Fundamental Analysis

WELSPUN INDIA LTD.

Ticker : 514162
BUY : Rs157.50
Target : Rs 176

Welspun Group is one of India's fastest-growing global conglom-erates specialising in home textile products. The consolidated quarterly financials of the company revealed that it recorded an 84.26 per cent increase in net sales and operating income, which stood at Rs 2,214.49 crore for Q1FY22 as compared to the net sales & operating income of Rs 1,201.80 crore reported for Q1FY21. The quarter recorded an operating profit of Rs 459.82 crore in Q1FY22 as compared to the operating profit of Rs 238.12 crore posted in Q1FY21, a robust rise of 93.1 per cent. The com-pany reported a net profit of Rs 222.90 crore in Q1FY22, signifi-cantly higher as compared to Rs 53.75crore recorded in Q1FY21. Welspun India plans to invest Rs 656.5 crore for the expansion during FY22 and FY23, predicting a revenue potential of Rs 1,207 crore from the second year of operation. Hence, owing to its bright expansion plans we recommend BUY.