Welspun Specialty Solutions Ltd

Welspun Specialty Solutions Ltd

₹ 36.2 -3.83%
28 Feb - close price
About

Welspun Specialty Solutions is engaged in the business of manufacturing alloy, stainless steel & its products such as Seamless Tubes & Rolled Products and hence the entire turnover is from alloy and SS steel & its products.

Key Points

Change in product mix
Prior to FY21, Co. was into the carbon steel and alloy business, such as manufacturing alloy-based ingots, blooms, Rolled Bar, Bright Bar and other such products.. Post FY21, Co. has moved to a stainless steel product mix. In December 2021, Co. started manufacturing SS long products and SS seamless pipes and tubes. [1] [2]
Co. restarted its Steel Melting (SMS plant) operations during Q3FY22. [3]

  • Market Cap 1,918 Cr.
  • Current Price 36.2
  • High / Low 46.0 / 14.5
  • Stock P/E 62.9
  • Book Value 0.92
  • Dividend Yield 0.00 %
  • ROCE 6.04 %
  • ROE -37.8 %
  • Face Value 6.00

Pros

  • Company is expected to give good quarter
  • Company's working capital requirements have reduced from 125 days to 46.4 days

Cons

  • Stock is trading at 39.3 times its book value
  • Company has low interest coverage ratio.
  • The company has delivered a poor sales growth of 11.7% over past five years.

* The pros and cons are machine generated. Pros / cons are based on a checklist to highlight important points. Please exercise caution and do your own analysis.

Peer comparison

Sector: Steel Industry: Steel - Medium / Small

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Quarterly Results

Figures in Rs. Crores

Dec 2020 Mar 2021 Jun 2021 Sep 2021 Dec 2021 Mar 2022 Jun 2022 Sep 2022 Dec 2022 Mar 2023 Jun 2023 Sep 2023 Dec 2023
17.83 27.99 18.43 20.71 39.71 84.44 81.76 87.09 111.18 137.80 162.83 207.82 174.75
25.53 32.49 24.71 25.06 42.57 89.35 84.61 93.47 103.31 119.72 142.99 195.82 162.83
Operating Profit -7.70 -4.50 -6.28 -4.35 -2.86 -4.91 -2.85 -6.38 7.87 18.08 19.84 12.00 11.92
OPM % -43.19% -16.08% -34.07% -21.00% -7.20% -5.81% -3.49% -7.33% 7.08% 13.12% 12.18% 5.77% 6.82%
-3.43 141.72 0.02 0.20 1.25 17.65 3.63 6.65 1.50 2.99 3.46 5.71 7.19
Interest 2.49 2.39 3.25 3.22 3.82 7.17 5.09 7.25 8.72 9.25 8.36 8.62 9.10
Depreciation 3.42 3.43 3.60 3.64 3.65 3.60 3.65 3.73 3.77 3.76 3.80 3.89 3.91
Profit before tax -17.04 131.40 -13.11 -11.01 -9.08 1.97 -7.96 -10.71 -3.12 8.06 11.14 5.20 6.10
Tax % 0.00% 0.07% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
-17.04 131.31 -13.11 -11.01 -9.08 1.97 -7.96 -10.71 -3.12 8.06 11.14 5.20 6.10
EPS in Rs -0.32 2.48 -0.25 -0.21 -0.17 0.04 -0.15 -0.20 -0.06 0.15 0.21 0.10 0.12
Raw PDF

Profit & Loss

Figures in Rs. Crores

Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 TTM
580 349 414 332 267 262 240 441 295 93 163 418 683
574 374 413 341 280 277 251 477 366 113 182 401 621
Operating Profit 5 -25 1 -9 -13 -15 -11 -36 -71 -20 -18 17 62
OPM % 1% -7% 0% -3% -5% -6% -4% -8% -24% -21% -11% 4% 9%
2 3 37 34 5 9 10 32 15 138 19 15 19
Interest 42 48 50 50 46 45 47 9 15 11 19 30 35
Depreciation 22 22 22 12 7 7 7 7 10 14 14 15 15
Profit before tax -57 -93 -34 -37 -60 -58 -55 -20 -81 93 -32 -14 30
Tax % 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
-57 -93 -34 -37 -60 -58 -55 -20 -81 93 -32 -14 30
EPS in Rs -5.26 -8.60 -3.15 -3.38 -5.54 -5.39 -5.03 -0.58 -1.66 1.76 -0.61 -0.26 0.58
Dividend Payout % 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Compounded Sales Growth
10 Years: 2%
5 Years: 12%
3 Years: 12%
TTM: 87%
Compounded Profit Growth
10 Years: 6%
5 Years: 12%
3 Years: 23%
TTM: 254%
Stock Price CAGR
10 Years: 31%
5 Years: 15%
3 Years: 59%
1 Year: 150%
Return on Equity
10 Years: %
5 Years: %
3 Years: %
Last Year: -38%

Balance Sheet

Figures in Rs. Crores

Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023 Sep 2023
Equity Capital 65 65 65 65 65 65 65 208 293 318 318 318 318
Reserves -198 -176 -192 -264 -304 -510 -391 -441 -414 -279 -274 -289 -269
Preference Capital 0 40 45 51 59 0 236 230 152 51 15 17
398 323 302 365 359 607 564 179 222 121 226 217 227
194 151 197 127 127 50 343 466 227 140 103 231 269
Total Liabilities 459 363 371 293 246 212 582 412 329 300 372 477 545
207 185 164 123 118 110 105 100 219 224 212 207 202
CWIP 2 1 5 1 0 0 7 85 12 5 6 1 4
Investments 0 0 0 0 0 0 67 0 0 0 0 0 0
250 177 202 169 129 101 402 227 99 71 154 268 338
Total Assets 459 363 371 293 246 212 582 412 329 300 372 477 545

Cash Flows

Figures in Rs. Crores

Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023
37 -33 15 -15 25 18 -5 -2 -27 43 -84 50
-2 -0 -5 -2 -1 4 -74 -18 -48 -9 -4 -5
-36 35 -10 14 -25 -24 320 -222 74 -34 93 -50
Net Cash Flow -1 2 1 -3 -1 -2 241 -243 0 0 5 -5

Ratios

Figures in Rs. Crores

Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023
Debtor Days 71 77 98 73 89 58 122 59 13 40 34 36
Inventory Days 104 124 81 74 106 121 179 159 112 337 431 289
Days Payable 174 135 145 101 130 93 202 169 65 116 255 291
Cash Conversion Cycle 1 65 34 46 65 86 99 50 60 261 211 34
Working Capital Days -22 15 22 82 63 40 18 -3 -24 169 158 46
ROCE % -5% -17% -8% -8% -9% -9% -4% -12% -36% -14% -6% 6%

Shareholding Pattern

Numbers in percentages

Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
53.62% 53.55% 53.55% 53.55% 53.55% 53.55% 53.55% 53.55% 55.17% 55.17% 55.17% 55.17%
0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.02% 0.02% 0.02% 0.02% 0.00% 0.00%
0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
0.00% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
46.38% 46.43% 46.44% 46.44% 46.44% 46.44% 46.43% 46.43% 44.82% 44.80% 44.82% 44.82%
No. of Shareholders 78,89681,08284,70084,60887,12187,00086,32085,83185,06985,10987,83587,778

* The classifications might have changed from Sep'2022 onwards. The new XBRL format added more details from Sep'22 onwards.

Classifications such as banks and foreign portfolio investors were not available earlier. The sudden changes in FII or DII can be because of these changes.

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Documents

Concalls