In this blog post, we explore the Welspun Living share price targets for 2024, 2025 to 2030. To know how the stock will perform in the upcoming years, read the complete technical and fundamental analysis report.
Before going on it’s Analysis, We first understand that what he do and his history?
What is Welspun Living Ltd.?
Welspun Living, established in 1985, is a prominent player in India’s textile industry. Specializing in home textiles, the company manufactures a diverse range of products such as terry towels, bed linens, and rugs. Its operations span across three key segments: Home Textiles, Power, and Flooring.
Within the Home Textiles segment, Welspun offers an extensive array of offerings including towels, bath rugs, bedsheets, and fashion bedding. Additionally, it operates in the Power sector, focusing on power generation, and in the Flooring sector, offering a variety of tiles including innovative solutions like Healthy Floor and ResilonX.
Notable brands under Welspun Living’s umbrella include Christy, Spaces, Welspun Health, and Martha. Led by Managing Director Ms. Dipali Goenka, the company remains committed to delivering quality solutions in flooring, textiles, e-commerce, and hospitality, catering to diverse consumer needs.
Company Profile
| Formerly | Welspun India Limited |
| Company type | Public |
| Traded as | NSE: WELSPUNLIV, BSE: 514162 |
| Industry | Textiles |
| Founded | 1985 |
| Founder | Balkrishan Goenka |
| Headquarters | India |
| Key people | – Dipali Goenka (CEO and Joint MD) – Rajesh Mandawewala (MD) |
| Revenue (FY22) | ₹9,377 crore (US$1.2 billion) |
| Net income (FY22) | ₹606 crore (US$76 million) |
| Parent | Welspun World |
| Subsidiaries | – Welspun USA – Christy – Sorema |
| Website | www.welspunliving.com |
Welspun Living Ltd. Fundamental analysis
| Metric | Value |
|---|---|
| Market Cap | ₹ 15,305.98 Cr. |
| Enterprise Value | ₹ 16,173.05 Cr. |
| No. of Shares | 97.18 Cr. |
| P/E | 30.92 |
| P/B | 4.13 |
| Face Value | ₹ 1 |
| Div. Yield | 0.06% |
| Book Value (TTM) | ₹ 38.13 |
| Cash | ₹ 45.27 Cr. |
| Debt | ₹ 912.34 Cr. |
| Promoter Holding | 70.5% |
| EPS (TTM) | ₹ 5.09 |
| Sales Growth | -15.65% |
| ROE | 4.33% |
| ROCE | 6.23% |
| Profit Growth | -61.32% |
Welspun Living Ltd. profit & loss analysis
| PARTICULARS | MAR 2019 | MAR 2020 | MAR 2021 | MAR 2022 | MAR 2023 |
|---|---|---|---|---|---|
| Net Sales | 5,395.26 | 5,323.57 | 5,956.35 | 6,703.47 | 5,654.62 |
| Total Expenditure | 4,600.41 | 4,314.34 | 4,878.29 | 5,813.22 | 5,257.87 |
| Operating Profit | 794.85 | 1,009.23 | 1,078.06 | 890.25 | 396.75 |
| Other Income | 83.04 | 43.14 | 87.57 | 86.55 | 141.15 |
| Interest | 92.50 | 94.82 | 101.42 | 81.33 | 61.15 |
| Depreciation | 401.54 | 388.14 | 330.14 | 276.09 | 250.32 |
| Exceptional Items | -208.02 | 43.16 | 0 | 0 | 0 |
| Profit Before Tax | 175.83 | 612.57 | 734.07 | 619.38 | 226.43 |
| Tax | 34.06 | 137.68 | 207.40 | 227.25 | 74.75 |
| Net Profit | 141.77 | 474.89 | 526.67 | 392.13 | 151.68 |
| Adjusted EPS (Rs.) | 1.41 | 4.73 | 5.24 | 3.97 | 1.54 |
Analysts have varying price targets for Welspun Living (WELSPUNLIV) in 2024, reflecting the inherent uncertainty in stock price predictions.
| Year | WELSPUNIND Share Price Target 2024 |
| 2024 | ₹182.63 to ₹220.00 |
- Average target: ₹210.00, representing a potential upside of 22.19% from the closing price ₹154.75.
- Range of targets: Estimates vary, with some analysts predicting a target as high as ₹220 and others as low as ₹182.63.
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Similar to 2024, analyst predictions for Welspun Living’s (WELSPUNIND) share price target in 2025 differ:
| Year | WELSPUNLIV Share Price Target 2025 |
| 2025 | ₹225.54 to ₹325.20 |
- Average target: ₹225.54, potentially representing a 26.25% increase from the closing price ₹154.75.
- Range of targets: Estimates vary, with some analysts predicting a target as high as ₹325 and others as low as ₹295.
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For Welspun Living’s (WELSPUNLIV) share price target in 2026, analysts offer various predictions based on technical analysis:
| Year | WELSPUNLIV Share Price Target 2026 |
| 2026 | ₹335.6 to ₹491.09 |
- Bullish scenario: ₹335.6 initially, potentially reaching ₹455.10 mid-year and ₹491.09 by year-end.
- Mid-range scenario: An average projection could fall somewhere between the bullish and bearish estimates.
- Bearish scenario: A temporary decline in the early months, potentially recovering to ₹475.8 by mid-year.
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| Year | WELSPUNLIV Share Price Target 2027 |
| 2027 | ₹500 to ₹655 |
- Using Fibonacci projections, the predicted target falls between ₹500 and ₹655 for the first half of 2027.
- By the end of 2027, the target could potentially reach ₹660 under favorable market conditions.
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| Year | WELSPUNLIV Share Price Target 2028 |
| 2028 | ₹665.50 to ₹780.50 |
Bullish scenario: ₹665.50 by the end of 2028, with an initial target of ₹740.50 and a mid-year target of ₹780.50 under favorable market conditions.
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| Year | WELSPUNLIV Share Price Target 2029 |
| 2029 | ₹785 to ₹955 |
- Under a bullish market scenario, the target could potentially reach ₹785 initially, ₹870 mid-year, and ₹955 by the end of 2029.
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| Year | WELSPUNLIV Share Price Target 2030 |
| 2030 | ₹950 to ₹1150 |
Bullish scenario: ₹950 initially, potentially reaching ₹1050 mid-year, and ₹1150 by the end of 2030 under favorable market conditions.
When evaluating the attractiveness of Welspun Living as an investment opportunity, it’s crucial to delve into its financial performance and key metrics.
Here’s a breakdown of essential factors to consider:
- Price-to-Earnings (P/E) Ratio: Welspun Living exhibits a P/E ratio of 30.38, indicating a relatively high valuation and potential overvaluation.
- Share Price: Currently, Welspun Living’s share price stands at Rs 154.75. Utilizing valuation calculators can aid in determining whether the stock is undervalued or overvalued.
- Return on Assets (ROA): Welspun Living’s ROA sits at 2.49%, suggesting potential challenges in generating returns from its asset investments.
- Current Ratio: With a current ratio of 1.45, Welspun Living demonstrates a moderate ability to cover short-term liabilities with its short-term assets.
- Return on Equity (ROE): Welspun Living records a ROE of 4.33%, indicating the company’s capacity to generate profits from shareholders’ investments, albeit at a relatively lower rate.
- Debt-to-Equity (D/E) Ratio: Welspun Living maintains a D/E ratio of 0.26, signifying a favorable capital structure with a low proportion of debt.
- Inventory Turnover Ratio: Welspun Living’s inventory turnover ratio stands at 4.89, highlighting potential inefficiencies in inventory and working capital management.
- Sales Growth: Welspun Living reports a negative revenue growth of -15.65%, indicating a concerning trend in its performance and expansion.
- Operating Margin: The current operating margin for Welspun Living is 7.02%, providing insights into the company’s operational efficiency.
- Dividend Yield: With a dividend of Rs 0.10 and a yield of 0.06%, Welspun Living offers a relatively low dividend in relation to its stock price.
👍Strengths
- The company has significantly reduced its debt burden by ₹ 395.45 Cr.
- It maintains an efficient Cash Conversion Cycle of 54.32 days, indicating effective management of working capital.
- Demonstrating strong cash flow management, the company boasts a CFO/PAT ratio of 1.87.
- With a robust promoter holding of 70.50%, the company enjoys strong internal support and stability.
👎Weakness
- Over the past 3 years, the company has exhibited negative profit growth of -31.64%, signaling operational challenges.
- Despite a modest revenue growth of 2.03% over the same period, the company’s expansion seems limited.
- The company faces contingent liabilities amounting to ₹ 1,514.59 Cr., posing potential financial risks.
- Trading at a high P/E ratio of 30.92, the company may face valuation concerns among investors.
Disclaimer: Dear Readers, Please note, stock price projections for Welspun Living Ltd. in 2024, 2025, and 2030 are based on factors like past performance and market trends. However, investing involves risks, and past performance doesn’t guarantee future results. These projections are for informational purposes only and aren’t financial advice or guarantees. It’s essential to research and consult with experts before making investment decisions.
FAQs
As per analysis, The estimated chances to WalspunLiv share price reach INR 500 in end of 2026 and starting of 2027.
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Conclusion
In conclusion, while Welspun Living exhibits strengths such as a favorable debt position and moderate current ratio, its financial performance metrics suggest areas of concern including negative revenue growth and lower return on equity. Investors should conduct further analysis and consider these factors in conjunction with their investment goals and risk tolerance before making any investment decisions.
