Welspun Living share price jumped over 11% to hit a fresh 52-week high on Friday, after the company reported strong Q1 results. The textile stock rallied as much as 11.38% to a high of Rs 178.00 apiece on the BSE.
Welspun Living reported an 83.6% surge in Q1FY27 consolidated net profit to Rs 160.7 crore from Rs 87.55 crore in the year-ago period.
The company's revenue grew 23.7% to Rs 2,795.4 crore from Rs 2,260.5 crore, year-on-year (YoY).
At the operational front, earnings before interest, taxes, depreciation and amortisation (EBITDA) in the June quarter rose 42.4% to Rs 321.1 crore from Rs 225.4 crore, while EBITDA margin improved to 11.5% from 10.0%, YoY.
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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.
Analysts reiterated their bullish view on Welspun Living shares after the company's strong Q1 results and growth outlook.
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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.
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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.
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