Welspun Living
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Welspun Living is on a recovery trajectory, with management highlighting double-digit revenue growth in its core home textile segment and a strategic shift towards higher-margin soft flooring. This optimism is supported by favorable trade dynamics, particularly with the US, and new market penetration in the UK, Europe, and Oceania. Despite short-term challenges, such as the Vapi plant closure and raw material cost pressures, Vista's forecast anticipates a 15% revenue CAGR through FY28, underpinned by operational improvements and capacity optimization. The company's focus on branded businesses and premiumization is expected to enhance margins, with EBITDA margins projected to reach the 'teens' in FY27. The textiles industry is experiencing steady growth, driven by rising consumer demand and innovation, which aligns with Welspun's strategic initiatives. However, watchpoints include low capacity utilization in certain segments and the profitability of the flooring business. Over the next 12-24 months, key opportunities lie in expanding the flooring segment and leveraging trade agreements, while headwinds include ongoing raw material cost pressures and competitive pricing dynamics
Why We Like This Stock
- Management's expectation of double-digit revenue growth and a strategic pivot towards higher-margin products
- Favorable trade dynamics and new market penetration enhancing revenue potential
- Projected margin expansion driven by operational efficiencies and a focus on premiumization
Things To Watch Out For
- Short-term headwinds from the Vapi plant closure and sustained raw material cost pressures
- Low capacity utilization in certain segments impacting profitability
- Competitive pricing pressures within the textiles industry affecting margin stability
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 9,679 | 10,545 | 9,399 | 11,079 | 12,362 |
| Profit Before Tax (Cr.) | 966 | 858 | 306 | 574 | 664 |
| PBT Margin | 10.0% | 8.1% | 325.6% | 5.2% | 5.4% |
| Net Profit (Cr.) | 857 | 668 | 222 | 415 | 463 |
| Earnings Per Share | 9.2 | 7.0 | 2.3 | 4.2 | 4.9 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Axis Securities | ▲ Buy | 180 | 18-May-2026 |
| Motilal Oswal | ▲ Buy | 215 | 14-Aug-2026 |
Company Overview
Show Company Profile
Welspun Living Limited manufactures and sells home textile products in India and internationally. It operates through two segments, Home Textiles and Flooring. The company offers bedding solutions, including utility and fashion bedding, and bed sheet products; and spunlace, needle punch, and wet wipes. It also provides bath solutions, such as towels, bathrobes, and bathroom rugs, as well as mats, area rugs, and carpets. In addition, the company offers flooring products comprising SPC, and grass tiles, and wall to wall carpets, as well as rugs and artificial grass. Further, it is involved in power generation; home textile product trading; and real estate business. It offers its products under the owned and licensed brands, such as Christy, Spaces, Welspun, Welspun Flooring, SPUN, Welhome, and Martha Stewart. The company was formerly known as Welspun India Limited and changed its name to Welspun Living Limited in September 2023. Welspun Living Limited was incorporated in 1985 and is headquartered in Mumbai, India. Welspun Living Limited is a subsidiary of Welspun Group Master Trust.