Review

WELSPUN INDIA LTD.

Ticker : 514162 
FV : Rs 1 
52-Week H/L : Rs 170.75/62.00

We recommended Welspun India Ltd in volume no. 37, issue no. 49 (dated September 27, 2021) when the scrip was trading at Rs 157.50. The latest consolidated quarterly financials of the company state that Welspun recorded a 26.04 per cent increase in the net sales & operating income, which stood at Rs 2,487.63 crore for Q2FY22 as compared to the net sales and operating income of Rs 1,973.66 crore reported for Q2FY21. The quarter recorded an operating profit of Rs 423.74 crore in Q2FY22 as compared to the operating profit of Rs 404.79 crore posted in Q2FY21, a robust rise of 4.68 per cent. The company reported a net profit of Rs 201.60 crore in Q1FY22, which is 7.29 per cent higher as compared to Rs 187.90 crore recorded in Q2FY21. Welspun India's decision to invest around Rs 800 crore on capacity expansion for its home textiles and flooring businesses over the next two years has infused optimistic sentiments. Hence, we recommend HOLD.