Overview
- Market Cap ₹ 19,159 Cr.
- Current Price ₹ 197
- High / Low ₹ 198 / 112
- Stock P/E 27.8
- Book Value ₹ 46.5
- Dividend Yield 0.05 %
- ROCE 16.1 %
- ROE 15.6 %
- Face Value ₹ 1.00
- Industry PE 29.9
- Promoter holding 70.5 %
- Pledged
percentage 0.00 %
- Debt to equity 0.58
- Profit Prev 12M ₹ 673 Cr.
- EPS ₹ 7.25
- Price to book
value 4.24
- EVEBITDA 13.7
- Price to
Earning 27.8
- No. Eq. Shares 97.2 Cr.
Welspun India Ltd. (WelspunLiv) is a part of the Welspun
Group, one of India's largest conglomerates. The company is a global leader in
home textiles and is known for its innovative and high-quality products,
including towels, bed sheets, and rugs. Welspun serves major retail clients
worldwide, including large chains in the US and Europe.
Key Points:
- Global Presence: Welspun exports to over 50
countries, with a significant market share in the US and Europe.
- Product Range: Specializes in home textiles such
as towels, bed linens, and flooring solutions.
- Innovation: Known for pioneering advanced
textile technologies and sustainable practices.
- Financial
Performance: Welspun has
shown resilience and growth, focusing on expanding its product offerings
and global reach.
- Sustainability: The company emphasizes sustainable practices, including responsible sourcing and eco-friendly production methods.
Welspun continues to focus on innovation, sustainability, and expanding its global footprint to maintain its leadership position in the home textiles industry.
Strong Presence in the USA and Europe
Almost 84% of the revenues come from the exports to US and European regions.
USA accounts for around 67% of the company's sales, followed by the European
Union (17%), India (7%), and the Rest of the World (9%).
Key Partnerships
The company has key customer partnerships with various business giants like
North America: Walmart, amazon, IHG, wyndham, macys etc.
UK & Europe: Tesco, Sainsburys, Ikea, ASDA, John Lewis, JYSK etc.
India: Shoppers Stop, Taj, Myntra, Home Town, HUL, Himalayas etc.
Operating Performance:
- Revenue growth
of 17% year-on-year (Y-on-Y) to ₹2,588 crores in Q1 FY '25.
- Sustained
EBITDA of ₹393 crores, representing a margin of 15.2%, growing 15% Y-on-Y.
- Challenges in
global shipping affecting revenue potential, specifically due to Red Sea
issues leading to container availability constraints.
- Despite global
challenges, long-term relationships with shipping liners have minimized
cost impacts in Q1.
Financial Highlights:
- Profit after
tax at ₹186 crores, a 15% increase Y-on-Y and 27% increase
quarter-on-quarter.
- Consolidated
EPS for Q1 FY '25 at ₹1.93 per share, up from ₹1.66 in Q1 FY
'24.
- Net debt reduced to ₹1,562 crores from ₹1,815 crores, indicating improved financial health despite increased CAPEX.
Market Outlook and Guidance:
- Management
remains cautiously optimistic with a guidance of 12% growth for FY '25.
- EBITDA margin
guidance maintained at 15% to 15.5% for FY '25, with expectations of
margin expansion as supply chain issues stabilize.
- Positive
sentiment in the US market with expectations of increased demand as the
holiday season approaches.