Welspun Corp Ltd

Welspun Corp Ltd

₹ 528 -5.31%
28 Feb - close price
About

WCL is one of the largest manufacturers of large diameter pipes globally. The company also manufactures BIS-certified Steel Billets, TMT (Thermo-Mechanically Treated)
Rebars, Ductile Iron (DI) Pipes, Stainless Steel Pipes, and Tubes & Bars. The company acquired Sintex-BAPL, a market leader in water tanks and other plastic products, to expand its building materials portfolio. It has also made strategic acquisition of specified assets of ABG Shipyard. [1]

Key Points

Growth Strategy[1]
The Company has been undergoing a transformation journey since past couple of
years by diversifying into related businesses that have good future growth potential. Setting up of DI Pipes facility in Anjar, Gujarat and acquisition of Sintex BAPL are a part of that strategy.

  • Market Cap 13,845 Cr.
  • Current Price 528
  • High / Low 625 / 184
  • Stock P/E 12.8
  • Book Value 193
  • Dividend Yield 0.95 %
  • ROCE 6.42 %
  • ROE 3.21 %
  • Face Value 5.00

Pros

  • Company is expected to give good quarter
  • Company has been maintaining a healthy dividend payout of 36.7%

Cons

  • Stock is trading at 2.74 times its book value
  • The company has delivered a poor sales growth of 8.98% over past five years.
  • Company has a low return on equity of 9.73% over last 3 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

Consolidated Figures in Rs. Crores / View Standalone

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
1,393 2,036 1,299 1,542 1,442 2,011 1,322 1,964 2,402 4,070 4,069 4,059 4,750
1,207 1,804 1,134 1,427 1,347 1,940 1,293 2,095 2,236 3,650 3,712 3,660 4,287
Operating Profit 186 231 165 115 95 71 29 -131 166 421 357 400 463
OPM % 13% 11% 13% 7% 7% 4% 2% -7% 7% 10% 9% 10% 10%
153 237 40 54 58 415 76 191 38 91 50 227 62
Interest 13 13 17 23 27 30 31 47 70 95 92 75 62
Depreciation 54 62 55 63 64 63 61 70 80 91 86 86 90
Profit before tax 272 393 133 83 61 393 13 -58 53 325 228 466 373
Tax % 24% 5% 27% 33% 37% 33% 107% -9% 56% 26% 26% 17% 21%
206 373 97 55 39 264 -1 -63 23 240 168 387 294
EPS in Rs 7.63 11.74 3.74 2.40 1.75 9.05 0.16 -2.16 0.89 9.02 6.32 14.70 11.15
Raw PDF

Profit & Loss

Consolidated Figures in Rs. Crores / View Standalone

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
8,977 9,083 7,705 8,450 7,236 5,899 6,347 8,953 9,957 7,153 6,505 9,758 16,949
8,118 8,384 7,035 7,595 6,449 5,380 5,874 8,310 8,794 6,369 6,032 9,264 15,309
Operating Profit 858 699 670 855 787 519 473 644 1,163 784 473 494 1,640
OPM % 10% 8% 9% 10% 11% 9% 7% 7% 12% 11% 7% 5% 10%
266 -26 174 96 99 139 128 -106 281 629 544 386 429
Interest 400 358 296 283 241 236 170 177 144 85 102 243 325
Depreciation 352 353 406 436 386 386 258 260 233 246 255 303 352
Profit before tax 373 -39 141 231 258 36 173 101 1,067 1,082 661 334 1,392
Tax % 40% -126% 31% 8% 31% 72% 12% 122% 39% 24% 33% 40%
224 -92 98 214 179 10 153 -22 654 827 444 199 1,089
EPS in Rs 10.47 -2.67 2.79 2.62 5.72 1.00 5.97 -0.50 24.36 29.42 16.82 7.90 41.19
Dividend Payout % 5% -19% 18% 19% 9% 50% 8% -100% 43% 17% 30% 63%
Compounded Sales Growth
10 Years: 1%
5 Years: 9%
3 Years: -1%
TTM: 120%
Compounded Profit Growth
10 Years: 11%
5 Years: 0%
3 Years: -39%
TTM: 434%
Stock Price CAGR
10 Years: 24%
5 Years: 36%
3 Years: 60%
1 Year: 187%
Return on Equity
10 Years: 7%
5 Years: 10%
3 Years: 10%
Last Year: 3%

Balance Sheet

Consolidated Figures in Rs. Crores / View Standalone

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 114 131 131 132 133 133 133 133 130 130 130 131 131
Reserves 3,979 5,526 2,718 2,667 2,666 2,677 2,721 2,665 3,085 3,952 4,298 4,582 4,919
Preference Capital 0 0 0 0 0 0 0 0 0 51 402 36
5,341 5,577 3,824 3,021 2,644 1,843 1,386 1,305 1,061 970 1,655 3,345 1,989
6,364 5,648 2,157 3,998 3,195 3,595 3,452 4,097 3,667 2,639 3,086 7,215 5,135
Total Liabilities 15,798 16,883 8,830 9,818 8,637 8,247 7,693 8,200 7,943 7,692 9,169 15,274 12,174
6,724 8,021 4,923 4,662 3,730 3,356 3,046 1,567 1,617 2,599 2,433 4,910 4,839
CWIP 627 546 115 80 34 32 17 47 83 147 1,261 87 104
Investments 1,979 1,867 1,140 805 1,017 725 488 476 784 1,713 2,307 1,537 1,288
6,468 6,448 2,653 4,271 3,855 4,134 4,143 6,110 5,460 3,233 3,168 8,740 5,943
Total Assets 15,798 16,883 8,830 9,818 8,637 8,247 7,693 8,200 7,943 7,692 9,169 15,274 12,174

Cash Flows

Consolidated Figures in Rs. Crores / View Standalone

Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Mar 2023
1,429 103 227 901 354 403 981 623 648 774 218 -185
-2,117 -164 -229 338 -326 618 184 -255 -49 -848 -201 -348
963 -265 -527 -1,106 -99 -979 -761 -335 -743 -198 453 909
Net Cash Flow 275 -327 -528 133 -71 42 405 33 -144 -271 470 376

Ratios

Consolidated Figures in Rs. Crores / View Standalone

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 62 71 30 49 71 91 76 48 46 34 46 43
Inventory Days 159 156 94 138 107 159 125 129 127 93 78 286
Days Payable 211 184 48 154 132 198 177 92 81 55 75 130
Cash Conversion Cycle 10 42 77 33 45 52 24 86 92 72 48 199
Working Capital Days -3 14 30 27 34 47 23 56 50 55 -13 26
ROCE % 9% 5% 5% 8% 8% 5% 7% 12% 30% 19% 13% 6%

Shareholding Pattern

Numbers in percentages

3 Recently
Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
50.02% 50.01% 50.01% 50.01% 50.01% 50.01% 49.90% 49.90% 49.99% 49.99% 49.96% 49.96%
12.71% 11.71% 9.06% 6.12% 7.34% 8.95% 9.03% 7.96% 7.27% 7.78% 9.42% 10.56%
8.77% 8.02% 7.41% 6.72% 9.30% 10.57% 11.19% 11.04% 11.43% 10.96% 11.53% 11.23%
0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.01% 0.01% 0.01% 0.01% 0.02% 0.00%
28.49% 30.26% 33.52% 37.15% 33.35% 30.47% 29.87% 31.10% 31.29% 31.28% 29.05% 28.22%
0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.03% 0.03%
No. of Shareholders 78,3551,00,8281,14,3471,01,53392,53292,82696,69087,64385,79483,31582,05899,284

* 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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