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    Buy Welspun India, target price Rs 173: Axis Securities

    Synopsis

    Welspun India Ltd., incorporated in the year 1985, is a Mid Cap company (having a market cap of Rs 14035.37 Crore) operating in Textiles sector.

    Buy-Sell---ThinkStockThinkStock Photos
    Promoters held 70.36 per cent stake in the company as of 30-Sep-2021, while FIIs owned 7.77 per cent, DIIs 5.82 per cent.
    Axis Securities has buy call on Welspun India with a target price of Rs 173. The current market price of Welspun India Ltd. is Rs 142.05. Time period given by analyst is one year when Welspun India Ltd. price can reach defined target.

    Welspun India Ltd., incorporated in the year 1985, is a Mid Cap company (having a market cap of Rs 14035.37 Crore) operating in Textiles sector.

    Welspun India Ltd. key Products/Revenue Segments include Rugs, Blankets & Shawls, Traded Goods, Other Operating Revenue, Scrap, Job Work for the year ending 31-Mar-2021.


    Financials
    For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 2501.39 Crore, up 12.31 % from last quarter Total Income of Rs 2227.22 Crore and up 25.54 % from last year same quarter Total Income of Rs 1992.58 Crore. Company reported net profit after tax of Rs 201.60 Crore in latest quarter.

    Investment Rationale
    The bed & bath linen businesses and the new segment of flooring products are expected to be the key growth drivers going forward. The brokerage believes Welspun is well-placed in the HT space given i) Strong industry growth levers; ii) Well-established long-term relationships with customers, and iii) strong brand presence auguring e-commerce and B2C channels. Growth from the new flooring business looks promising. At CMP, the stock trades at 18x FY22E EPS. It assigns a target multiple of 15x FY23E EPS (i.e. at 20% discount to TTM PE) and initiate coverage with a BUY rating with a target price of Rs 173/share, implying an upside of 23%.

    Promoter/FII Holdings
    Promoters held 70.36 per cent stake in the company as of 30-Sep-2021, while FIIs owned 7.77 per cent, DIIs 5.82 per cent.



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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