Welspun Living Ltd.'s share price has climbed 54.6% in the last 12 months, and extended their rally on Tuesday as well, backed by a strong earnings report along with rating upgrade.
The stock surged 8.24% to a high of Rs 182 apiece on the NSE. As of 10:40 a.m., the shares pared some gains to trade 8% higher at Rs 181.7.
The company reported an 83.6% year-on-year rise in consolidated net profit to Rs 161 crore in the first quarter of FY27, compared with Rs 88 crore in the year-ago period.
Consolidated revenue increased 23.7% year-on-year to Rs 2,795 crore from Rs 2,261 crore.
Ebitda rose 42.4% year-on-year to Rs 321 crore versus Rs 225.4 crore a year earlier. Margin improved to 11.5% from 10% in the corresponding quarter last year.
Welspun Living said its home textile exports grew 28.1% YoY, one of the strongest quarters in recent years, supported by improving demand. UK and Europe delivered 20%+ growth.
The company's domestic business sustained strong momentum from the previous quarter, growing nearly 21.3% YoY.
Bullish Calls
Analysts reiterated their bullish view on Welspun Living shares after the company's strong Q1 results and growth outlook. Brokerage firm Nuvama Institutional Equities revised FY27 and FY28 revenue estimates up by 2.2% and 0.6%, and EBITDA estimates by 4.8% and -7.6%, respectively.
Nuvama upgraded Welspun Living shares to ‘Buy' from ‘Hold' and raised the target price to Rs 209 from Rs 145 earlier, valuing the stock at 12x FY28E EBITDA, as demand tailwinds from the UK FTA and a prospective EU FTA open up a fresh avenue of volume-led growth.
Motilal Oswal Financial Services expects Welspun's core business, home textiles to improve and grow at a 15% CAGR over FY26-28 and drive a better margin mix.
Within home textiles, Bath is expected to grow in the high-teens, followed by high-single-digit growth in Bed and Rugs & Carpet. The emerging business is expected to grow at 17% over the next couple of years.
It expects a CAGR of 15%, 44% and 101% in revenue, EBITDA and PAT over FY26-28, led mainly by growth in the emerging business, followed by the home textile portfolio.
Motilal Oswal raised its earnings estimates, led by better visibility. It reiterated its ‘Buy' call and raised Welspun Living share price target to Rs 215 apiece, valuing the stock at 12x FY28E EV/EBITDA.
At 10:45 AM, Welspun Living share price was trading 8.89% higher at Rs 174.00 apiece on the BSE.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.