Welspun Corp (WELCORP)

FairStock Score: 66/100 — STEADY

Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Mr. Market is offering Welspun Corp at ₹1,873.30, mid-way in a wild 52-week range of ₹710.00–₹2,899.95. As a Buffett/Graham investor, I start with safety. The positives are real: ROE is 26.08%, ROCE 21.24%, debt/equity is only 0.25, free cash flow is ₹1,698 Cr, Piotroski F-Score is 7/9, and Altman Z-Score is 2.89. The latest quarter showed sales of ₹4,532 Cr and net profit of ₹456 Cr, and promoter holding of 49.73% aligns interests. But the trend is troubling: sales growth is -17.03%, profit growth is -54.54%, and the five-year revenue CAGR is only 7.02%. Iron and steel products are cyclical, so swings are not shocking, but I cannot treat recent profits as stable. Valuation is split. P/E is 21.41 and P/B is 5.40 against book value of ₹347.08, which is not cheap. Graham Number is ₹686.47 and DCF intrinsic value is ₹99.94, both far below the market price; margin of safety is -20.22%, so Mr. Market is not paying me for risk. On the other hand, PEG of 0.69 and EV/EBITDA of 3.34 suggest earnings may normalize favourably. Dividend yield of 0.27% offers almost no income support. FairStock Score of 66/100 says steady, not exceptional. I would classify it Cyclical: strong balance sheet and returns, but volatile earnings and a price above conservative intrinsic anchors. I would wait for a wider margin of safety or evidence that sales and profit declines have bottomed.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer