Please refer to important disclosures at the end of this report
1
Welspun India Limited (WIL) is global textile force with innovation leadership and
strong consumer focus.
W
IL is amongst the top three home textile manufacturers
in the world and the largest home textile company in Asia. The Textiles business
has been growing at a CAGR of 25% since the inception of the Anjar Facility. The
capacity of the company is running at high level of utilization in towels and
sheets. The new investment of `600cr. with capacity of 7million square meter pe
r
annum is planned in flooring solutions to be invested over FY18 and FY19. In the
medium to long term, earnings seem to recover as the company focuses on
flooring solutions, smart textiles and new markets & products. The compan
y
expects that the Flooring solution would be the next growth driver fo
r
international as well as domestic market where the company at the moment
plans to invest going ahead. Recently the company has down Tie-ups with
Coveted Global Brands including Disney, Minions, FC Barcelona. With cash flo
w
improvement through tight working capital management and calibrated cape
x
the company has reported a Cash profit of 42% (FY14-FY16) CAGR which is a
positive sign for the company. The company has reported healthy profit growth
of 46% CAGR and has return on equity (ROE) of 34% over the last 3 years. The
company has been maintaining a healthy dividend payout of 19.9% (Div yield:
1.4%). Hence Buy.
BUY
CMP `85
Stock Info
Sector
Beta
Bloomberg Code
Shareholding Pattern (%)
Promoters 73.5
MF / Banks / Indian Fls 5.6
FII / NRIs / OCBs 11.9
Indian Public / Others 9.1
Abs. (%) 3m 1yr 3yr
Sensex 10.9 19.7 34.8
Welspun India 22.4 (11.8) 770.3
.
1.1
Reuters Code WLSP.BO
1
BSE Sensex 29,398
Nifty 9,085
Face Value (
`
)
Textiles
Market Cap (
`
cr) 8,525
52 Week High / Low 120/46
Avg. Daily Volume 6,87,398
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
W
elspun India
Others | Textiles
March 17, 2017
Welspun India | Textiles
March 17, 2017
2
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement Welspun India
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment
p
eriod
)
: Reduce
(
-5% to -15%
)
Sell
(
< -15
)