Welspun Corp Limited
Welspun Corp Limited Fundamental Analysis
Welspun Corp Limited (WELCORP.BO) shows moderate financial fundamentals with a PE ratio of 10.64, profit margin of 11.85%, and ROE of 26.29%. The company generates $163.9B in annual revenue with weak year-over-year growth of -19.39%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 34.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze WELCORP.BO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentWELCORP.BO demonstrates superior asset utilization.
Valuation Score
ExcellentWELCORP.BO trades at attractive valuation levels.
Growth Score
ModerateWELCORP.BO shows steady but slowing expansion.
Financial Health Score
ExcellentWELCORP.BO maintains a strong and stable balance sheet.
Profitability Score
WeakWELCORP.BO struggles to sustain strong margins.
Key Financial Metrics
Is WELCORP.BO Expensive or Cheap?
P/E Ratio
WELCORP.BO trades at 10.64 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, WELCORP.BO's PEG of -1.02 indicates potential undervaluation.
Price to Book
The market values Welspun Corp Limited at 2.52 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.10 times EBITDA. This is generally considered low.
How Well Does WELCORP.BO Make Money?
Net Profit Margin
For every $100 in sales, Welspun Corp Limited keeps $11.85 as profit after all expenses.
Operating Margin
Core operations generate 10.14 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $26.29 in profit for every $100 of shareholder equity.
ROA
Welspun Corp Limited generates $11.74 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Welspun Corp Limited generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Welspun Corp Limited generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
WELCORP.BO converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.64
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.52
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.26
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.19
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.31
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.26
vs 25 benchmark
ROA
Return on assets percentage
0.12
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How WELCORP.BO Stacks Against Its Sector Peers
| Metric | WELCORP.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.64 | 27.01 | Better (Cheaper) |
| ROE | 26.29% | 949.00% | Weak |
| Net Margin | 11.85% | -16159.00% (disorted) | Strong |
| Debt/Equity | 0.19 | 0.48 | Strong (Low Leverage) |
| Current Ratio | 1.31 | 4.42 | Neutral |
| ROA | 11.74% | -6411.00% (disorted) | Strong |
WELCORP.BO outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Welspun Corp Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
43.19%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
201.69%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
96.03%
Industry Style: Cyclical, Commodity, Value
High Growth