Welspun India Share Price Target 2022, 2023, 2024, 2025, 2030

Welspun India Share Price Target 2022, 2023, 2024, 2025, 2030: Today, in this article we will analyze Welspun India Ltd. (WIL) which is a Welspun Group company.

Investing become easy if you invest in a company that you know very well. So, if you are invested or planning to invest in Welspun India Ltd then you will find here a complete in-depth analysis of the company.

Also, we will discuss the strengths and weaknesses along with Welspun India Share Price Target 2022, 2023, 2024, 2025, 2030.

Welspun India Share Price Target 2022, 2023, 2024, 2025, 2030

Welspun India Share Price Target 2025 2030

Welspun India was founded on 17 January 1985 in the name of Welspun Winilon Silk Mills Pvt. Ltd. The company is a textile company which is headquartered in Mumbai, Maharastra.

Mr. Balkrishan G. Goenka is the Chairman and Mr. Rajesh Mandawewala is the MD of the company.

Business Model of Welspun India

Welspun India Ltd. is a Welspun Group company. WIL offers a variety of products like towels in different sizes and qualities, bed linen using state-of-the-art technology and the best quality of Egyptian cotton. The company also launched organic products utilizing the benefits of Soya, milk, Seaweed and Bamboo.

The product range of Welspun India:

The company is Asia’s largest Terry Towel producer.

  • Bath – Embroidered Towels -Stripes  -Bathrobe -Sublistatic
  • Bed – Bed Linen
  • Top of Bed – Embroidered Towels  -Sublistatic
  • Rug – Embroidered Towels -Stripes -Sublistatic

There are three types of cotton produced by the company –

  1. Upland Cotton – 90% market share
  2. Egyptian cotton
  3. Pima Cotton

Welspun India is an Export-oriented Home textile company, that exports to more than 50 countries of its 94% of home textiles products.

The main business of the company comes from exports. The company exports more than 68% of its production to the United State, 23% to Europe and the balance to Australia, and Mauritius. Welspun India supplies 17 out of the top 30 retail chains in the world.

Thus the business of the company is diversified and well organized.

Welspun India Share Price Target 2022

Welspun India Ltd is working in the textile industry. The company is a small company. The market capitalization of the company is more than ₹ 7,000 cr.

The current stock price of the company is around ₹70. The P/E Ratio of Welspun India is 11.69 and the sector P/E is 105. It is showing that the company is cheaper than its industry.

The company is the leading and largest home textile company in the country. Welspun India is one of the largest companies among home textile suppliers in the United State.

Welspun India Share Price Target 2022
First Target ₹76
Second Target ₹81

Related:

Welspun India Share Price Target 2023

The company is a very well-diversified portfolio. Also, the company can meet higher demand due to its high capacity.

The sale of the company is increasing year on year basis. Welspun India is maintaining a good EBITDA Margin of 19.34.

Welspun India Share Price Target 2023
First Target ₹86
Second Target ₹93

Welspun India Share Price Target 2024

Although the sales figure is not up to the mark, but the management of the company is very efficient. They will surely try to increase their market share.

Welspun India entered the Dow Jones Sustainability World Index in December 2021 due to strong environmental performance as well as significant enhancement in its social and governance impact parameters.

Welspun India Share Price Target 2024
First Target ₹115
Second Target ₹123

Welspun India Share Price Target 2025

The company is a solid company also the cash position also satisfactory.

But there are some threats also exist viz. revenue decline in exporting market, unfavorable currency movement and increased cotton prices. These are the actual threats as management can’t do so much in these types of problems.

So, as an investor, you must remember all these things. Despite all these, the company may generate a good return for its investors in the long run.

Welspun India Share Price Target 2025
First Target ₹128
Second Target ₹135

Welspun India Share Price Target 2030

There are lots of positives for the company. If the company expands its business properly then can be a multi-bagger stock.

To achieve this status company needs to capture more markets and try to keep its quality standard. Also, dependency on some countries will require to be eliminated.

Welspun India Share Price Target 2030
First Target ₹325
Second Target ₹350

Strengths of the company

Financial strengths:

  • The company has shown a good profit growth of 20.09% over the past 3 years.
  • Welspun India has significantly decreased its debt by ₹865.44 cr.
  • ROE is 13.71% and RoCE 12.13% over the last three years.
  • A healthy interest coverage ratio of 8.24.
  • Free cash flow per share of ₹9.39.
  • The company has an efficient Cash Conversion Cycle of 34.31 days.
  • The company has good cash flow management – CFO/PAT is at 1.98.
  • High promoter holding of 70.36% in the company.
  • Increasing EPS.

Other strengths:

  • The company has a strong portfolio of brands catering to both classes and the masses.
  • Capacity expansion and scale-up in the emerging business to drive growth.

Weaknesses of the company

Financial weaknesses:

  • Bad quick ratio.
  • The debt burden of ₹ 1,394.40 Cr.
  • Sales growth of last 5 years is not satisfactory which stand at 4.05%.
  • Welspun India has shown poor revenue growth of 6.17% for the past 3 years.
  • The company has contingent liabilities of 1,193.62 cr.

Other Threats and weaknesses:

  • Inability is seen to consistently expand the flooring solution segment.
  • In US/EU markets any adverse change in import duty structure for Indian home textiles can lead negative impact on the earnings of the company.
  • The company exports more than 90% of its total production. Welspun India is exposed to currency fluctuations which can significantly impact profitability.

Shareholding pattern of Welspun India

Public 15.88%
Promoters 70.36%
FII 8.52%
DII 5.25%
Others 0%

Annual Reports of the company:

Competitors of Welspun India

KPR Mill, Trident, Raymond, Dollar Ind, Swan Energy, and Siyaram are some competitors of the company.

Related:

Welspun India Price Target 2022, 2023, 2024, 2025, 2030

Welspun India Share Price Targets
First Target (2022) ₹76
Second Target ₹81
First Target (2023) ₹86
Second Target ₹93
First Target (2024) ₹115
Second Target ₹123
First Target (2025) ₹128
Second Target ₹135
First Target (2030) ₹325
Second Target ₹350

Final Thoughts

Welspun India stock gives a CAGR return of 8.02% in the last three years. These returns are not so great. But the company has the potential to grow fast.

The company is working in the textile sector which always creates a large competition in the market. Also, the main revenue depends on the foreign market.

There is no doubt that Welspun India is trying its best to create a better position in the textile segment. In the future, if the business of the company will grow according to the management’s plan, then there is full potential to see good growth in the stock price.

So, Friends if you like the article Welspun India Share Price Target 2022, 2023, 2024, 2025, and 2030 then please share it with your friends on social media networks.

Disclaimer – In this article we have just evaluated the company. Also, we are not SEBI registered advisors. We have not provided any investment advice on this stock. This article is just for educational purposes only. Before doing any investment please research yourself or take the advice of your financial advisor.

FAQ :

  1. Who is the owner of Welspun India?

    Welspun Group is the owner of the company.

  2. What is the future of Welspun India?

    The forecast growth for this company in the near future is 8.6% per annum.

  3. Is this the right time to invest in Welspun India shares?

    Long-term investors can grab this stock at a good valuation.

  4. Is Welspun India a good stock to buy?

    Welspun India is a good company. But in the future how it will perform depends on how the business performs. In the long term, the risk may be rewarded.

  5. What does Welspun India do?

    Welspun India offers a variety of products like towels in different sizes and qualities, the best quality of Egyptian cotton and bed linen using state-of-the-art technology. The company launched organic products utilizing the benefits of milk, soya, seaweed, and bamboo.

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