Time period given by analyst is one year when Welspun India Ltd. price can reach defined target.
Welspun India Ltd., incorporated in the year 1985, is a Mid Cap company (having a market cap of Rs 12579.16 Crore) operating in Textiles sector.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 2173.56 Crore, up 6.04 % from last quarter Total Income of Rs 2049.71 Crore and up 30.59 % from last year same quarter Total Income of Rs 1664.46 Crore. Company reported net profit after tax of Rs 134.28 Crore in latest quarter.
Investment Rationale
WLSI’s guidance of 17-18% margin should see an upgrade as this guidance was based on RoDTEP rate of ~2.0%, which was ~6% of revenue under RoSCTL. Factoring the higher rate for FY22/23, the brokerage revises up EBITDA 7%/9% and comparable EBITDA margin (including other income) for FY22 stands at 21%. It also increases target multiple to 10x (9x earlier) H1FY23E EBITDA given the improved competitiveness and buoyancy in growth accelerating further for the sector. It maintains ‘BUY/SO’ with revised TP of INR150 (INR121 earlier).
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