Welspun Corp Limited

NSEI:WELCORP Stock Report

Market Cap: ₹147.6b

Welspun Valuation

Is WELCORP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of WELCORP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: WELCORP (₹564.35) is trading above our estimate of fair value (₹223.53)

Significantly Below Fair Value: WELCORP is trading above our estimate of fair value.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for WELCORP?

Other financial metrics that can be useful for relative valuation.

WELCORP key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.9x
Enterprise Value/EBITDA8.8x
PEG Ratio1.8x

Price to Earnings Ratio vs Peers

How does WELCORP's PE Ratio compare to its peers?

The above table shows the PE ratio for WELCORP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18.8x
RKFORGE Ramkrishna Forgings
43x23.6%₹135.7b
500265 Maharashtra Seamless
11.7x3.7%₹121.4b
JSLHISAR Jindal Stainless (Hisar)
8.9x-15.4%₹132.3b
500378 Jindal Saw
11.6x-1.0%₹176.3b
WELCORP Welspun
13.7x7.5%₹147.6b

Price-To-Earnings vs Peers: WELCORP is good value based on its Price-To-Earnings Ratio (13.7x) compared to the peer average (22.1x).


Price to Earnings Ratio vs Industry

How does WELCORP's PE Ratio compare vs other companies in the IN Metals and Mining Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a35.1%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a35.1%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: WELCORP is good value based on its Price-To-Earnings Ratio (13.7x) compared to the Indian Metals and Mining industry average (24.9x).


Price to Earnings Ratio vs Fair Ratio

What is WELCORP's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

WELCORP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.7x
Fair PE Ratio23.8x

Price-To-Earnings vs Fair Ratio: WELCORP is good value based on its Price-To-Earnings Ratio (13.7x) compared to the estimated Fair Price-To-Earnings Ratio (23.8x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst WELCORP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current₹564.35
₹640.25
+13.4%
16.3%₹755.00₹471.00n/a4
Apr ’25₹551.75
₹640.25
+16.0%
16.3%₹755.00₹471.00n/a4
Mar ’25₹533.80
₹640.25
+19.9%
16.3%₹755.00₹471.00n/a4
Feb ’25₹588.80
₹512.00
-13.0%
20.2%₹601.00₹328.00n/a5
Jan ’25₹570.80
₹512.00
-10.3%
20.2%₹601.00₹328.00n/a5
Dec ’24₹532.10
₹512.00
-3.8%
20.2%₹601.00₹328.00n/a5
Nov ’24₹434.60
₹430.20
-1.0%
17.5%₹550.00₹328.00n/a5
Oct ’24₹393.55
₹420.00
+6.7%
19.3%₹550.00₹328.00n/a4
Sep ’24₹338.60
₹376.67
+11.2%
9.3%₹410.00₹328.00n/a3
Aug ’24₹326.00
₹319.33
-2.0%
4.3%₹330.00₹300.00n/a3
Jul ’24₹260.95
₹315.00
+20.7%
4.8%₹330.00₹300.00n/a2
Jun ’24₹260.05
₹315.00
+21.1%
4.8%₹330.00₹300.00n/a2
May ’24₹225.15
₹287.50
+27.7%
4.3%₹300.00₹275.00₹564.352
Apr ’24₹200.50
₹287.50
+43.4%
4.3%₹300.00₹275.00₹551.752
Mar ’24₹193.00
₹287.50
+49.0%
4.3%₹300.00₹275.00₹533.802
Feb ’24₹205.15
₹287.50
+40.1%
4.3%₹300.00₹275.00₹588.802
Jan ’24₹236.95
₹287.50
+21.3%
4.3%₹300.00₹275.00₹570.802
Dec ’23₹244.85
₹287.50
+17.4%
4.3%₹300.00₹275.00₹532.102
Nov ’23₹219.40
₹276.50
+26.0%
3.1%₹285.00₹268.00₹434.602
Oct ’23₹265.10
₹276.50
+4.3%
3.1%₹285.00₹268.00₹393.552
Sep ’23₹227.85
₹276.50
+21.4%
3.1%₹285.00₹268.00₹338.602

Analyst Forecast: Target price is less than 20% higher than the current share price.


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