WELSPUNLIV - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 3.7

📊 Core Financials Breakdown

Profitability

ROCE: 13.8% and ROE: 13.2% — respectable, indicating decent capital efficiency.

EPS: ₹4.50, with PAT falling from ₹98.2 Cr. to ₹76.0 Cr. — a 47.6% decline, signaling margin pressure or seasonal softness.

Debt-to-equity: 0.43 — moderate leverage, manageable but worth monitoring.

Dividend Yield: 1.34% — modest, offering passive income potential.

Institutional Sentiment

FII holding declined (-0.60%), while DII increased (+0.31%) — mixed sentiment, with domestic investors showing cautious optimism.

💰 Valuation Metrics

Metric Value Insight

P/E Ratio 28.1 Slightly above industry average (22.8) — mildly overvalued.

P/B Ratio ~3.16 Reasonable for a branded textile and home furnishing company.

PEG Ratio 3.26 High — valuation stretched relative to earnings growth.

Intrinsic Value ~₹115–₹125 (est.) Current price of ₹127 is slightly above fair value.

🧠 Business Model & Competitive Edge

Core Operations: Welspun Living Ltd. (formerly Welspun India) is a leading manufacturer of home textiles including towels, bed linen, rugs, and flooring solutions.

Strengths

Strong export presence with marquee clients like Walmart, Target, and Macy’s.

Integrated supply chain and sustainability-driven manufacturing.

Brand equity in both B2B and B2C segments.

Challenges

Recent earnings contraction and high PEG ratio.

RSI at 59.0 — neutral zone, MACD at 0.79 — mild bullish momentum.

Volume below weekly average — signals reduced short-term interest.

📈 Entry Zone & Technicals

DMA 50: ₹124, DMA 200: ₹135 — price is below long-term average, indicating consolidation.

RSI: 59.0 — neutral zone.

MACD: 0.79 — bullish crossover.

📌 Entry Zone: ₹115–₹122 — attractive for accumulation on dips.

🕰️ Long-Term Holding Guidance

2025 Target: ₹140–₹160

2026–2028 Target: ₹180–₹220

2030 Target: ₹260+

Holding Strategy: Welspun Living is a stable mid-cap textile play with strong fundamentals, global partnerships, and brand-driven growth. Suitable for long-term investors seeking exposure to India’s export and home furnishing sector. Accumulate during technical weakness and hold through cycles.

You can explore Welspun Living’s live share dashboard or review its fundamental analysis summary for deeper insights

1

2

.

1

trendlyne.com

2

choiceindia.com

Edit in a page