Review

WELSPUN INDIA LTD.

Ticker : 514162
FV: Rs 1
52-Week H/L: Rs 170.75/65.5

We recommended Welspun India Limited in volume no. 37, issue no. 49 (dated September 27, 2021) when the scrip was trading at Rs 157.50. Analysing the consolidated quarterly results, the company recorded an increase of 26.04 per cent in the net sales & operating income, which stood at Rs 2,487.63 crore for Q2FY22 as compared to Rs 1,973.66 crore reported for Q2FY21. The operating profit was recorded at Rs 423.74 crore in Q2FY22 as compared to Rs 404.79 crore posted in Q2FY21, a rise of 4.68 per cent. The company reported a net profit of Rs 201.60 crore in Q2FY22 versus Rs 187.90 crore recorded in Q2FY21, an improvement of 7.29 per cent. Despite Omicron spook, the demand for home textile products has remained sturdy in US and European markets. Welspun India has a strong order book for H2FY22, which is likely to underpin the company’s strong double-digit revenue growth. Hence, we recommend HOLD.