Welspun Corp Ltd. (WELCORP) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

APL Apollo Tubes

Usha Martin

Jayaswal Neco

Welspun Corp

Ratnamani Metals

Gallantt Ispat L

Godawari Power

Mah. Seamless

Shyam Metalics

Jindal Saw

Technocraf.Inds.

Why is Welspun Corp Ltd. ?

High Management Efficiency with a high ROE of 15.24%

Healthy long term growth as Operating profit has grown by an annual rate 24.30%

With ROE of 21.6, it has a Fair valuation with a 4.2 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 66.56%, its profits have risen by 4.4% ; the PEG ratio of the company is 5.9

High Institutional Holdings at 32.72%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 0.73% over the previous quarter.

Consistent Returns over the last 3 years

Along with generating 66.56% returns in the last 1 year, the stock has outperformed BSE500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Welspun Corp should be less than 10%
Overall Portfolio exposure to Iron & Steel Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Iron & Steel Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Welspun Corp for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Welspun Corp

66.56%

1.85

36.06%

Sensex

-8.84%

-0.67

13.10%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

17.29%

EBIT Growth (5y)

24.30%

EBIT to Interest (avg)

3.88

Debt to EBITDA (avg)

5.69

Net Debt to Equity (avg)

0.02

Sales to Capital Employed (avg)

1.51

Tax Ratio

22.00%

Dividend Payout Ratio

11.78%

Pledged Shares

Institutional Holding

32.72%

ROCE (avg)

13.51%

ROE (avg)

15.24%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.22

EV to EBIT

18.84

EV to EBITDA

15.85

EV to Capital Employed

4.15

EV to Sales

2.12

PEG Ratio

5.85

Dividend Yield

0.38%

ROCE (Latest)

19.91%

ROE (Latest)

21.64%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

12What is working for the Company

ROCE(HY)

Highest at 25.26%

OPERATING PROFIT TO INTEREST(Q)

Highest at 12.15 times

PBDIT(Q)

Highest at Rs 615.73 cr.

NET SALES(Q)

Highest at Rs 4,532.48 cr

-7What is not working for the Company

PBT LESS OI(Q)

At Rs 563.40 cr has Fallen at -20.22%

PAT(Q)

At Rs 452.59 cr has Fallen at -32.9%

Loading Valuation Snapshot...

Here's what is working for Welspun Corp

Operating Profit to Interest - Quarterly

Highest at 12.15 times

in the last five quarters

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit (PBDIT) - Quarterly

Highest at Rs 615.73 cr. and Grown

each quarter in the last five quarters

MOJO Watch

Near term Operating Profit trend is quite positive

Operating Profit (Rs Cr)

Net Sales - Quarterly

Highest at Rs 4,532.48 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Net Sales - Quarterly

At Rs 4,532.48 cr has Grown at 25.43%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Here's what is not working for Welspun Corp

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 563.40 cr has Fallen at -20.22%

Year on Year (YoY)

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 452.59 cr has Fallen at -32.9%

Year on Year (YoY)

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)