WELCORP - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Investment Rating: 4.2

🏗️ Fundamental Analysis of Welspun Corp Ltd (WELCORP)

✅ Strengths

Robust Profitability

ROCE: 21.2%, ROE: 18.5% — strong capital efficiency, ideal for long-term compounding

EPS: ₹76.6, with Qtr Profit Growth: +40.8% — consistent earnings momentum

Attractive Valuation

P/E: 15.0 vs Industry PE: 23.8 — undervalued relative to peers

PEG Ratio: 0.38 — suggests earnings growth is not overpriced

Book Value: ₹284 vs Price: ₹925 — ~3.3x book, reasonable for industrials

Financial Strength

Debt-to-Equity: 0.15 — low leverage, balance sheet flexibility

Dividend Yield: 0.54% — modest but stable

Technical Positioning

Price above DMA 50: ₹894 and DMA 200: ₹802 — bullish structure

RSI: 53.3 — neutral zone, room for upside

Volume significantly above average — strong market interest

⚠️ Risks & Watchpoints

MACD: -1.72 — short-term bearish crossover, watch for trend confirmation

FII Hold ↓ 0.05% — slight foreign investor trimming

52W Index: 82.2% — stock has already run up significantly from its lows

📉 Ideal Entry Price Zone

Entry Zone: ₹880–₹910

Near DMA 50 and below current price

Offers better margin of safety and trend support

🧭 Long-Term Investment Outlook

Welspun Corp is a strong long-term candidate, especially for investors seeking exposure to infrastructure, oil & gas pipelines, and export-driven industrials. Its valuation, growth metrics, and capital efficiency make it compelling.

Holding Period: 3–5 years

Reassess if ROE drops below 15% or PEG rises above 1.0

Monitor order book strength and global infrastructure demand

🚪 Exit Strategy (If Already Holding)

Partial Exit Zone: ₹980–₹995

Near 52-week high and psychological resistance

Full Exit

If ROE drops below 14% for 2+ quarters

If PEG rises above 1.5 without earnings acceleration

If price breaks below ₹800 and fails to recover

Reinvest: On dips near ₹880 if fundamentals remain intact

Would you like a comparison with peers like Ratnamani Metals, Jindal SAW, or Tata Steel Pipes to evaluate sector positioning and diversification?

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