Welspun Living Q3 - Structural Business Growth, Capex Plans To Bolster Revenue Visibility: Axis Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Axis Securities Report.Welspun Living Ltd.'s reported one of its strongest quarters on all fronts on the back of strong replenishment demand in the USA; however, missed our estimates as we expected higher pickup in the flooring segment.Welspun reported revenue of 2411 crore up by 29% YoY missing our estimate of 2521 crore. The Ebitda came in at 339 crore up by 75% YoY lower than our estimate of 379 crore on account of flooring segment clocking 8.1% margins.This led to an overall profit after tax of 179 crore up by 308% YoY but missed our estimate of 216 crore by 17%..Valuation and recommendation:We marginally revise our estimates to factor in better stable margins and strong operational performance.Consequently, we have revised our target price to Rs 210/share from Rs 175/share earlier resulting ina 28% upside from current market price, valuing the company at 15 times September FY26E as we roll forward our estimates..Key risks to our estimates and target priceDelay in free trade agreement with U.K. and EuroGlobal recessionary and high inflation environment and the resultant slowdown in the U.S. economy.Currency and key commodity fluctuations..Click on the attachment to read the full report:.RateGain Q3 Results Review - Strong With Ebitda Margin Beat; Maintaining A Buy: Anand Rathi.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Welspun Living Q3 - Structural Business Growth, Capex Plans To Bolster Revenue Visibility: Axis Securities

Global recessionary and high inflation environment and the resultant slowdown in the U.S. economy.

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