Welspun Enterp (WELENT)
CyclicalFairStock Score: 11/100 — RISKY
Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹561.7 |
| Market Cap | ₹7,617.43 Cr |
| P/E Ratio | 22.88 |
| ROCE | 18.17% |
| ROE | 11.83% |
| Dividend Yield | 0.53% |
| Profit Growth | -50% |
| Debt/Equity | 0.61 |
| Sales Growth | -8.4% |
| Promoter Holding | 56.13% |
| 52-Week Range | ₹412 — ₹824.8 |
| Sector | Construction |
| Book Value | ₹227.22 |
Strengths
- ROCE of 18.17% shows decent capital efficiency despite the downturn
- Promoter holding of 56.13% keeps management aligned with minority shareholders
- Debt-to-equity of 0.68 is moderate and not alarming
- Book value of ₹184.32 provides some asset backing
Concerns
- Sales declined 12.18% and profits fell 39.77%, showing clear business contraction
- Piotroski F-Score of 3/9 indicates weak financial health
- P/E of 20.02 is expensive for a company with sharply falling earnings
- Latest quarter net margin is thin at roughly ₹31 Cr profit on ₹787 Cr sales
AI Analysis
Welspun Enterp is a civil construction business, and that immediately puts me on guard. Construction is a cyclical, capital-hungry industry where competitive moats are hard to build. The numbers here do not inspire confidence. Sales are down 12.18% and profits have fallen 39.77%. In the latest quarter, it earned only ₹31 Cr on sales of ₹787 Cr, a thin margin. The Piotroski F-Score of 3/9 is a red flag, suggesting deteriorating financial health. At ₹508.80, the stock trades at 20.02 times earnings, which is rich for a company whose profits are shrinking. Paying 2.76 times book value of ₹184.32 leaves little margin of safety. Graham would ask: what am I getting for this price? I see a decent ROCE of 18.17% and a manageable debt-to-equity of 0.68, but ROE of 11.83% is only moderate. Promoter holding of 56.13% is comforting, but good ownership cannot offset weak fundamentals. The dividend yield of 0.62% is negligible, so I am not being paid to wait. The FairStock Score of 11/100 calls this risky, and I agree. This is a cyclical business facing a clear downturn, and there is no evidence yet of a turnaround. I would need to see sales and profit growth stabilise, better margins, and a stronger F-Score before I consider this a candidate. For now, this is not a business I would want to own.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer