BSE:514162

Stock Analysis Report

Executive Summary

Welspun India Limited manufactures and sells home textile products in India and internationally.

Rewards

Trading at 24.4% below its fair value

Earnings are forecast to grow 13.58% per year

Risk Analysis

Has a high level of debt

Unstable dividend track record

Large one-off items impacting financial results



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

514162IndustryMarket
7 Day3.9%-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 Year34.5%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

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1 year ago | Simply Wall St

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Valuation

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

company0.7%marketbottom25%0.6%markettop25%2.6%industryaverage0.6%forecastin3Years2.9%

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

NamePositionTenureCompensationOwnership
Dipali Goenka
CEO, Joint MD & Executive Director17.8yrs₹34.73m0.075% 33.4m
Rajesh Ramesh Mandawewala
MD & Executive Director8.8yrs₹32.29m0.00010% 44.7k
Altaf Jiwani
Chief Financial Officer5yrsno datano data
Shashikant Thorat
Compliance Officer & Company Secretary10.5yrsno datano data
Ashok Joshi
Head of Business Operations & Executive Director 6.6yrsno datano data
Chintan Thaker
Senior Vice President of Corporate Affairs & Strategic Planning Cell0yrsno datano data
Laxmi Kaushik
Director & Business Head of Operations0yrsno datano data
Shreeram Phanse
Head of Internal Audit0yrsno datano data
Robert Walker
Chief Executive Officer of UK0yrsno datano data
Mukesh Savalani
Chief Executive Officer of Welspun Floorings Ltd2.8yrsno datano 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

NamePositionTenureCompensationOwnership
Dipali Goenka
CEO, Joint MD & Executive Director17.8yrs₹34.73m0.075% 33.4m
Rajesh Ramesh Mandawewala
MD & Executive Director8.8yrs₹32.29m0.00010% 44.7k
Balkrishan Gopiram Goenka
Chairman of the Board8.8yrs₹15.23m0.068% 30.4m
Arun Todarwal
Non Executive & Independent Director7.2yrs₹1.17m0.00025% 111.7k
Pradeep Poddar
Independent Director3.4yrs₹1.00mno data
Anisha Motwani
Independent Director1.3yrs₹140.00kno data
Arvind Singhal
Independent Non-Executive Director6.1yrs₹290.00kno data
Shalil Awale
Nominee Director1.4yrs₹190.00kno 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
514162BSE (Mumbai Stock Exchange)YesEquity SharesININRJan 1996
WELSPUNINDNSEI (National Stock Exchange of India)YesEquity SharesININRJan 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 12:40
End of Day Share Price2020/02/19 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


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.