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Last Updated on: 23 April, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 532553 | NSE: WELENT

Fundamental Analysis of Welspun Enterprises Ltd

Basic Stock Data

Last Updated: April 23, 2024, 11:33 am

Market Cap 4,835 Cr.
Current Price 349
High / Low383/138
Stock P/E13.8
Book Value 158
Dividend Yield0.29 %
ROCE9.99 %
ROE13.1 %
Face Value 10.0

Data Source:

Competitors of Welspun Enterprises Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
IRB Infrastructure Developers Ltd 39,767 Cr. 65.873.1/25.072.7 22.50.30 %8.67 %5.43 % 1.00
Nila Spaces Ltd 280 Cr. 7.108.05/2.4033.0 2.890.00 %4.98 %3.65 % 1.00
Ansal Buildwell Ltd 120 Cr. 162192/66.66.52 1520.00 %3.50 %2.55 % 10.0
Bronze Infra-Tech Ltd 1.81 Cr. 1.051.18/0.861.95 3.370.00 %14.8 %17.4 % 10.0
ITD Cementation India Ltd 6,135 Cr. 357375/10827.6 77.20.21 %18.8 %10.4 % 1.00
Industry Average9,260.76 Cr118.5928.3551.590.10%10.15%7.89%4.60

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Operating Profit4168312614743548689510583126
OPM %10%12%8%9%6%16%5%9%10%11%15%13%18%
Other Income42324125243349121381117514429
Profit before tax5163352613805813841617212694118
Tax %24%36%27%15%4%19%15%4%3%17%26%26%32%
Net Profit39412622136549133402142936980
EPS in Rs2.562.741.701.490.844.313.238.8126.729.436.634.485.17

Last Updated: April 10, 2024, 5:22 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: April 5, 2024, 6:52 am

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Operating Profit5510510-1-47-3277179191164147247408
OPM %16%25%4%-0%-25%-10%7%10%11%11%11%9%14%
Other Income2314-223883789593112142103668241
Profit before tax43-6811-415116207203180152783509
Tax %10%-105%10%94%116%67%40%39%25%28%17%7%
Net Profit36-6111569127151130126726384
EPS in Rs0.831.47-
Dividend Payout %-0%-0%-0%-0%-0%223%32%23%20%17%18%18%

Profit & Loss Yearly Chart

YoY Net Profit Growth

YoY Net Profit Growth (%)100.00%-1116.67%101.64%0.00%400.00%1280.00%84.06%18.90%-13.91%-3.08%476.19%
Change in YoY Net Profit Growth (%)0.00%-1216.67%1218.31%-101.64%400.00%880.00%-1195.94%-65.16%-32.80%10.83%479.27%


Compounded Sales Growth
10 Years:21%
5 Years:21%
3 Years:15%
Compounded Profit Growth
10 Years:48%
5 Years:28%
3 Years:23%
Stock Price CAGR
10 Years:38%
5 Years:22%
3 Years:46%
1 Year:135%
Return on Equity
10 Years:5%
5 Years:9%
3 Years:10%
Last Year:13%

Last Updated: April 15, 2024, 11:34 am

Balance Sheet

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital404040173174147148148148149150150136
Other Liabilities71115781551012124018447258611,5711,9812,047
Total Liabilities9791,0148612,1181,6161,6212,1992,8903,1164,7835,8885,1004,955
Fixed Assets64657953550116911027801071031,87170236
Other Assets3192442104472736459901,7561,9982,4733,1413,4663,812
Total Assets9791,0148612,1181,6161,6212,1992,8903,1164,7835,8885,1004,955

Reserves and Borrowings Chart

Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity -23218-11-10-17-24-287-116-589287345
Cash from Investing Activity 127-17888691161327-250-139-50-918-4871,197
Cash from Financing Activity -90-75-56-102-36-12226853106753125-204
Net Cash Flow14-3521580108181-270-202-2-156-751,338

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-338.00-273.00-315.00-448.00-141.00-182.00-383.00-413.00-621.00162.00145.00-517.00

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 Days1317770157223125738323743
Inventory Days4932242101681
Days Payable951792251278344547
Cash Conversion Cycle84-70-13154-3061257383237-423
Working Capital Days138-65134154-999372733-2161
ROCE %6%6%-0%-1%1%3%11%13%12%9%5%10%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
No. of Shareholders51,62559,41359,42857,12157,17956,50449,92147,47360,10751,96753,28458,035

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
Basic EPS (Rs.)48.198.378.6710.048.58
Diluted EPS (Rs.)48.088.338.609.918.53
Cash EPS (Rs.)49.349.4410.3112.9610.32
Book Value[Excl.RevalReserv]/Share (Rs.)157.49119.76113.24106.4098.17
Book Value[Incl.RevalReserv]/Share (Rs.)157.49119.76113.24106.4098.17
Revenue From Operations / Share (Rs.)183.9093.56102.75121.76120.65
PBDIT / Share (Rs.)26.0821.5421.0521.6518.02
PBIT / Share (Rs.)25.2020.4719.9820.1317.24
PBT / Share (Rs.)49.4911.1312.5614.9214.96
Net Profit / Share (Rs.)48.468.379.2311.449.54
NP After MI And SOA / Share (Rs.)48.198.328.6610.038.55
PBDIT Margin (%)14.1723.0120.4917.7814.93
PBIT Margin (%)13.7021.8819.4416.5314.28
PBT Margin (%)26.9011.8912.2212.2512.39
Net Profit Margin (%)26.358.948.989.397.90
NP After MI And SOA Margin (%)26.208.898.438.237.09
Return on Networth / Equity (%)30.676.967.659.428.71
Return on Capital Employeed (%)12.327.057.8714.2913.48
Return On Assets (%)
Long Term Debt / Equity (X)
Total Debt / Equity (X)0.311.401.270.470.38
Asset Turnover Ratio (%)0.500.310.440.630.72
Current Ratio (X)1.901.061.311.391.46
Quick Ratio (X)1.861.031.311.391.46
Inventory Turnover Ratio (X)5.802.412.1712.2324.06
Dividend Payout Ratio (NP) (%)18.6717.9123.0519.8917.46
Dividend Payout Ratio (CP) (%)18.3415.8820.5117.2716.01
Earning Retention Ratio (%)81.3382.0976.9580.1182.54
Cash Earning Retention Ratio (%)81.6684.1279.4982.7383.99
Interest Coverage Ratio (X)3.292.302.844.154.97
Interest Coverage Ratio (Post Tax) (X)2.701.902.243.203.26
Enterprise Value (Cr.)2102.483333.123553.631212.791984.86
EV / Net Operating Revenue (X)0.762.382.320.671.11
EV / EBITDA (X)5.3810.3311.343.777.44
MarketCap / Net Operating Revenue (X)0.680.771.060.330.88
Retention Ratios (%)81.3282.0876.9480.1082.53
Price / BV (X)0.790.610.960.381.08
Price / Net Operating Revenue (X)0.680.771.060.330.88

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 286.46

The stock is overvalued by 17.92% compared to the current price ₹349

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

  1. The stock has a low average Cash Conversion Cycle of -55.08, which is a positive sign.
  2. The company has higher reserves (1,263.85 cr) compared to borrowings (761.92 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (179.54 cr) and profit (162.38 cr) over the years.
  1. The stock has a low average ROCE of 6.25%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 34.83, which may not be favorable.

Stock Analysis

  • Based on the analysis 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: 26.35% (Higher values are generally favorable)
      • 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: 12.32% (Industry Average ROCE: 10.15%)
      • 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%: 30.67% (Industry Average ROE: 7.89%)
      • 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): 2.70 (Higher values, preferably > 2, are recommended)
      • 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: 1.86 (Higher values, preferably > 1, are recommended)
      • 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: 13.8 (Industry average Stock P/E: 28.35)
      • 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: 0.31 (Lower values, preferably < 1, are preferred)
      • 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.
    While these metrics suggest potential opportunity, it's essential to conduct thorough research or seek advice from financial experts before making any investment decisions.
    Stock Rating: ★★★★★

About the Company

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.
Construction, Contracting & EngineeringWelspun City, Village Versamedi, Kutch Dist. Gujarat
NamePosition Held
Mr. Balkrishan GoenkaChairman & Executive Director
Mr. Sandeep GargManaging Director
Mr. Mohan TandonIndependent Director
Dr. Aruna SharmaIndependent Director
Mr. Raghav ChandraIndependent Director
Dr. Anoop Kumar MittalIndependent Director
Mr. Rajesh MandawewalaNon Exe.Non Ind.Director
Ms. Dipali GoenkaNon Exe.Non Ind.Director
Mr. Sudhir MitalIndependent Director

Welspun Enterprises Ltd. Share Price Update

Share PriceValue
Previous Day₹347.15


What is the latest fair value of Welspun Enterprises Ltd?

The latest fair value of Welspun Enterprises Ltd is ₹286.46.

What is the Market Cap of Welspun Enterprises Ltd?

The Market Cap of Welspun Enterprises Ltd is 4,835 Cr..

What is the current Stock Price of Welspun Enterprises Ltd as on 23 April 2024?

The current stock price of Welspun Enterprises Ltd as on 23 April 2024 is 349.

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 ₹383/138.

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

The Stock P/E of Welspun Enterprises Ltd is 13.8.

What is the Book Value of Welspun Enterprises Ltd?

The Book Value of Welspun Enterprises Ltd is 158.

What is the Dividend Yield of Welspun Enterprises Ltd?

The Dividend Yield of Welspun Enterprises Ltd is 0.29 %.

What is the ROCE of Welspun Enterprises Ltd?

The ROCE of Welspun Enterprises Ltd is 9.99 %.

What is the ROE of Welspun Enterprises Ltd?

The ROE of Welspun Enterprises Ltd is 13.1 %.

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, 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 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