WELSPUNLIV - Fundamental Analysis: Financial Health & Valuation

📊 Financial Overview: Welspun Living Ltd shows stable fundamentals with a ROE of 13.2% and ROCE of 13.8%, indicating decent capital efficiency. The debt-to-equity ratio of 0.43 is manageable, though slightly elevated for a consumer business. The quarterly profit decline of 47.6% (₹76 Cr vs ₹98.2 Cr) raises short-term concerns, but the company maintains a healthy dividend yield of 1.31%.

💰 Valuation Metrics: Trading at a P/E of 28.9, Welspun Living is priced above the industry average of 22.6. The P/B ratio of ~3.2 (Price ₹130 / Book Value ₹40.2) is moderate, but the PEG ratio of 3.34 suggests overvaluation relative to earnings growth. EPS stands at ₹4.50, reflecting modest profitability.

🏢 Business Model & Competitive Edge: As a global leader in home textiles and flooring, Welspun Living benefits from strong brand equity (Spaces, Welspun) and export relationships with major retailers. Its focus on sustainable manufacturing and innovation supports long-term competitiveness, though it remains exposed to raw material and currency volatility.

📉 Entry Zone Recommendation: A favorable entry zone lies between ₹115–₹125, near its 50 DMA of ₹124 and below the 200 DMA of ₹132. RSI at 59.3 indicates neutral momentum, while MACD at 2.91 shows mild bullishness. Accumulation on dips is advised.

📈 Long-Term Holding Guidance: Welspun Living is suitable for long-term investors seeking exposure to domestic consumption and global textile exports. Hold with a 3–5 year horizon, focusing on margin recovery and volume growth.