Welspun India Ltd up by 10.98 percent | Espresso


Espresso shot of the day – Welspun India Ltd up by 10.98 percent

May 07, 2021
Espresso shot of the day – Welspun India Ltd up by 10.98 percent

WELSPUN INDIA LTD 93.50 (+10.98%) BSE – INE192B01031 | 7TH MAY 2021

Welspun Group is one of India's fastest-growing global conglomerates with businesses in Line Pipes, Home Textile Products, Infrastructure, Warehousing, Steel, Oil & Gas, Advanced textiles and Flooring solutions. They started with Welspun Winilon Mills in the district of Palghar in 1985. They were a small texturizing unit in a small, sleepy town between Mumbai and Gujarat. Six years down the line, in 1991, Welspun Polyester India Limited went public with its IPO and subsequently became Welspun India Ltd. They started small but grew at an extraordinary pace. In 1993, the terry towel facility was set up in Vapi, Gujarat. Legend has it that no one could believe such high-end towels could be made outside of Turkey. In 2000, Welspun USA was incorporated as a wholly-owned subsidiary of Welspun Global Brands Ltd. With sales, design, and marketing based in NYC and a distribution centre in Ohio, Welspun focused on getting to know its US consumers better. Welspun USA was also established as a traditional distribution network in the state of Ohio, a city that rose from the ashes. In 2004, Welspun City, Anjar, Kutch was inaugurated. Spread over 2,500 acres, it houses Asia's largest home textile factory and one of the world's larger diameter SAW pipes mill. In 2001, a devastating earthquake had ravaged this entire region. Now, this region is a thriving township employing 20,000 people; like the phoenix, the city has risen from the ashes.

Recent Drivers

  • JSW Steel has acquired the high-grade steel plates and coils business of Welspun Corp on slump sale basis. Towards this acquisition, the company has paid Rs 225 crores to Welspun Corp as on 30 April 2021. 
  • Welspun Group recently launched its Women of Welspun (WoW)program, building on its core principles of gender diversity and equitable access to opportunities for all.
  • On 26th March 2021, India Ratings & Research, a Fitch Group firm, upgraded the long-term credit rating of Welspun India Ltd. from IND AA- to IND AA with a stable outlook. The upgrade reflects WIL’s better-than-Ind-Ra-expected balance sheet deleveraging through a strong operational performance including capacity utilisations, sales and operating margins post the unlocking of economic activities, as well as, improved working capital management.
  • On 25th March 2021, Welspun Enterprises agreed to take over a hybrid annuity mode project in Kerala from Calicut Expressway through the harmonious substitution process of the National Highways Authority of India.
  • On 15th March 2021, Welspun One Logistics Parks has raised more than Rs 300 crores from a set of investors for the first close of its Alternative Investment Fund (AIF), Welspun One Logistics Parks Fund I.
  • On 4th March 2021, Welspun India Ltd.'s board has approved raising up to $100 million (approximately Rs 750 crores) in one or more tranches including but not limited to loans, ESG Bonds, non-convertible debentures (NCDs), ECBs, etc. It could also be in form of domestic or overseas issuance.
  • Welspun India Ltd. reported quarterly net profit at Rs 180.77 crores in December 2020 up 146.99% from Rs 73.19 crores in December 2019.
  • Welspun India Ltd. reported net sales at Rs 2,029.01 crores in December 2020 up 21.83% from Rs 1,665.40 crores in December 2019.

(Sources: Moneycontrol, Livemint, Business Standard, The Hindu Business Line  )

Technical Force*

  • S&P BSE 500 month till date gain up by 1.58%
  • Traded on new 52 week High value  94.80
  • Spurt in Volume by more than 10.34 times compare to previous vol. 3 months avg volume- 1,99,347
  • Quantity traded- 13,50,042 Deliverable quantity- 4,98,006 (36.89%)
  • Stock price has jumped more than 290% from one year low level – 23.50 ,7 May 2020
  • Daily RSI (14) is in overbought territory today
  • 52 week high- 94.80 | 52 week low­­- 23.50

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Some Key Ratios (Source: BSE)

Market Cap: 9394.18 crores

PE: 20.88

OPM%: 20.01

ROE%: 14.93

Promoters holding: 70

Prev. Close: 84.25

*Chart And Technical Force data taken from the Binge desktop app.

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Chandresh Khona
by Chandresh Khona

Product Offerings Head

A teacher, writer, travel buff and now Espresso's Product Offerings Head. Ten years here has allowed me to lead the digital team at Sharekhan. My true passion lies in stock market charts.