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Last Updated on: 24 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 532553 | NSE: WELENT

Welspun Enterprises Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 9:17 pm

Market Cap 6,338 Cr.
Current Price 458
High / Low619/270
Stock P/E18.8
Book Value 176
Dividend Yield0.65 %
ROCE18.4 %
ROE12.6 %
Face Value 10.0
PEG Ratio0.93

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Welspun Enterprises Ltd

Competitors of Welspun Enterprises Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
IITL Projects Ltd 26.4 Cr. 52.967.2/15.08.18 70.70.00 %%% 10.0
HB Estate Developers Ltd 174 Cr. 89.4125/41.023.4 80.10.00 %7.00 %2.39 % 10.0
Hazoor Multi Projects Ltd 1,109 Cr. 56.363.9/15.213.2 19.50.53 %%% 1.00
Gyan Developers & Builders Ltd 6.64 Cr. 22.133.8/6.74 12.70.00 %4.02 %3.75 % 10.0
GG Dandekar Properties Ltd 54.0 Cr. 114163/87.4 96.90.00 %1.27 %9.45 % 1.00
Industry Average17,715.80 Cr273.1343.99129.970.16%24.93%17.75%22.76

All Competitor Stocks of Welspun Enterprises Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales372291224476690530692845699646707821907
Expenses341265211402655483624750594563581710767
Operating Profit312614743548689510583126111140
OPM %8%9%6%16%5%9%10%11%15%13%18%14%15%
Other Income41252433491213811175144293846
Interest34202022242731372727282830
Depreciation3444333436999
Profit before tax352613805813841617212694118112148
Tax %27%15%4%19%15%4%3%17%26%26%32%31%26%
Net Profit262213654913340214293698078110
EPS in Rs1.701.490.844.313.238.8126.729.436.634.485.175.047.08

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: September 23, 2024, 3:14 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales4212438261893051,0671,7871,8081,5301,3422,7582,8723,081
Expenses3172348262363379901,6081,6171,3651,1952,5112,4472,621
Operating Profit10510-1-47-3277179191164147247425460
OPM %25%4%-0%-25%-10%7%10%11%11%11%9%15%15%
Other Income14-223883789593112142103668162157
Interest4740138131033547711083119110113
Depreciation68358827212411231616132833
Profit before tax3-6811-415116207203180152783449471
Tax %-105%-10%94%-116%67%40%39%25%28%17%7%29%
Net Profit6-6111569127151130126726319336
EPS in Rs1.47-15.250.170.040.344.718.5610.038.668.3348.1921.3221.77
Dividend Payout %0%0%0%0%223%32%23%20%17%18%0%0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-1116.67%101.64%0.00%400.00%1280.00%84.06%18.90%-13.91%-3.08%476.19%-56.06%
Change in YoY Net Profit Growth (%)0.00%1218.31%-101.64%400.00%880.00%-1195.94%-65.16%-32.80%10.83%479.27%-532.25%

Welspun Enterprises Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:28%
5 Years:10%
3 Years:23%
TTM:12%
Compounded Profit Growth
10 Years:27%
5 Years:21%
3 Years:32%
TTM:6%
Stock Price CAGR
10 Years:30%
5 Years:43%
3 Years:66%
1 Year:43%
Return on Equity
10 Years:6%
5 Years:10%
3 Years:11%
Last Year:13%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 6:33 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital4040173174147148148148149150150137137
Reserves4814191,3421,2471,1111,1911,3061,4311,5361,6412,2062,1872,301
Borrowings378325447941504605928122,2372,5267647621,217
Other Liabilities115781551012124018447258611,5711,9811,8431,783
Total Liabilities1,0148612,1181,6161,6212,1992,8903,1164,7835,8885,1004,9295,437
Fixed Assets57953550116911027801071031,87170289320
CWIP1726215646464120641,40364777
Investments174919541,1108011,1189339488048121,558765838
Other Assets2442104472736459901,7561,9982,4733,1413,4663,8684,272
Total Assets1,0148612,1181,6161,6212,1992,8903,1164,7835,8885,1004,9295,437

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +218-11-10-17-24-287-116-589287345-344
Cash from Investing Activity +-17888691161327-250-139-50-918-4871,197-45
Cash from Financing Activity +-75-56-102-36-12226853106753125-204-486
Net Cash Flow-3521580108181-270-202-2-156-751,338-876

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-273.00-315.00-448.00-141.00-182.00-383.00-413.00-621.00162.00145.00-517.00-337.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days777015722312573832374354
Inventory Days32242101681121
Days Payable1792251278344451359
Cash Conversion Cycle-70-13154-3061257383237-327-183
Working Capital Days-65134154-999372733-212580
ROCE %6%-0%-1%1%3%11%13%12%9%5%10%18%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters53.77%53.49%53.52%53.76%53.76%53.76%54.53%54.51%54.51%54.51%54.51%54.51%
FIIs2.29%2.23%2.21%2.25%2.51%3.04%3.73%4.47%4.57%4.55%4.69%4.71%
DIIs3.41%3.18%2.37%2.05%2.05%2.05%2.54%2.25%2.00%1.93%1.77%1.75%
Public40.52%41.09%41.91%41.95%41.69%41.16%39.20%37.32%37.48%37.62%37.63%37.64%
Others0.00%0.00%0.00%0.00%0.00%0.00%0.00%1.44%1.44%1.37%1.37%1.37%
No. of Shareholders57,12157,17956,50449,92147,47360,10751,96753,28458,03558,16763,96165,441

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)21.5148.198.378.6710.04
Diluted EPS (Rs.)21.2548.088.338.609.91
Cash EPS (Rs.)25.4649.349.4410.3112.96
Book Value[Excl.RevalReserv]/Share (Rs.)182.42157.49119.76113.24106.40
Book Value[Incl.RevalReserv]/Share (Rs.)182.42157.49119.76113.24106.40
Revenue From Operations / Share (Rs.)210.41183.9093.56102.75121.76
PBDIT / Share (Rs.)45.1626.0821.5421.0521.65
PBIT / Share (Rs.)43.1425.2020.4719.9820.13
PBT / Share (Rs.)35.1049.4911.1312.5614.92
Net Profit / Share (Rs.)23.4448.468.379.2311.44
NP After MI And SOA / Share (Rs.)21.6248.198.328.6610.03
PBDIT Margin (%)21.4614.1723.0120.4917.78
PBIT Margin (%)20.5013.7021.8819.4416.53
PBT Margin (%)16.6826.9011.8912.2212.25
Net Profit Margin (%)11.1426.358.948.989.39
NP After MI And SOA Margin (%)10.2726.208.898.438.23
Return on Networth / Equity (%)12.7030.676.967.659.42
Return on Capital Employeed (%)17.5012.327.057.8714.29
Return On Assets (%)5.9614.152.112.694.77
Long Term Debt / Equity (X)0.240.121.291.210.30
Total Debt / Equity (X)0.320.311.401.270.47
Asset Turnover Ratio (%)0.570.500.310.440.63
Current Ratio (X)2.031.901.061.311.39
Quick Ratio (X)1.931.861.031.311.39
Inventory Turnover Ratio (X)3.875.802.412.1712.23
Dividend Payout Ratio (NP) (%)4.6218.6717.9123.0519.89
Dividend Payout Ratio (CP) (%)4.2218.3415.8820.5117.27
Earning Retention Ratio (%)95.3881.3382.0976.9580.11
Cash Earning Retention Ratio (%)95.7881.6684.1279.4982.73
Interest Coverage Ratio (X)5.613.292.302.844.15
Interest Coverage Ratio (Post Tax) (X)4.182.701.902.243.20
Enterprise Value (Cr.)4598.042102.483333.123553.631212.79
EV / Net Operating Revenue (X)1.600.762.382.320.67
EV / EBITDA (X)7.465.3810.3311.343.77
MarketCap / Net Operating Revenue (X)1.450.680.771.060.33
Retention Ratios (%)95.3781.3282.0876.9480.10
Price / BV (X)1.790.790.610.960.38
Price / Net Operating Revenue (X)1.450.680.771.060.33
EarningsYield0.070.380.110.070.24

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Welspun Enterprises Ltd as of November 24, 2024 is: 419.62

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 24, 2024, Welspun Enterprises Ltd is Overvalued by 8.38% compared to the current share price 458.00

Intrinsic Value of Welspun Enterprises Ltd as of November 24, 2024 is: 504.57

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 24, 2024, Welspun Enterprises Ltd is Undervalued by 10.17% compared to the current share price 458.00

Last 5 Year EPS CAGR: 20.25%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of 27.00, which is a positive sign.
  2. The stock has a low average Cash Conversion Cycle of -69.33, which is a positive sign.
  3. The company has higher reserves (1,415.31 cr) compared to borrowings (828.00 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (153.54 cr) and profit (193.69 cr) over the years.
  1. The stock has a low average ROCE of 7.25%, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Welspun Enterprises Ltd:
    1. Net Profit Margin: 11.14%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 17.5% (Industry Average ROCE: 24.93%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 12.7% (Industry Average ROE: 17.75%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 4.18
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.93
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 18.8 (Industry average Stock P/E: 43.99)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.32
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Welspun Enterprises Ltd. is a Public Limited Listed company incorporated on 20/12/1994 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L45201GJ1994PLC023920 and registration number is 023920. Currently Company is involved in the business activities of Construction and maintenance of motorways, streets, roads, other vehicular and pedestrian ways, highways, bridges, tunnels and subways. Company’s Total Operating Revenue is Rs. 1306.94 Cr. and Equity Capital is Rs. 149.78 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Construction, Contracting & EngineeringWelspun City, Village Versamedi, Kutch Dist. Gujarat 370110companysecretary_wel@welspun.com
http://www.welspunenterprises.com
Management
NamePosition Held
Mr. Balkrishan GoenkaChairman & Executive Director
Mr. Sandeep GargManaging Director
Mr. Rajesh MandawewalaNon Exe.Non Ind.Director
Mr. S MadhavanLead Independent Director
Dr. Aruna SharmaIndependent Director
Mr. Raghav ChandraIndependent Director
Dr. Anoop Kumar MittalIndependent Director

FAQ

What is the latest intrinsic value of Welspun Enterprises Ltd?

The latest intrinsic value of Welspun Enterprises Ltd as on 24 November 2024 is ₹419.62, which is 8.38% lower than the current market price of ₹458.00.

What is the Market Cap of Welspun Enterprises Ltd?

The Market Cap of Welspun Enterprises Ltd is 6,338 Cr..

What is the current Stock Price of Welspun Enterprises Ltd as on 24 November 2024?

The current stock price of Welspun Enterprises Ltd as on 24 November 2024 is 458.

What is the High / Low of Welspun Enterprises Ltd stocks in FY 2024?

In FY 2024, the High / Low of Welspun Enterprises Ltd stocks is 619/270.

What is the Stock P/E of Welspun Enterprises Ltd?

The Stock P/E of Welspun Enterprises Ltd is 18.8.

What is the Book Value of Welspun Enterprises Ltd?

The Book Value of Welspun Enterprises Ltd is 176.

What is the Dividend Yield of Welspun Enterprises Ltd?

The Dividend Yield of Welspun Enterprises Ltd is 0.65 %.

What is the ROCE of Welspun Enterprises Ltd?

The ROCE of Welspun Enterprises Ltd is 18.4 %.

What is the ROE of Welspun Enterprises Ltd?

The ROE of Welspun Enterprises Ltd is 12.6 %.

What is the Face Value of Welspun Enterprises Ltd?

The Face Value of Welspun Enterprises Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Welspun Enterprises Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE