Welspun Enterprises Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 21, 2024, 1:36 am

Market Cap	7,972 Cr.
Current Price	576
High / Low	619/270
Stock P/E	23.6
Book Value	176
Dividend Yield	0.52 %
ROCE	18.4 %
ROE	12.6 %
Face Value	10.0
PEG Ratio	1.17

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

Stock P/E Current Price Intrinsic Value

View Share Price Target for

Competitors of

Stock Name	Market Cap	Current Price	High / Low	Stock P/E	Book Value	Dividend Yield	ROCE	ROE	Face Value
IITL Projects Ltd	26.4 Cr.	52.9	78.1/16.0	8.18	70.7	0.00 %	%	%	10.0
HB Estate Developers Ltd	198 Cr.	102	125/45.0	26.6	80.1	0.00 %	7.00 %	2.39 %	10.0
Hazoor Multi Projects Ltd	994 Cr.	49.9	63.9/28.4	11.8	19.5	0.60 %	%	%	1.00
Gyan Developers & Builders Ltd	9.11 Cr.	30.4	33.8/7.07		12.7	0.00 %	4.02 %	3.75 %	10.0
GG Dandekar Properties Ltd	57.2 Cr.	120	163/87.4		96.9	0.00 %	1.27 %	9.45 %	1.00
Industry Average	10,784.64	N/A		33.11	N/A	N/A	21.78	22.99	N/A

All Competitor Stocks of

Quarterly Result

Month	Jun 2021	Sep 2021	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024
Sales	372	291	224	476	690	530	692	845	699	646	707	821	907
Expenses	341	265	211	402	655	483	624	750	594	563	581	710	767
Operating Profit	31	26	14	74	35	48	68	95	105	83	126	111	140
OPM %	8%	9%	6%	16%	5%	9%	10%	11%	15%	13%	18%	14%	15%
Other Income	41	25	24	33	49	121	381	117	51	44	29	38	46
Interest	34	20	20	22	24	27	31	37	27	27	28	28	30
Depreciation	3	4	4	4	3	3	3	4	3	6	9	9	9
Profit before tax	35	26	13	80	58	138	416	172	126	94	118	112	148
Tax %	27%	15%	4%	19%	15%	4%	3%	17%	26%	26%	32%	31%	26%
Net Profit	26	22	13	65	49	133	402	142	93	69	80	78	110
EPS in Rs	1.70	1.49	0.84	4.31	3.23	8.81	26.72	9.43	6.63	4.48	5.17	5.04	7.08

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

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

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	TTM
Sales	421	243	826	189	305	1,067	1,787	1,808	1,530	1,342	2,758	2,872	3,081
Expenses	317	234	826	236	337	990	1,608	1,617	1,365	1,195	2,511	2,447	2,621
Operating Profit	105	10	-1	-47	-32	77	179	191	164	147	247	425	460
OPM %	25%	4%	-0%	-25%	-10%	7%	10%	11%	11%	11%	9%	15%	15%
Other Income	14	-2	238	83	78	95	93	112	142	103	668	162	157
Interest	47	40	138	13	10	33	54	77	110	83	119	110	113
Depreciation	68	35	88	27	21	24	11	23	16	16	13	28	33
Profit before tax	3	-68	11	-4	15	116	207	203	180	152	783	449	471
Tax %	-105%	-10%	94%	-116%	67%	40%	39%	25%	28%	17%	7%	29%
Net Profit	6	-61	1	1	5	69	127	151	130	126	726	319	336
EPS in Rs	1.47	-15.25	0.17	0.04	0.34	4.71	8.56	10.03	8.66	8.33	48.19	21.32	21.77
Dividend Payout %	0%	0%	0%	0%	223%	32%	23%	20%	17%	18%	0%	0%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year	2013-2014	2014-2015	2015-2016	2016-2017	2017-2018	2018-2019	2019-2020	2020-2021	2021-2022	2022-2023	2023-2024
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%

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:	35%
5 Years:	52%
3 Years:	84%
1 Year:	75%

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

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024	Sep 2024
Equity Capital	40	40	173	174	147	148	148	148	149	150	150	137	137
Reserves	481	419	1,342	1,247	1,111	1,191	1,306	1,431	1,536	1,641	2,206	2,187	2,301
Borrowings	378	325	447	94	150	460	592	812	2,237	2,526	764	762	1,217
Other Liabilities	115	78	155	101	212	401	844	725	861	1,571	1,981	1,843	1,783
Total Liabilities	1,014	861	2,118	1,616	1,621	2,199	2,890	3,116	4,783	5,888	5,100	4,929	5,437
Fixed Assets	579	535	501	169	110	27	80	107	103	1,871	70	289	320
CWIP	17	26	215	64	64	64	120	64	1,403	64	7	7	7
Investments	174	91	954	1,110	801	1,118	933	948	804	812	1,558	765	838
Other Assets	244	210	447	273	645	990	1,756	1,998	2,473	3,141	3,466	3,868	4,272
Total Assets	1,014	861	2,118	1,616	1,621	2,199	2,890	3,116	4,783	5,888	5,100	4,929	5,437

Reserves and Borrowings Chart

Cash Flow

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Cash from Operating Activity +	218	-11	-10	-17	-24	-287	-116	-58	9	287	345	-344
Cash from Investing Activity +	-178	88	691	161	327	-250	-139	-50	-918	-487	1,197	-45
Cash from Financing Activity +	-75	-56	-102	-36	-122	268	53	106	753	125	-204	-486
Net Cash Flow	-35	21	580	108	181	-270	-202	-2	-156	-75	1,338	-876

Free Cash Flow

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Free Cash Flow	-273.00	-315.00	-448.00	-141.00	-182.00	-383.00	-413.00	-621.00	162.00	145.00	-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

Month	Mar 2013	Mar 2014	Mar 2015	Mar 2016	Mar 2017	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023	Mar 2024
Debtor Days	77	70	15	72	23	12	57	38	32	37	43	54
Inventory Days	32	24	2	10	16						81	121
Days Payable	179	225	12	78	344						451	359
Cash Conversion Cycle	-70	-131	5	4	-306	12	57	38	32	37	-327	-183
Working Capital Days	-6	51	34	154	-99	9	37	27	33	-21	25	80
ROCE %	6%	-0%	-1%	1%	3%	11%	13%	12%	9%	5%	10%	18%

Financial Efficiency Indicators Chart

Share Holding Pattern

Month	Dec 2021	Mar 2022	Jun 2022	Sep 2022	Dec 2022	Mar 2023	Jun 2023	Sep 2023	Dec 2023	Mar 2024	Jun 2024	Sep 2024
Promoters	53.77%	53.49%	53.52%	53.76%	53.76%	53.76%	54.53%	54.51%	54.51%	54.51%	54.51%	54.51%
FIIs	2.29%	2.23%	2.21%	2.25%	2.51%	3.04%	3.73%	4.47%	4.57%	4.55%	4.69%	4.71%
DIIs	3.41%	3.18%	2.37%	2.05%	2.05%	2.05%	2.54%	2.25%	2.00%	1.93%	1.77%	1.75%
Public	40.52%	41.09%	41.91%	41.95%	41.69%	41.16%	39.20%	37.32%	37.48%	37.62%	37.63%	37.64%
Others	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	1.44%	1.44%	1.37%	1.37%	1.37%
No. of Shareholders	57,121	57,179	56,504	49,921	47,473	60,107	51,967	53,284	58,035	58,167	63,961	65,441

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

Month	Mar 24	Mar 23	Mar 22	Mar 21	Mar 20
FaceValue	10.00	10.00	10.00	10.00	10.00
Basic EPS (Rs.)	21.51	48.19	8.37	8.67	10.04
Diluted EPS (Rs.)	21.25	48.08	8.33	8.60	9.91
Cash EPS (Rs.)	25.46	49.34	9.44	10.31	12.96
Book Value[Excl.RevalReserv]/Share (Rs.)	182.42	157.49	119.76	113.24	106.40
Book Value[Incl.RevalReserv]/Share (Rs.)	182.42	157.49	119.76	113.24	106.40
Revenue From Operations / Share (Rs.)	210.41	183.90	93.56	102.75	121.76
PBDIT / Share (Rs.)	45.16	26.08	21.54	21.05	21.65
PBIT / Share (Rs.)	43.14	25.20	20.47	19.98	20.13
PBT / Share (Rs.)	35.10	49.49	11.13	12.56	14.92
Net Profit / Share (Rs.)	23.44	48.46	8.37	9.23	11.44
NP After MI And SOA / Share (Rs.)	21.62	48.19	8.32	8.66	10.03
PBDIT Margin (%)	21.46	14.17	23.01	20.49	17.78
PBIT Margin (%)	20.50	13.70	21.88	19.44	16.53
PBT Margin (%)	16.68	26.90	11.89	12.22	12.25
Net Profit Margin (%)	11.14	26.35	8.94	8.98	9.39
NP After MI And SOA Margin (%)	10.27	26.20	8.89	8.43	8.23
Return on Networth / Equity (%)	12.70	30.67	6.96	7.65	9.42
Return on Capital Employeed (%)	17.50	12.32	7.05	7.87	14.29
Return On Assets (%)	5.96	14.15	2.11	2.69	4.77
Long Term Debt / Equity (X)	0.24	0.12	1.29	1.21	0.30
Total Debt / Equity (X)	0.32	0.31	1.40	1.27	0.47
Asset Turnover Ratio (%)	0.57	0.50	0.31	0.44	0.63
Current Ratio (X)	2.03	1.90	1.06	1.31	1.39
Quick Ratio (X)	1.93	1.86	1.03	1.31	1.39
Inventory Turnover Ratio (X)	3.87	5.80	2.41	2.17	12.23
Dividend Payout Ratio (NP) (%)	4.62	18.67	17.91	23.05	19.89
Dividend Payout Ratio (CP) (%)	4.22	18.34	15.88	20.51	17.27
Earning Retention Ratio (%)	95.38	81.33	82.09	76.95	80.11
Cash Earning Retention Ratio (%)	95.78	81.66	84.12	79.49	82.73
Interest Coverage Ratio (X)	5.61	3.29	2.30	2.84	4.15
Interest Coverage Ratio (Post Tax) (X)	4.18	2.70	1.90	2.24	3.20
Enterprise Value (Cr.)	4598.04	2102.48	3333.12	3553.63	1212.79
EV / Net Operating Revenue (X)	1.60	0.76	2.38	2.32	0.67
EV / EBITDA (X)	7.46	5.38	10.33	11.34	3.77
MarketCap / Net Operating Revenue (X)	1.45	0.68	0.77	1.06	0.33
Retention Ratios (%)	95.37	81.32	82.08	76.94	80.10
Price / BV (X)	1.79	0.79	0.61	0.96	0.38
Price / Net Operating Revenue (X)	1.45	0.68	0.77	1.06	0.33
EarningsYield	0.07	0.38	0.11	0.07	0.24

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of as of December 21, 2024 is: 526.08

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 21, 2024, is Overvalued by 8.67% compared to the current share price 576.00

Intrinsic Value of as of December 21, 2024 is: 632.59

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 21, 2024, is Undervalued by 9.82% compared to the current share price 576.00

Last 5 Year EPS CAGR: 20.25%

*Investments are subject to market risks

Strength and Weakness

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

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 :
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: 21.78%)
  - 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: 22.99%)
  - 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: 23.6 (Industry average Stock P/E: 33.11)
  - 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.

INDUSTRY	ADDRESS	CONTACT
Construction, Contracting & Engineering	Welspun City, Village Versamedi, Kutch Dist. Gujarat 370110	companysecretary_wel@welspun.com http://www.welspunenterprises.com

Management
Name	Position Held
Mr. Balkrishan Goenka	Chairman & Executive Director
Mr. Sandeep Garg	Managing Director
Mr. Rajesh Mandawewala	Non Exe.Non Ind.Director
Mr. S Madhavan	Lead Independent Director
Dr. Aruna Sharma	Independent Director
Mr. Raghav Chandra	Independent Director
Dr. Anoop Kumar Mittal	Independent Director

FAQ

What is the latest intrinsic value of ?

The latest intrinsic value of as on 21 December 2024 is ₹526.08, which is 8.67% lower than the current market price of ₹576.00. The stock has a market capitalization of 7,972 Cr. and recorded a high/low of 619/270 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹2,301 Cr and total liabilities of ₹5,437 Cr.

What is the Market Cap of ?

The Market Cap of is 7,972 Cr..

What is the current Stock Price of as on 21 December 2024?

The current stock price of as on 21 December 2024 is 576.

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

In FY 2024-2025, the High / Low of stocks is 619/270.

What is the Stock P/E of ?

The Stock P/E of is 23.6.

What is the Book Value of ?

The Book Value of is 176.

What is the Dividend Yield of ?

The Dividend Yield of is 0.52 %.

What is the ROCE of ?

The ROCE of is 18.4 %.

What is the ROE of ?

The ROE of is 12.6 %.

What is the Face Value of ?

The Face Value of is 10.0.