Foreign brokerage Jefferies is bullish on smallcap textiles stock with a multibagger return of 281 per cent in the last 5 years. The brokerage has recommended buying the stock for a target of Rs 185, implying gains of 38.16 per cent return in the scrip.
The brokerage basis its rationale for the stock on buying Welspun Living in the backdrop of its expansion over time into newer categories and building a branded play.
Further, it expects the textile company to deliver 18 per cent EPS CAGR over FY25-28e, even as FY26 would be muted due to near-term tariff uncertainty.
Welspun Living Q4 results
The company’s Q4 PAT declined 10 per cent on-year to Rs 132 crore in the March quarter, while revenue rose 2.74 per cent on-year to Rs 2,645.90 crore during the period under review.
EBITDA for the fourth quarter of FY25 was Rs 318 crore as compared with Rs 400 crore in the corresponding period last fiscal year. EBITDA margin reduced to 12 per cent in Q4 FY25 as against 15.3% in Q4 FY25.
On the segmental front, the Home Textile business reported revenue of Rs 2,452.56 crore, up 1.27% YoY, while the Flooring business recorded revenue of Rs 195.76 crore in Q4 FY25, reflecting a de-growth of 8.05%.
Net debt stood at Rs 1,603 crore as of March 2024, higher by Rs 248 crore compared to Rs 1,354 crore in March 2023, but lower by Rs 56 crore from Rs 1,658 crore reported in December 2024.
On a full-year basis, the company’s net profit slipped 6.15% to Rs 639.16 crore on an 8.94% rise in net sales to Rs 10,545.09 crore in FY25 over FY24.
On capex front the company said In Q4FY25, we spent ₹106 cr towards capex, majorly towards the Towel project at Anjar. FY25 capital outlay stood at Rs 701 cr
On the capex front, the company stated that it spent Rs 106 crore in Q4 FY25, primarily towards the Towel project at Anjar. The total capital outlay for FY25 stood at Rs 701 crore.
Analysts take on Welspun Living
Zee Business Managing Editor Anil Singhvi in his stock recommendations for today recommended buying Welspun Living for a target of Rs
137, 140, 142, keeping stop loss at Rs 130 per share.
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