Is Welspun Corp a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Welspun Corp Ltd is a average quality company .

Is Welspun Corp undervalued or overvalued?

The key valuation ratios of Welspun Corp Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone .

What is Welspun Corp share price return in the past 10 years?

Welspun Corp Ltd share price has appreciated 24.8% annually (CAGR) over the past ten years.

Is Welspun Corp a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Welspun Corp Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

Welspun Corp Ltd - Stock Valuation and Financial Performance

Name: Welspun Corp
Brand: Welspun Corp

BSE: 532144 | NSE: WELCORP | Steel & Iron Products | Small Cap

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Welspun Corp Share Price

₹690.55 2.45 0.36%
as on 21-Nov'24 16:59

10 Year X-Ray of Welspun Corp:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Standalone Basis ^P Consolidated Basis ^P

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Value Creation ⓘ

Value Creation Index Colour Code Guide ⓘ

	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24	TTM
ROCE % ⓘ	4.4%	0.6%	13.9%	12.1%	-2.2%	23.8%	49%	17.7%	11.2%	15.2%	-
Value Creation Index ⓘ	-0.7	-1.0	0.0	-0.1	-1.2	0.7	2.5	0.3	-0.2	0.1	-
Growth Parameters ⓘ Growth Parameters Colour Code Guide ⓘ
Sales ⓘ	4,949	3,772	4,346	4,020	4,136	4,253	5,285	5,288	7,731	9,082	9,306
Sales YoY Gr.	-	-23.8%	15.2%	-7.5%	2.9%	2.8%	24.3%	0.1%	46.2%	17.5%	-
Adj EPS ⓘ	0.9	-0.6	4.5	5.6	-0.8	13.8	35.9	18.8	9	16.1	16.5
YoY Gr.	-	-163.8%	NA	25.2%	-114.4%	NA	160.8%	-47.6%	-52.3%	79.8%	-
BVPS (₹) ⓘ	70.9	61.5	68.2	72.2	61.6	59.5	103.3	116.7	122.1	135.4	139.6
Adj Net Profit ⓘ	24.7	-16	118	148	-21.3	359	936	491	235	422	432
Cash Flow from Ops. ⓘ	256	336	266	792	253	16.2	378	193	-439	638	-
Debt/CF from Ops. ⓘ	8.4	5.6	5.6	0.9	3	48.8	1.4	6.8	-5.7	2	-

CAGR ⓘ

CAGR Colour Code Guide ⓘ

	9 Years	5 Years	3 Years	1 Years
Sales ⓘ	7%	17%	19.8%	17.5%
Adj EPS ⓘ	37.1%	NA	-23.4%	79.8%
BVPSⓘ	7.5%	17.1%	9.4%	10.9%
Share Price	24.8%	38.3%	64.6%	25.6%

Key Financial Parameters ⓘ

Performance Ratio Colour Code Guide ⓘ

	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24	TTM
Return on Equity % ⓘ	1.3	-0.9	6.9	7.9	-1.2	22.5	43.9	17.1	7.5	12.5	12
Op. Profit Mgn % ⓘ	7.7	8.6	11.9	9.4	5.2	9.8	11.6	5.8	5.9	5.3	6.9
Net Profit Mgn % ⓘ	0.5	-0.4	2.7	3.7	-0.5	8.4	17.7	9.3	3	4.7	4.7
Debt to Equity ⓘ	1.2	1.2	0.8	0.4	0.5	0.5	0.2	0.4	0.8	0.4	0.3
Working Cap Days ⓘ	181	271	215	258	175	161	165	165	141	147	80
Cash Conv. Cycle ⓘ	115	189	164	189	115	115	78	66	85	95	27

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 19.77%

Debt to equity has declined versus last 3 years average to 0.35

Return on Equity has declined versus last 3 years average to 12.00%

Net Profit has been subdued in last 3 years -23.39%

Sales growth is not so good in last 4 quarters at 9.71%

Latest Financials - Welspun Corp Ltd.

	Standalone	Consolidated
TTM EPS (₹)	16.5	41.8
TTM Sales (₹ Cr.)	9,306	15,650
BVPS (₹.) ⓘ	139.6	230.1
Reserves (₹ Cr.) ⓘ	3,532	5,907
P/BV ⓘ	4.93	2.99
PE ⓘ	41.75	16.48

From the Market
52 Week Low / High (₹)	441.00 / 805.80
All Time Low / High (₹)	1.00 / 805.80
Market Cap (₹ Cr.)	18,052
Equity (₹ Cr.)	131.2
Face Value (₹)	5
Industry PE ⓘ	21.8

Management X-Ray of Welspun Corp:

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged ^*

0.00

* Pledged shares as % of Promoter's holding (%)

Valuation of Welspun Corp

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Price to Earnings

Enterprise Value to EBIT

Price to Book-Value

Price to Sales

Dividend History

Analyst's Notes

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Key Ratios of Welspun Corp

Standalone Basis Consolidated Basis

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)

Standalone Basis Consolidated Basis

PARTICULARS	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24
Sales	4,949	3,772	4,346	4,020	4,136	4,253	5,285	5,288	7,731	9,082
Operating Expenses ⓘ	4,666	3,610	3,844	3,673	4,205	3,968	4,681	4,994	7,328	8,601
Manufacturing Costs	269	322	403	321	407	598	782	539	774	804
Material Costs	4,031	2,812	3,154	3,070	3,208	2,892	3,541	4,099	6,107	7,233
Employee Cost	171	193	185	167	190	199	197	209	218	254
Other Costs ⓘ	196	282	102	115	400	279	161	146	229	309
Operating Profit ⓘ	283	163	502	347	-68	285	604	294	403	481
Operating Profit Margin (%)	5.7%	4.3%	11.6%	8.6%	-1.7%	6.7%	11.4%	5.6%	5.2%	5.3%
Other Income ⓘ	147	108	213	128	126	402	874	493	300	484
Interest ⓘ	213	201	207	131	118	111	58	77	194	205
Depreciation ⓘ	243	248	244	116	113	123	110	115	138	165
Exceptional Items ⓘ	0	0	0	0	0	0	0	0	0	0
Profit Before Tax ⓘ	-25	-179	264	228	-174	452	1,310	595	371	596
Tax ⓘ	-10	-55	89	79	22	146	285	109	94	119
Profit After Tax	-16	-123	175	148	-196	306	1,025	486	277	476
PAT Margin (%)	-0.3%	-3.3%	4.0%	3.7%	-4.7%	7.2%	19.4%	9.2%	3.6%	5.2%
Adjusted EPS (₹)	-0.6	-4.6	6.6	5.6	-7.4	11.7	39.3	18.6	10.6	18.2
Dividend Payout Ratio (%)	-84%	-11%	8%	9%	-7%	89%	13%	27%	47%	27%

Balance Sheet

(All Figures are in Crores.)

Standalone Basis Consolidated Basis

PARTICULARS	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24
Equity and Liabilities
Shareholders Fund	1,866	1,630	1,810	1,916	1,633	1,551	2,695	3,044	3,194	3,544
Share Capital ⓘ	132	133	133	133	133	130	130	130	131	131
Reserves ⓘ	1,734	1,497	1,677	1,783	1,500	1,421	2,565	2,914	3,063	3,413
Minority Interest	0	0	0	0	0	0	0	0	0	0
Debt	2,066	1,778	1,386	606	712	761	504	1,275	1,585	1,151
Long Term Debt	1,878	1,591	1,173	605	537	511	434	790	1,200	1,131
Short Term Debt	188	187	214	1	175	250	70	485	385	20
Trade Payables	2,191	1,334	1,934	1,828	1,015	749	486	967	1,355	1,667
Others Liabilities ⓘ	1,564	1,176	1,207	1,246	1,041	1,876	1,634	1,264	2,309	1,473
Total Liabilities ⓘ	7,687	5,918	6,337	5,596	4,401	4,938	5,320	6,551	8,443	7,834
Fixed Assets
Gross Block	4,380	2,843	2,860	2,921	1,210	1,363	1,874	1,873	3,268	3,376
Accumulated Depreciation	1,572	247	490	724	442	554	795	881	998	1,135
Net Fixed Assetsⓘ	2,808	2,596	2,370	2,197	768	810	1,079	992	2,270	2,241
CWIP ⓘ	23	25	32	14	40	67	10	5	55	20
Investmentsⓘ	1,030	953	738	567	616	506	1,723	2,746	1,956	1,472
Inventories	827	792	1,327	1,020	301	1,387	552	790	1,915	1,373
Trade Receivables	1,741	982	1,323	1,103	723	675	606	801	921	1,651
Cash Equivalents	198	146	115	196	172	163	122	375	578	341
Others Assetsⓘ	1,061	422	432	499	1,782	1,329	1,227	841	749	736
Total Assets ⓘ	7,687	5,918	6,337	5,596	4,401	4,938	5,320	6,551	8,443	7,834

Cash Flow

(All Figures are in Crores.)

Standalone Basis Consolidated Basis

PARTICULARS	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24
Cash Flow From Operating Activity ⓘ	256	336	266	791	253	16	378	193	-439	638
PBT ⓘ	-25	-179	264	196	-393	397	1,300	595	371	596
Adjustment ⓘ	333	385	430	245	888	-64	-665	-262	-22	-96
Changes in Working Capital ⓘ	-47	131	-461	308	-238	-249	-108	-22	-714	210
Tax Paid ⓘ	-4	-2	33	43	-3	-68	-149	-117	-75	-72
Cash Flow From Investing Activity ⓘ	557	95	350	188	-236	359	-198	-163	-27	726
Capex	-28	-43	-89	-39	-28	-141	-13	736	-485	-158
Net Investments	325	156	282	182	-265	75	-832	-1,002	454	563
Others ⓘ	261	-18	157	46	58	425	647	103	3	321
Cash Flow From Financing Activityⓘ	-732	-488	-594	-902	-39	-374	-197	235	593	-1,546
Net Proceeds from Shares ⓘ	0	0	0	0	0	0	1	0	6	1
Net Proceeds from Borrowing ⓘ	-468	-229	-124	-117	-124	-37	-77	13	1,015	-907
Interest Paid ⓘ	-204	-190	-195	-102	-74	-70	-32	-53	-142	-140
Dividend Paid ⓘ	-15	-16	-16	-16	-16	-274	-13	-130	-130	-131
Others ⓘ	-44	-54	-259	-667	174	6	-77	405	-156	-370
Net Cash Flow ⓘ	81	-56	22	78	-23	1	-17	265	127	-183

Finance Ratio

Standalone Basis Consolidated Basis

PARTICULARS	Mar'15	Mar'16	Mar'17	Mar'18	Mar'19	Mar'20	Mar'21	Mar'22	Mar'23	Mar'24
Ratios
ROE (%)	-0.82	-7.05	10.15	7.97	-11.03	19.23	48.28	16.93	8.89	14.14
ROCE (%)	4.36	0.61	13.88	12.14	-2.23	23.81	48.99	17.67	11.2	15.2
Asset Turnover Ratio	0.74	0.58	0.73	0.68	0.83	0.91	1.03	0.89	1.03	1.12
PAT to CFO Conversion(x)	N/A	N/A	1.52	5.34	N/A	0.05	0.37	0.4	-1.58	1.34
Working Capital Days
Receivable Days	76	127	94	110	81	60	44	49	41	52
Inventory Days	48	75	86	106	58	72	67	46	64	66
Payable Days	11	17	20	33	28	29	38	35	25	25

Welspun Corp Ltd Stock News

Welspun Corp Ltd FAQs

What is the share price of Welspun Corp?

Company share prices are keep on changing according to the market conditions. The closing price of Welspun Corp on 21-Nov-2024 16:59 is ₹690.5.

What is the market cap of Welspun Corp?

Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 21-Nov-2024 16:59 the market cap of Welspun Corp stood at ₹18,052.3.

What is the P/E ratio of Welspun Corp?

The latest P/E ratio of Welspun Corp as of 21-Nov-2024 16:59 is 41.75.

What is the P/B ratio of Welspun Corp?

The latest P/B ratio of Welspun Corp as of 21-Nov-2024 16:59 is 4.93.

What is the 52-week high and low of Welspun Corp?

The 52-week high of Welspun Corp is ₹805.8 and the 52-week low is ₹441.0.

What is the TTM revenue of Welspun Corp?

The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Welspun Corp is ₹9,306 ( Cr.) .

About Welspun Corp Ltd

Welspun Corp Ltd. (WCL), the flagship company of Welspun Group, which is among the Largest Welded Line Pipe manufacturing companies in the world. In the year 2008, the company was ranked as the 2nd Largest (Large Diameter) Pipe Producer by Financial Times UK, and also been awarded 'The Emerging Company of the Year' by Economic Times. With a strong culture of 'Engineering Excellence,' WCL takes pride in manufacturing and supplying to some of the most critical pipelines in the world from its plants in India, Kingdom of Saudi Arabia and USA. The company has to its credentials supplies to world's one of the deepest pipeline project (Independence Trail in Gulf of Mexico), one of the highest pipeline project (Peru LNG), one of the longest pipeline (Canada to US) and the project involving supplies of one of the heaviest pipe (56 inch X 1.34inch in Persian Gulf). WCL has a list of esteemed clientele which includes Chevron, DOW, Elpaso, Enterprise, Exxon Mobil, GAIL, Hunt Oil, Kinder Morgan, PTTEP, Qatar Petroleum, Reliance, Saudi Aramco, Shell, Statoil, TOTAL and TransCanada to name a few.

Business area of the company

The company is a welded line pipe manufacturing company engaged in offering solution in line pipes with a capacity to manufacture longitudinal submerge-arc welded (LSAW), spiral helical submerged arc welded (HSAW) and high frequency electric resistance welded (HFERW)/high frequency induction (HFI) electrical resistance welded (ERW) pipes. The Company also offers coating, bending and double jointing facilities.

Products of the company

HFW (High Frequency Welded)
ERW (Electric Resistance Welded)
HSAW (Horizontal Submerged Arc Welded)
LSAW (Longitudinal Submerged Arc Welded)
Plates & Coils
Bends

Certification

ISO 9001 certifications
ISO 14001 certifications
OHSAS 18001 certifications

Awards

2001-03: Export performance Awards.
2004: Fastest Growing Steel Products Company.
2006: Award for the highest export - Iron and Steel based product.
2007: Amongst top 100 Corporates in India.
2007: Amongst the 20 Companies to watch out for in 2008.
2007: Amongst the top 3 SAW Pipe Company in the World.
2007: Fastest Growing Steel Products Company.
2007: Fastest Growing Company.
2008: 2nd Largest Steel Pipe Producer in the World (Large Diameter).
2008: Emerging Company of the Year.
2008: Most Valuable Company in Metal Pipes.
2009: National Awards for Export Excellence - Silver Trophy.
2017-18: Sir M. Visvesvaraya Manufacturing Excellence Award2017 for Mandya plant.
2017-18: 11th QCI-DL Shah Quality Award - Platinum : Awarded at 12th national quality conclave for Anjar plant for the project “Case Study on Weld-ability test”
2017-18: Salute to Greatness Award 2017: Awarded by The Martin Luther King Jr Commission of Little Rock, AR.
2017-18: 2nd Annual EKDKN EXCEED award 2018 – OHS category in engineering sector for the best energy practices for Anjar plant.
2018-19: Sufi Steel Awards 2018.
2018-19: Golden Bird Excellence Award 2018.
2018-19: 4th EKDKN Exceed Award 2018.
2018-19: 2nd Annual EKDKN EXCEED Award 2018
2018-19: Kaizen Award 2018.
2018-19: 18th Annual Green Tech Environment Gold Award 2018.
2019-20: Anjar Pipes: 19th Annual Greentech Environment Award 2019 for exceptional contribution towards “Environment and Sustainability”.
2019-20: Dahej: Awarded the Silver Medal in National Awards for Manufacturing Competiveness 2018-19 by IRIM.
2019-20: PCMD awarded the prestigious Apex India OHS Excellence Award for outstanding work in the field of Occupation Health & Safety.
2019-20: CEO With HR Orientation - awarded to MD & CEO WCL, from World Sustainability & HRD Congress.
2019-20: Anjar Pipes: Golden Bird Excellence Award - 2020: Awarded for ‘Outstanding Project on Sustainability Excellence’.

Milestones

1997: Diversified into the pipes business - Submerged Arc Welded (SAW) pipe unit at Dahej, Gujarat, India.
1998: Established the first 50,000 MTPA HSAW mill at Dahej, Gujarat.
2000: Commissioned a 200,000 MTPA LSAW mill at Dahej with Mannesmann Germany.
2001: Embarked on a Joint Venture (JV) with Eupec Coatings GmbH, Germany.
2001: Set up a pipe coating facility in Dahej, Gujarat.
2005: Established Welspun City at Anjar, Gujarat.
2005: Expanded pipe facilities at Anjar, Gujarat.
2007: Bagged a 1,700 km keystone project from Trans Canada.
2008: Integrated plate and coil mill at Anjar, Gujarat.
2008: Set up 150,000 MTPA HSAW mill at Anjar, Gujarat.
2008: Achieved Level II automation, rolled X-70API Grade of 4.5 meters wide.
2009: Commissioned a 350,000 MTPA HSAW pipes facility in Arkansas, US.
2009: Started a coil mill at Anjar, Gujarat.
2010: Rechristened as ‘Welspun Corp Limited’.
2010: Increased capacity for LSAW by 350,000 MTPA in Anjar, Gujarat and for HSAW by 100,000 MTPA in Mandya, Karnataka.
2010: Completed investment in the Middle East with a 300,000 MTPA HSAW facility in Saudi Arabia.
2011: Established Welspun Middle East in Dubai.
2011: Acquired 35% stake in Leighton Contractors (India) Private Limited.
2011: Raised USD 290 million through GDRs & CCDs.
2012: Commenced the installation of a 175,000 MTPA HFIW mill in Arkansas, US.
2012: Enhanced the existing capacity of 100,000 MTPA HSAW in Mandya, Karnataka, further by 50%.
2013: Achieved the highest ever pipe production, sales volumes and order booking at 1 million MTPA.
2013: Commissioned a 175,000 MTPA small diameter HFIW mill in the US to cater to the shale gas business.
2013: Demerged non-pipe businesses into Welspun Enterprises.
2013: Strengthened the core-pipe business management team with several new professional CXO-level hires.
2014: Received the first order from Shell USA, single largest order from Saudi Arabia and strategic orders from Statoil, TOTAL and South Stream.
2014: Commissioned a double jointing plant and internal and external coating plants in Saudi Arabia and Anjar (Gujarat), respectively.
2014: Sustained 1 million MTPA in pipe production, sales volumes and order booking.
2015: Recorded high production and sales volumes at the Saudi Arabia facility with significantly improved financial performance.
2015: Stabilized the HFIW mill and streamlined operations at the US facility.
2015: Revitalized operations at LSAW, and Plate and Coil Mills in India.
2016: Surpassed 1 million MTPA in pipe production and 4th sales volumes for the 4 consecutive year; order book at record high.
2016: Set-up Concrete Weight Coating (CWC) plant at Anjar, Gujarat in JV with Wasco Energy Ltd.
2017: Started production at the Concrete Weight Coating plant at Anjar, Gujarat.
2017: Automatic ID Machining of Crack Arrestor Pipe.
2018: Surpassed 1 million MTPA in pipe production and 5th sales volumes for the 5 time in last 6 years.
2019: WCL completed the establishment of an HSAW Line Pipe Manufacturing facility at Bhopal, MP.
2019: WCL announced the divestment of its Plates and Coil Mill Division (PCMD).
2020: WCL secured major offshore pipes supply contract in Australia for the Barossa offshore Development project from Allseas Marine Contractors Australia.