⚠ 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 | 11,845 Cr. | Current Price | 123 ₹ | High / Low | 155 ₹ |
| Stock P/E | 28.9 | Book Value | 42.2 ₹ | Dividend Yield | 1.38 % | ROCE | 13.8 % |
| ROE | 13.2 % | Face Value | 1.00 ₹ | DMA 50 | 128 ₹ | DMA 200 | 131 ₹ |
| Chg in FII Hold | 0.06 % | Chg in DII Hold | 1.85 % | PAT Qtr | 148 Cr. | PAT Prev Qtr | 76.0 Cr. |
| RSI | 46.5 | MACD | -2.16 | Volume | 24,02,087 | Avg Vol 1Wk | 34,79,276 |
| Low price | 105 ₹ | High price | 155 ₹ | PEG Ratio | 3.35 | Debt to equity | 0.41 |
| 52w Index | 37.1 % | Qtr Profit Var | -15.9 % | EPS | 4.27 ₹ | Industry PE | 17.6 |
📊 Core Financials
- Revenue & Profitability: Quarterly PAT rose from 76 Cr. to 148 Cr., but YoY profit variation is negative (-15.9%), showing volatility in earnings.
- Margins & Returns: ROCE at 13.8% and ROE at 13.2% indicate moderate efficiency and profitability.
- Debt Ratios: Debt-to-equity at 0.41 reflects moderate leverage, manageable but worth monitoring.
- Cash Flows: Dividend yield of 1.38% provides steady shareholder returns, supported by consistent cash generation.
💹 Valuation Indicators
- P/E Ratio: 28.9 vs industry average of 17.6 → trades at a premium.
- P/B Ratio: Current Price / Book Value ≈ 2.9 → moderately above intrinsic value.
- PEG Ratio: 3.35 → signals overvaluation relative to growth.
- Intrinsic Value: Current price (123 ₹) appears slightly expensive compared to fundamentals.
🏢 Business Model & Competitive Advantage
- Operates in home textiles and lifestyle products with strong brand presence.
- Diversified product portfolio and export markets provide resilience.
- Moderate efficiency ratios limit competitive edge compared to industry leaders.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between 115 ₹ – 120 ₹, near support levels.
- Long-Term Holding: Suitable for investors seeking exposure to consumer lifestyle growth, but staggered buying recommended due to valuation risks.
✅ Positive
- Dividend yield of 1.38% provides steady income.
- Quarterly PAT doubled sequentially from 76 Cr. to 148 Cr.
- DII holdings increased (+1.85%), reflecting strong domestic institutional confidence.
⚠️ Limitation
- High P/E ratio (28.9) compared to industry average.
- PEG ratio of 3.35 signals overvaluation relative to growth.
- Moderate debt-to-equity ratio (0.41) requires monitoring.
📉 Company Negative News
- Stock trading below both 50 DMA (128 ₹) and 200 DMA (131 ₹), indicating weak momentum.
- RSI at 46.5 and negative MACD (-2.16) suggest bearish technical outlook.
- FII holdings increased only marginally (+0.06%), showing limited foreign confidence.
📈 Company Positive News
- Sequential PAT growth from 76 Cr. to 148 Cr. shows strong recovery.
- DII holdings increased significantly (+1.85%), supporting domestic confidence.
🏭 Industry
- Industry P/E at 17.6 indicates sector trades at lower multiples.
- Textiles and lifestyle sector benefits from rising consumer demand and exports.
- WELSPUNLIV trades at a premium, reflecting brand strength but limited efficiency.
🔎 Conclusion
WELSPUNLIV demonstrates moderate fundamentals with steady dividend yield and sequential profit recovery, but trades at a premium compared to industry peers. Entry is advisable near 115 ₹ – 120 ₹ for long-term investors, with staggered accumulation to mitigate valuation risks. Overall, the company remains strategically positioned in the lifestyle and textile sector, though earnings volatility and technical weakness warrant caution.
I can also outline support and resistance levels with RSI/MACD signals to refine entry timing for WELSPUNLIV if you’d like.