Welspun India
Market Cap
₹44.7b
Last Updated
2020/02/19 12:40 UTC
Data Sources
Company Financials +
Executive Summary
Welspun India Limited manufactures and sells home textile products in India and internationally.
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet average dividend payer.
Similar Companies
Share Price & News
How has Welspun India's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 514162 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
3.9%
514162
-0.5%
IN Luxury
-1.5%
IN Market
1 Year Return
-5.3%
514162
18.2%
IN Luxury
10.7%
IN Market
Return vs Industry: 514162 underperformed the Indian Luxury industry which returned 18.2% over the past year.
Return vs Market: 514162 underperformed the Indian Market which returned 10.7% over the past year.
Shareholder returns
| 514162 | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.9% | -0.5% | -1.5% |
| 30 Day | -9.2% | 3.0% | -2.7% |
| 90 Day | -15.7% | 9.2% | 1.3% |
| 1 Year | -4.8%-5.3% | 19.0%18.2% | 12.7%10.7% |
| 3 Year | -48.0%-49.2% | 52.2%48.8% | 22.0%15.1% |
| 5 Year | 34.5%28.2% | 106.9%100.1% | 34.5%22.0% |
Price Volatility Vs. Market
How volatile is Welspun India's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 year ago | Simply Wall St
April Best Undervalued Stocks1 year ago | Simply Wall St
April Best Undervalued Stocks1 year ago | Simply Wall St
April Best Undervalued StocksValuation
Is Welspun India undervalued compared to its fair value and its price relative to the market?
24.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 514162 (₹45.5) is trading below our estimate of fair value (₹60.2)
Significantly Below Fair Value: 514162 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 514162 is poor value based on its PE Ratio (13.4x) compared to the Luxury industry average (11.2x).
PE vs Market: 514162 is poor value based on its PE Ratio (13.4x) compared to the Indian market (13.1x).
Price to Earnings Growth Ratio
PEG Ratio: 514162 is good value based on its PEG Ratio (1x)
Price to Book Ratio
PB vs Industry: 514162 is overvalued based on its PB Ratio (1.5x) compared to the IN Luxury industry average (0.5x).
Next Steps
Future Growth
How is Welspun India forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
13.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 514162's forecast earnings growth (13.6% per year) is above the savings rate (6.5%).
Earnings vs Market: 514162's earnings (13.6% per year) are forecast to grow slower than the Indian market (20.6% per year).
High Growth Earnings: 514162's earnings are forecast to grow, but not significantly.
Revenue vs Market: 514162's revenue (8.3% per year) is forecast to grow slower than the Indian market (9% per year).
High Growth Revenue: 514162's revenue (8.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 514162's Return on Equity is forecast to be low in 3 years time (16.1%).
Next Steps
Past Performance
How has Welspun India performed over the past 5 years?
-15.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 514162 has a large one-off loss of ₹2.4B impacting its December 31 2019 financial results.
Growing Profit Margin: 514162's current net profit margins (5.1%) are lower than last year (5.8%).
Past Earnings Growth Analysis
Earnings Trend: 514162's earnings have declined by -15.8% per year over the past 5 years.
Accelerating Growth: 514162's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 514162 had negative earnings growth (-8.9%) over the past year, making it difficult to compare to the Luxury industry average (5.6%).
Return on Equity
High ROE: 514162's Return on Equity (11.4%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Welspun India's financial position?
Financial Position Analysis
Short Term Liabilities: 514162's short term assets (₹35.8B) exceed its short term liabilities (₹28.8B).
Long Term Liabilities: 514162's short term assets (₹35.8B) exceed its long term liabilities (₹19.4B).
Debt to Equity History and Analysis
Debt Level: 514162's debt to equity ratio (99.6%) is considered high.
Reducing Debt: 514162's debt to equity ratio has reduced from 194% to 99.6% over the past 5 years.
Debt Coverage: 514162's debt is well covered by operating cash flow (41.5%).
Interest Coverage: 514162's interest payments on its debt are well covered by EBIT (9.9x coverage).
Balance Sheet
Inventory Level: 514162 has a high level of physical assets or inventory.
Debt Coverage by Assets: 514162's debt is covered by short term assets (assets are 1.2x debt).
Next Steps
Dividend
What is Welspun India's current dividend yield, its reliability and sustainability?
0.66%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: 514162's dividend (0.66%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).
High Dividend: 514162's dividend (0.66%) is low compared to the top 25% of dividend payers in the Indian market (2.58%).
Stability and Growth of Payments
Stable Dividend: 514162's dividend payments have been volatile in the past 10 years.
Growing Dividend: 514162's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (8.8%), 514162's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 514162's dividends in 3 years are forecast to be well covered by earnings (23.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
7.7yrs
Average management tenure
CEO
Dipali Goenka (50yo)
17.8yrs
Tenure
₹34,730,000
Compensation
Ms. Dipali Goenka has been a Joint-Managing Director of Welspun India Ltd. since April 2002 and has been its Chief Executive Officer since April 2002. Ms. Goenka serves as Managing Director at Welspun Reta ...
CEO Compensation Analysis
Compensation vs Market: Dipali's total compensation ($USD485.33K) is about average for companies of similar size in the Indian market ($USD387.20K).
Compensation vs Earnings: Dipali's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, Joint MD & Executive Director | 17.8yrs | ₹34.73m | 0.075% ₹33.4m | |
| MD & Executive Director | 8.8yrs | ₹32.29m | 0.00010% ₹44.7k | |
| Chief Financial Officer | 5yrs | no data | no data | |
| Compliance Officer & Company Secretary | 10.5yrs | no data | no data | |
| Head of Business Operations & Executive Director | 6.6yrs | no data | no data | |
| Senior Vice President of Corporate Affairs & Strategic Planning Cell | 0yrs | no data | no data | |
| Director & Business Head of Operations | 0yrs | no data | no data | |
| Head of Internal Audit | 0yrs | no data | no data | |
| Chief Executive Officer of UK | 0yrs | no data | no data | |
| Chief Executive Officer of Welspun Floorings Ltd | 2.8yrs | no data | no data |
7.7yrs
Average Tenure
52yo
Average Age
Experienced Management: 514162's management team is seasoned and experienced (7.7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, Joint MD & Executive Director | 17.8yrs | ₹34.73m | 0.075% ₹33.4m | |
| MD & Executive Director | 8.8yrs | ₹32.29m | 0.00010% ₹44.7k | |
| Chairman of the Board | 8.8yrs | ₹15.23m | 0.068% ₹30.4m | |
| Non Executive & Independent Director | 7.2yrs | ₹1.17m | 0.00025% ₹111.7k | |
| Independent Director | 3.4yrs | ₹1.00m | no data | |
| Independent Director | 1.3yrs | ₹140.00k | no data | |
| Independent Non-Executive Director | 6.1yrs | ₹290.00k | no data | |
| Nominee Director | 1.4yrs | ₹190.00k | no data |
6.5yrs
Average Tenure
56yo
Average Age
Experienced Board: 514162's board of directors are considered experienced (6.5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Welspun India Limited's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Welspun India Limited
- Ticker: 514162
- Exchange: BSE
- Founded: 1985
- Industry: Textiles
- Sector: Consumer Durables
- Market Cap: ₹44.660b
- Shares outstanding: 1.00b
- Website: https://www.welspunindia.com
Location
- Welspun India Limited
- Welspun House
- 6th Floor
- Mumbai
- Maharashtra
- 400013
- India
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 514162 | BSE (Mumbai Stock Exchange) | Yes | Equity Shares | IN | INR | Jan 1996 |
| WELSPUNIND | NSEI (National Stock Exchange of India) | Yes | Equity Shares | IN | INR | Jan 1996 |
Biography
Welspun India Limited manufactures and sells home textile products in India and internationally. The company offers towels, including wash cloths, face towels, hand towels, bath towels, bath sheets, terry, and beach towels; bath rugs/mats, such as cotton, nylon, polyethylene terephthalate, and polyester filament-based Drylon and Resilon yarn rugs; area and bi-component fibre rugs; bathrobes; and bed sheets and carpets. It also provides utility bedding products comprising pillow fillers, mattress pads, and down-alternative filled comforters; and fashion bedding products for the bedroom. The company offers its products under the Christy, Kingsley Home, Crowning Touch, Spaces, Amy Butler, and Spun brands. In addition, it generates power. The company was formerly known as Welspun Winilon Silk Mills Pvt. Ltd. and changed its name to Welspun India Limited in 1995. The company was founded in 1985 and is based in Mumbai, India. Welspun India Limited is a subsidiary of Prasert Multiventure Private Limited.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/19 12:40 |
| End of Day Share Price | 2020/02/19 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/03/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.