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Last Updated on: 20 April, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 532144 | NSE: WELCORP

Fundamental Analysis of Welspun Corp Ltd

Basic Stock Data

Last Updated: April 19, 2024, 1:16 pm

Market Cap 13,825 Cr.
Current Price 529
High / Low625/211
Stock P/E12.8
Book Value 193
Dividend Yield0.95 %
ROCE6.42 %
ROE3.21 %
Face Value 5.00

Data Source: screener.in

Competitors of Welspun Corp Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Ratnamani Metals & Tubes Ltd 20,358 Cr. 2,9093,939/2,12132.7 4020.41 %27.3 %21.0 % 2.00
Man Industries (India) Ltd 2,436 Cr. 376459/89.922.8 1950.53 %10.4 %6.10 % 5.00
Rama Steel Tubes Ltd 1,810 Cr. 12.216.8/9.9754.1 2.080.00 %15.8 %15.2 % 1.00
Prakash Steelage Ltd 149 Cr. 8.3516.6/3.756.49 1.620.00 %%% 1.00
Jindal Saw Ltd 15,337 Cr. 480558/15510.9 2820.63 %11.0 %6.09 % 2.00
Industry Average8,018.00 Cr757.1125.40176.540.31%12.90%9.68%2.20

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales1,3932,0361,2991,5421,4422,0111,3221,9642,4024,0704,0694,0594,750
Expenses1,2071,8041,1341,4271,3471,9401,2932,0952,2363,6503,7123,6604,287
Operating Profit186231165115957129-131166421357400463
OPM %13%11%13%7%7%4%2%-7%7%10%9%10%10%
Other Income1532374054584157619138915022762
Interest13131723273031477095927562
Depreciation54625563646361708091868690
Profit before tax272393133836139313-5853325228466373
Tax %24%5%27%33%37%33%107%-9%56%26%26%17%21%
Net Profit206373975539264-1-6323240168387294
EPS in Rs7.6311.743.742.401.759.050.16-2.160.899.026.3214.7011.15

Last Updated: April 10, 2024, 5:21 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: April 5, 2024, 8:44 am

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales8,9779,0837,7058,4507,2365,8996,3478,9539,9577,1536,5059,75816,949
Expenses8,1188,3847,0357,5956,4495,3805,8748,3108,7946,3696,0329,26415,309
Operating Profit8586996708557875194736441,1637844734941,640
OPM %10%8%9%10%11%9%7%7%12%11%7%5%10%
Other Income266-261749699139128-106281629544386429
Interest40035829628324123617017714485102243325
Depreciation352353406436386386258260233246255303352
Profit before tax373-39141231258361731011,0671,0826613341,392
Tax %40%-126%31%8%31%72%12%122%39%24%33%40%
Net Profit224-929821417910153-226548274441991,089
EPS in Rs10.47-2.672.792.625.721.005.97-0.5024.3629.4216.827.9041.19
Dividend Payout %5%-19%18%19%9%50%8%-100%43%17%30%63%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-141.07%206.52%118.37%-16.36%-94.41%1430.00%-114.38%3072.73%26.45%-46.31%-55.18%
Change in YoY Net Profit Growth (%)0.00%347.59%-88.15%-134.72%-78.06%1524.41%-1544.38%3187.11%-3046.27%-72.76%-8.87%

Growth

Compounded Sales Growth
10 Years:1%
5 Years:9%
3 Years:-1%
TTM:120%
Compounded Profit Growth
10 Years:11%
5 Years:0%
3 Years:-39%
TTM:434%
Stock Price CAGR
10 Years:22%
5 Years:33%
3 Years:58%
1 Year:155%
Return on Equity
10 Years:7%
5 Years:10%
3 Years:10%
Last Year:3%

Last Updated: April 16, 2024, 12:58 am

Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital114131131132133133133133130130130131131
Reserves3,9795,5262,7182,6672,6662,6772,7212,6653,0853,9524,2984,5824,919
Preference Capital0000000005140236
Borrowings5,3415,5773,8243,0212,6441,8431,3861,3051,0619701,6553,3451,989
Other Liabilities6,3645,6482,1573,9983,1953,5953,4524,0973,6672,6393,0867,2155,135
Total Liabilities15,79816,8838,8309,8188,6378,2477,6938,2007,9437,6929,16915,27412,174
Fixed Assets6,7248,0214,9234,6623,7303,3563,0461,5671,6172,5992,4334,9104,839
CWIP6275461158034321747831471,26187104
Investments1,9791,8671,1408051,0177254884767841,7132,3071,5371,288
Other Assets6,4686,4482,6534,2713,8554,1344,1436,1105,4603,2333,1688,7405,943
Total Assets15,79816,8838,8309,8188,6378,2477,6938,2007,9437,6929,16915,27412,174

Reserves and Borrowings Chart

Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 1,429103227901354403981623648774218-185
Cash from Investing Activity -2,117-164-229338-326618184-255-49-848-201-348
Cash from Financing Activity 963-265-527-1,106-99-979-761-335-743-198453909
Net Cash Flow275-327-528133-714240533-144-271470376

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow858.00699.00670.00855.00787.00519.00473.00644.001.00733.0071.00458.00

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 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days627130497191764846344643
Inventory Days159156941381071591251291279378286
Days Payable2111844815413219817792815575130
Cash Conversion Cycle1042773345522486927248199
Working Capital Days-3143027344723565055-1326
ROCE %9%5%5%8%8%5%7%12%30%19%13%6%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters50.02%50.01%50.01%50.01%50.01%50.01%49.90%49.90%49.99%49.99%49.96%49.96%
FIIs12.71%11.71%9.06%6.12%7.34%8.95%9.03%7.96%7.27%7.78%9.42%10.56%
DIIs8.77%8.02%7.41%6.72%9.30%10.57%11.19%11.04%11.43%10.96%11.53%11.23%
Government0.00%0.00%0.00%0.00%0.00%0.00%0.01%0.01%0.01%0.01%0.02%0.00%
Public28.49%30.26%33.52%37.15%33.35%30.47%29.87%31.10%31.29%31.28%29.05%28.22%
Others0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.03%0.03%
No. of Shareholders78,3551,00,8281,14,3471,01,53392,53292,82696,69087,64385,79483,31582,05899,284

Shareholding Pattern Chart

No. of Shareholders

Welspun Corp Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
DSP Small Cap Fund51670792.19303.51
360 ONE Focused Equity Fund17065821.6100.24
Motilal Oswal ELSS Tax Saver Fund14328542.7884.17
Motilal Oswal Large and Midcap Fund12795672.2875.16
DSP Tiger Fund10073301.8759.17
ITI Small Cap Fund4894091.3828.75
ITI ELSS Tax Saver Fund1398003.088.21
Nippon India Nifty Smallcap 250 Index Fund930180.525.46
Motilal Oswal Nifty Smallcap 250 Index Fund568720.513.34
SBI Nifty Smallcap 250 Index Fund472450.52.78

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue5.005.005.005.005.00
Basic EPS (Rs.)7.9116.8229.4224.12-0.50
Diluted EPS (Rs.)7.8916.7729.3424.06-0.50
Cash EPS (Rs.)16.3227.0035.9626.1212.31
Book Value[Excl.RevalReserv]/Share (Rs.)184.49173.50161.33123.78105.29
Book Value[Incl.RevalReserv]/Share (Rs.)184.49173.50161.33123.78105.29
Revenue From Operations / Share (Rs.)373.10249.29274.16381.65337.58
PBDIT / Share (Rs.)30.7639.2044.1548.9026.68
PBIT / Share (Rs.)19.1829.4434.7139.9616.89
PBT / Share (Rs.)9.8825.5336.7334.4410.20
Net Profit / Share (Rs.)4.7417.2426.5117.172.52
NP After MI And SOA / Share (Rs.)7.9016.8229.4224.36-0.49
PBDIT Margin (%)8.2415.7216.1012.817.90
PBIT Margin (%)5.1411.8012.6510.475.00
PBT Margin (%)2.6410.2413.399.023.02
Net Profit Margin (%)1.276.919.674.490.74
NP After MI And SOA Margin (%)2.116.7410.736.38-0.14
Return on Networth / Equity (%)4.389.9018.8019.76-0.47
Return on Capital Employeed (%)6.9912.2616.3824.6310.53
Return On Assets (%)1.344.789.978.00-0.16
Long Term Debt / Equity (X)0.400.230.130.150.38
Total Debt / Equity (X)0.700.360.220.240.44
Asset Turnover Ratio (%)0.860.740.800.650.68
Current Ratio (X)1.181.491.971.551.56
Quick Ratio (X)0.481.131.410.930.99
Inventory Turnover Ratio (X)4.283.932.042.083.31
Dividend Payout Ratio (NP) (%)63.1229.731.6943.13-120.58
Dividend Payout Ratio (CP) (%)25.5918.811.2831.556.48
Earning Retention Ratio (%)36.8870.2798.3156.87220.58
Cash Earning Retention Ratio (%)74.4181.1998.7268.4593.52
Interest Coverage Ratio (X)3.3110.0413.568.863.99
Interest Coverage Ratio (Post Tax) (X)1.515.427.654.381.84
Enterprise Value (Cr.)7481.665788.794460.841908.494175.06
EV / Net Operating Revenue (X)0.760.880.620.190.46
EV / EBITDA (X)9.305.663.871.505.90
MarketCap / Net Operating Revenue (X)0.530.670.500.160.40
Retention Ratios (%)36.8770.2698.3056.86220.58
Price / BV (X)1.120.980.880.501.29
Price / Net Operating Revenue (X)0.530.670.500.160.40
EarningsYield0.030.100.210.390.00

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 80.05

The stock is overvalued by 84.87% compared to the current price ₹529

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.

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of 28.83, which is a positive sign.
  2. The company has higher reserves (3,573.46 cr) compared to borrowings (37.62 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (8.08 cr) and profit (174.77 cr) over the years.
  1. The stock has a low average ROCE of 10.58%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 65.00, 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: 1.27%
      • 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: 6.99% (Industry Average ROCE: 12.9%)
      • 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%: 4.38% (Industry Average ROE: 9.68%)
      • 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): 1.51
      • 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: 0.48
      • 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: 12.8 (Industry average Stock P/E: 25.4)
      • 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: 0.70
      • 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

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, Village Versamedi, 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
Ms. Dipali GoenkaNon Exe.Non Ind.Director
Mr. Aneesh MisraNon Exe.Non Ind.Director
Mr. Arun TodarwalLead Independent Director
Mrs. Revathy AshokIndependent Director
Ms. Amita MisraIndependent Director
Mr. Manish ChokhaniIndependent Director
Mr. Anjani AgrawalIndependent Director
Mr. Dipali ShethIndependent Director

Welspun Corp Ltd. Share Price Update

Share PriceValue
Today₹529.15
Previous Day₹539.10

FAQ

What is the latest fair value of Welspun Corp Ltd?

The latest fair value of Welspun Corp Ltd is 80.05.

What is the Market Cap of Welspun Corp Ltd?

The Market Cap of Welspun Corp Ltd is 13,825 Cr..

What is the current Stock Price of Welspun Corp Ltd as on 20 April 2024?

The current stock price of Welspun Corp Ltd as on 20 April 2024 is 529.

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

In FY 2024, the High / Low of Welspun Corp Ltd stocks is ₹625/211.

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

The Stock P/E of Welspun Corp Ltd is 12.8.

What is the Book Value of Welspun Corp Ltd?

The Book Value of Welspun Corp Ltd is 193.

What is the Dividend Yield of Welspun Corp Ltd?

The Dividend Yield of Welspun Corp Ltd is 0.95 %.

What is the ROCE of Welspun Corp Ltd?

The ROCE of Welspun Corp Ltd is 6.42 %.

What is the ROE of Welspun Corp Ltd?

The ROE of Welspun Corp Ltd is 3.21 %.

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