VOD has been inducted from MDH.The Rolling Mill also designed and manufactured by Mannesmann Demag can provide high reduction ratios in single heating.

Products portfolio of the company include:

Steel Products:

  • Cast Blooms- OctagonsSquares
  • Ingots
  • Rolled Rounds 36
  • RCS/Squares

Tube Products:

  • Hot Finish Tubes
  • Cold Finish Tubes
  • Hot Extruded SS tube
  • Cold Finish SS Tubes
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