⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
WELSPUNLIV - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.6
| Stock Code | WELSPUNLIV | Market Cap | 11,000 Cr. | Current Price | 115 ₹ | High / Low | 155 ₹ |
| Stock P/E | 34.8 | Book Value | 42.2 ₹ | Dividend Yield | 1.49 % | ROCE | 13.8 % |
| ROE | 13.2 % | Face Value | 1.00 ₹ | DMA 50 | 126 ₹ | DMA 200 | 131 ₹ |
| Chg in FII Hold | 0.06 % | Chg in DII Hold | 1.85 % | PAT Qtr | -5.33 Cr. | PAT Prev Qtr | 148 Cr. |
| RSI | 39.5 | MACD | -5.60 | Volume | 32,11,548 | Avg Vol 1Wk | 22,48,503 |
| Low price | 105 ₹ | High price | 155 ₹ | PEG Ratio | 4.02 | Debt to equity | 0.41 |
| 52w Index | 19.9 % | Qtr Profit Var | -106 % | EPS | 3.25 ₹ | Industry PE | 20.5 |
📊 Financial Overview
- Revenue & Profitability: Quarterly PAT dropped sharply from 148 Cr. to -5.33 Cr., showing earnings volatility. EPS at 3.25 ₹ remains modest.
- Margins & Returns: ROCE at 13.8% and ROE at 13.2% indicate moderate efficiency, not industry-leading.
- Debt: Debt-to-equity ratio of 0.41 is relatively high, raising leverage concerns.
- Cash Flow: Supported by operations, but profitability swings raise caution.
💹 Valuation
- P/E Ratio: 34.8 vs Industry PE of 20.5 → Overvalued relative to peers.
- P/B Ratio: Current Price 115 ₹ vs Book Value 42.2 ₹ → Premium valuation.
- PEG Ratio: 4.02 → Expensive relative to growth prospects.
- Intrinsic Value: Current price trades above fair value, limited margin of safety.
🏢 Business Model & Competitive Advantage
- Strong presence in home textiles and lifestyle products.
- Brand recognition and diversified product portfolio provide resilience.
- Efficiency metrics are moderate, limiting competitive edge compared to peers.
📈 Technicals & Entry Zone
- RSI at 39.5 → Near oversold territory, potential accumulation zone.
- MACD negative (-5.60) → Weak momentum, short-term caution advised.
- Entry Zone: Attractive accumulation between 110–115 ₹.
- Long-Term Holding: Suitable for cautious investors, but valuation risks remain.
✅ Positive
- DII holdings increased by 1.85%, showing strong domestic institutional support.
- Dividend yield of 1.49% provides shareholder returns.
- Strong brand presence in lifestyle and home textile products.
⚠️ Limitation
- High P/E and PEG ratios suggest overvaluation.
- Debt-to-equity ratio of 0.41 raises financial risk.
- Quarterly PAT turned negative, highlighting earnings volatility.
📉 Company Negative News
- Quarterly PAT fell sharply from 148 Cr. to -5.33 Cr.
- FII holdings decreased slightly (-0.06%), showing reduced foreign investor confidence.
📈 Company Positive News
- DII holdings increased by 1.85%, reflecting strong domestic institutional support.
- Dividend yield of 1.49% adds shareholder value.
- 52-week performance up 19.9%, showing resilience despite recent weakness.
🏭 Industry
- Industry PE at 20.5 suggests sector trades at lower multiples.
- WELSPUNLIV commands premium valuation due to brand strength, but efficiency metrics lag peers.
🔎 Conclusion
WELSPUNLIV demonstrates resilience with strong brand presence and institutional support, but earnings volatility and high debt raise caution. Valuations are stretched compared to industry peers, limiting upside potential. Entry is favorable near 110–115 ₹ for long-term investors seeking exposure to lifestyle and home textiles. While fundamentals are moderate, cautious long-term holding is advised due to valuation and profitability risks.