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Last Updated on: 18 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo
Stock Ticker - BSE: 532144 | NSE: WELCORP

Welspun Corp Ltd: Share Price Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: December 18, 2024, 8:59 pm

Market Cap 20,664 Cr.
Current Price 788
High / Low 824/440
Stock P/E18.8
Book Value 230
Dividend Yield0.63 %
ROCE20.2 %
ROE19.8 %
Face Value 5.00
PEG Ratio2.06

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

View Share Price Target for Welspun Corp Ltd

Competitors of Welspun Corp Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Mukat Pipes Ltd 24.2 Cr. 20.4 26.0/9.54173 5.760.00 %%% 5.00
Hariom Pipe Industries Ltd 1,753 Cr. 565 889/44029.3 1780.11 %14.6 %13.5 % 10.0
Earthstahl & Alloys Ltd 51.4 Cr. 42.0 66.0/0.0034.0 30.70.00 %8.22 %5.21 % 10.0
Crimson Metal Engineering Company Ltd 4.57 Cr. 10.3 10.3/9.38 12.50.00 %7.27 %21.7 % 10.0
Welspun Corp Ltd 20,664 Cr. 788 824/44018.8 2300.63 %20.2 %19.8 % 5.00
Industry Average9,803.23 Cr611.4350.85145.940.33%16.71%14.57%4.69

All Competitor Stocks of Welspun Corp Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales1,2991,5421,4422,0111,3221,9642,4024,0704,0694,0594,7504,4613,137
Expenses1,1341,4271,3471,9401,2932,0952,2363,6503,7123,6604,2874,1312,763
Operating Profit165115957129-131166421357400463330374
OPM %13%7%7%4%2%-7%7%10%9%10%10%7%12%
Other Income405458415761913891502276217883
Interest17232730314770959275627566
Depreciation55636463617080918686908785
Profit before tax133836139313-5853325228466373347305
Tax %27%33%37%33%107%9%56%26%26%17%21%17%19%
Net Profit975539264-1-6323240168387294287248
EPS in Rs3.742.401.759.050.16-2.160.899.026.3214.7011.1510.249.46

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
Sales9,0837,7058,4507,2365,8996,3478,9539,9577,1536,5059,75817,34016,408
Expenses8,3847,0357,5956,4495,3805,8748,3108,7946,3696,0329,26415,77814,841
Operating Profit6996708557875194736441,1637844734941,5611,567
OPM %8%9%10%11%9%7%7%12%11%7%5%9%10%
Other Income-261749699139128-106281629544386504549
Interest35829628324123617017714485102243304278
Depreciation353406436386386258260233246255303348347
Profit before tax-39141231258361731011,0671,0826613341,4131,491
Tax %126%31%8%31%72%12%122%39%24%33%40%20%
Net Profit-929821417910153-226548274441991,1361,215
EPS in Rs-2.672.792.625.721.005.97-0.5024.3629.4216.827.9042.4445.55
Dividend Payout %-19%18%19%9%50%8%-100%43%17%30%63%12%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)206.52%118.37%-16.36%-94.41%1430.00%-114.38%3072.73%26.45%-46.31%-55.18%470.85%
Change in YoY Net Profit Growth (%)0.00%-88.15%-134.72%-78.06%1524.41%-1544.38%3187.11%-3046.27%-72.76%-8.87%526.03%

Welspun Corp 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:8%
5 Years:14%
3 Years:34%
TTM:7%
Compounded Profit Growth
10 Years:32%
5 Years:91%
3 Years:18%
TTM:36%
Stock Price CAGR
10 Years:28%
5 Years:42%
3 Years:68%
1 Year:46%
Return on Equity
10 Years:9%
5 Years:14%
3 Years:12%
Last Year:20%

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 Capital131131132133133133133130130130131131131
Reserves5,5262,7182,6672,6662,6772,7212,6653,0853,9524,2984,5825,4675,907
Borrowings5,5773,8243,0212,6441,8431,3861,3051,0611,0212,0573,3811,9672,262
Other Liabilities5,6482,1573,9983,1953,5953,4524,0973,6672,5882,6847,1804,2494,382
Total Liabilities16,8838,8309,8188,6378,2477,6938,2007,9437,6929,16915,27411,81312,682
Fixed Assets8,0214,9234,6623,7303,3563,0461,5671,6172,5992,4334,9104,8004,861
CWIP5461158034321747831471,2618787417
Investments1,8671,1408051,0177254884767841,7132,3071,5371,1001,645
Other Assets6,4482,6534,2713,8554,1344,1436,1105,4603,2333,1688,7405,8275,759
Total Assets16,8838,8309,8188,6378,2477,6938,2007,9437,6929,16915,27411,81312,682

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +103227901354403981623648774218-1851,306
Cash from Investing Activity +-164-229338-326618184-255-49-848-201-348373
Cash from Financing Activity +-265-527-1,106-99-979-761-335-743-198453909-1,877
Net Cash Flow-327-528133-714240533-144-271470376-198

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow694.00667.00852.00785.00518.00472.00643.000.00783.00471.00491.000.00

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 Days713049719176484634464338
Inventory Days15694138107159125129127937828670
Days Payable184481541321981779281557513068
Cash Conversion Cycle4277334552248692724819940
Working Capital Days143027344723565055-132628
ROCE %5%5%8%8%5%7%12%30%19%13%6%22%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters50.01%50.01%50.01%50.01%49.90%49.90%49.99%49.99%49.96%49.96%50.14%50.03%
FIIs9.06%6.12%7.34%8.95%9.03%7.96%7.27%7.78%9.42%10.56%10.70%10.51%
DIIs7.41%6.72%9.30%10.57%11.19%11.04%11.43%10.96%11.53%11.23%11.99%9.74%
Government0.00%0.00%0.00%0.00%0.01%0.01%0.01%0.01%0.02%0.00%0.00%0.00%
Public33.52%37.15%33.35%30.47%29.87%31.10%31.29%31.28%29.05%28.22%27.13%29.67%
Others0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.03%0.03%0.03%0.03%
No. of Shareholders1,14,3471,01,53392,53292,82696,69087,64385,79483,31582,05899,2841,19,4661,23,491

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
DSP Small Cap Fund5,167,0792.19303.511,279,5672024-12-17303.81%
360 ONE Focused Equity Fund1,706,5821.6100.241,279,5672024-12-1733.37%
Motilal Oswal ELSS Tax Saver Fund1,432,8542.7884.171,279,5672024-12-1711.98%
Motilal Oswal Large and Midcap Fund1,279,5672.2875.161,279,5672024-12-170%
DSP Tiger Fund1,007,3301.8759.171,279,5672024-12-17-21.28%
ITI Small Cap Fund489,4091.3828.751,279,5672024-12-17-61.75%
ITI ELSS Tax Saver Fund139,8003.088.211,279,5672024-12-17-89.07%
Nippon India Nifty Smallcap 250 Index Fund93,0180.525.461,279,5672024-12-17-92.73%
Motilal Oswal Nifty Smallcap 250 Index Fund56,8720.513.341,279,5672024-12-17-95.56%
SBI Nifty Smallcap 250 Index Fund47,2450.52.781,279,5672024-12-17-96.31%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue5.005.005.005.005.00
Basic EPS (Rs.)42.457.9116.8229.4224.12
Diluted EPS (Rs.)42.327.8916.7729.3424.06
Cash EPS (Rs.)46.7016.3227.0035.9626.12
Book Value[Excl.RevalReserv]/Share (Rs.)213.92180.21173.50161.33123.78
Book Value[Incl.RevalReserv]/Share (Rs.)213.92180.21173.50161.33123.78
Revenue From Operations / Share (Rs.)662.68373.10249.29274.16381.65
PBDIT / Share (Rs.)68.9430.7639.2044.1548.90
PBIT / Share (Rs.)55.6519.1829.4434.7139.96
PBT / Share (Rs.)44.019.8825.5336.7334.44
Net Profit / Share (Rs.)33.414.7417.2426.5117.17
NP After MI And SOA / Share (Rs.)42.447.9016.8229.4224.36
PBDIT Margin (%)10.408.2415.7216.1012.81
PBIT Margin (%)8.395.1411.8012.6510.47
PBT Margin (%)6.642.6410.2413.399.02
Net Profit Margin (%)5.041.276.919.674.49
NP After MI And SOA Margin (%)6.402.116.7410.736.38
Return on Networth / Equity (%)19.834.389.9018.8019.76
Return on Capital Employeed (%)18.496.9912.2616.3824.63
Return On Assets (%)9.371.344.789.978.00
Long Term Debt / Equity (X)0.280.400.230.130.15
Total Debt / Equity (X)0.330.700.360.220.24
Asset Turnover Ratio (%)1.280.790.740.800.65
Current Ratio (X)1.531.181.491.971.55
Quick Ratio (X)0.940.481.131.410.93
Inventory Turnover Ratio (X)2.662.643.932.042.08
Dividend Payout Ratio (NP) (%)11.7763.1229.731.6943.13
Dividend Payout Ratio (CP) (%)8.9625.5918.811.2831.55
Earning Retention Ratio (%)88.2336.8870.2798.3156.87
Cash Earning Retention Ratio (%)91.0474.4181.1998.7268.45
Interest Coverage Ratio (X)5.933.3110.0413.568.86
Interest Coverage Ratio (Post Tax) (X)3.871.515.427.654.38
Enterprise Value (Cr.)14454.647481.665788.794460.841908.49
EV / Net Operating Revenue (X)0.830.760.880.620.19
EV / EBITDA (X)8.019.305.663.871.50
MarketCap / Net Operating Revenue (X)0.770.530.670.500.16
Retention Ratios (%)88.2236.8770.2698.3056.86
Price / BV (X)2.411.120.980.880.50
Price / Net Operating Revenue (X)0.770.530.670.500.16
EarningsYield0.080.030.100.210.39

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Welspun Corp Ltd as of December 18, 2024 is: 861.55

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 December 18, 2024, Welspun Corp Ltd is Undervalued by 9.33% compared to the current share price 788.00

Intrinsic Value of Welspun Corp Ltd as of December 18, 2024 is: 940.26

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 December 18, 2024, Welspun Corp Ltd is Undervalued by 19.32% compared to the current share price 788.00

Last 5 Year EPS CAGR: 9.14%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (3,763.92 cr) compared to borrowings (2,411.46 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (8.77 cr) and profit (146.15 cr) over the years.
  1. The stock has a low average ROCE of 11.67%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 31.42, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 67.50, 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 Corp Ltd:
    1. Net Profit Margin: 5.04%
      • 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: 18.49% (Industry Average ROCE: 14.62%)
      • 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%: 19.83% (Industry Average ROE: 12.75%)
      • 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): 3.87
      • 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: 0.94
      • 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: 47.67)
      • 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: 0.33
      • 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 Corp Ltd. is a Public Limited Listed company incorporated on 26/04/1995 and has its registered office in the State of Gujarat, India. Company’s Corporate Identification Number(CIN) is L27100GJ1995PLC025609 and registration number is 025609. Currently Company is involved in the business activities of Manufacture of tubes, pipes and hollow profiles and of tube or pipe fittings of cast-iron/cast-steel. Company’s Total Operating Revenue is Rs. 5287.87 Cr. and Equity Capital is Rs. 130.48 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Steel - Tubes/PipesWelspun City, Kutch Dist. Gujarat 370110CompanySecretary_wcl@welspun.com
http://www.welspuncorp.com
Management
NamePosition Held
Mr. Balkrishan GoenkaChairman & Non-Exe.Director
Mr. Vipul MathurManaging Director & CEO
Mr. Rajesh R MandawewalaNon Exe.Non Ind.Director
Mr. Aneesh MisraNon Exe.Non Ind.Director
Ms. Amita MisraIndependent Director
Mr. Manish ChokhaniIndependent Director
Mr. Anjani AgrawalIndependent Director
Ms. Dipali ShethIndependent Director

FAQ

What is the latest intrinsic value of Welspun Corp Ltd?

The latest intrinsic value of Welspun Corp Ltd as on 18 December 2024 is ₹861.55, which is 9.33% higher than the current market price of ₹788.00. The stock has a market capitalization of 20,664 Cr. and recorded a high/low of ₹824/440 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹5,907 Cr and total liabilities of ₹12,682 Cr.

What is the Market Cap of Welspun Corp Ltd?

The Market Cap of Welspun Corp Ltd is 20,664 Cr..

What is the current Stock Price of Welspun Corp Ltd as on 18 December 2024?

The current stock price of Welspun Corp Ltd as on 18 December 2024 is 788.

What is the High / Low of Welspun Corp Ltd stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of Welspun Corp Ltd stocks is 824/440.

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

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

What is the Book Value of Welspun Corp Ltd?

The Book Value of Welspun Corp Ltd is 230.

What is the Dividend Yield of Welspun Corp Ltd?

The Dividend Yield of Welspun Corp Ltd is 0.63 %.

What is the ROCE of Welspun Corp Ltd?

The ROCE of Welspun Corp Ltd is 20.2 %.

What is the ROE of Welspun Corp Ltd?

The ROE of Welspun Corp Ltd is 19.8 %.

What is the Face Value of Welspun Corp Ltd?

The Face Value of Welspun Corp Ltd is 5.00.

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 Corp 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