Welspun Living Receives 'Hold' Rating from MarketsMOJO, Shows Improvement in Technical Trend

Welspun Living, a midcap textile company, has recently received a 'Hold' rating from MarketsMOJO. The stock is currently in a Mildly Bullish range and has shown an improvement in its technical trend from Sideways on 25-Nov-24. One of the key technical factors, RSI, has also been Bullish since 25 Nov 2024.
The company has an attractive valuation with a ROCE of 15.2 and a 2.5 Enterprise value to Capital Employed. It is currently trading at a discount compared to its average historical valuations. Despite generating a return of -6.34% in the past year, the company's profits have risen by 34.8%, resulting in a PEG ratio of 0.6.

However, Welspun Living has shown poor long-term growth with an annual rate of -12.90% in Operating profit over the last 5 years. In addition, the company's results in Sep 24 were negative, with the lowest OPERATING CF(Y) at Rs 532.84 Cr and DEBTORS TURNOVER RATIO(HY) at 6.92 times. The OPERATING PROFIT TO INTEREST (Q) was also at its lowest at 6.52 times.

Moreover, there has been a decrease in promoter confidence as they have reduced their stake in the company by -4.26% over the previous quarter and currently hold 66.24% of the company. This could indicate a lack of confidence in the future of the business.

In terms of performance, Welspun Living has underperformed BSE 500 in the last 3 years, 1 year, and 3 months, along with generating -6.34% returns in the last 1 year. Based on these factors, MarketsMOJO has upgraded the stock to a 'Hold' rating.