Welspun Living (WELSPUNLIV)

FairStock Score: 53/100 — MIXED

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

Key Financials

AI Analysis

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

I approach Welspun Living as a Graham-style bargain hunter and Buffett-style business owner. At ₹164.06 and ₹15,500 Cr market cap, the market asks a lot: P/E 56.57, P/B 3.20, EV/EBITDA 207.99. Graham Number is ₹51.11, so I’m paying roughly three times that, with margin of safety -145.20%. DCF intrinsic value ₹0.05 reinforces that price is not anchored to present earnings or cash unless one assumes a dramatic, durable improvement I cannot verify here. Business quality is mixed. Textiles can have a narrow moat at best; the numbers show ROCE 14.41% and ROE 4.82%, so capital returns are not exceptional. Debt/Equity 0.47 is manageable, and ₹746 Cr free cash flow is a real strength. Promoter holding 66.24% aligns interests. Piotroski F-Score 6/9 and Altman Z-Score 2.37 suggest not distressed but not fortress-like either. Growth is the puzzle. Sales growth 48.39% and profit growth 111.90% look exciting, but the latest quarter tells a starker story: ₹2,262 Cr sales produced only ₹3 Cr net profit. That thin margin makes the headline growth fragile. The five-year revenue CAGR is only 9.36%, so the recent surge may be cyclical rather than durable. Dividend yield 0.06% offers little income support. For a value investor, this is not a margin-of-safety purchase. The stock may suit a cyclical recovery thesis if margins normalize and FCF persists, but the current valuation already prices in much of that hope. I would wait for earnings power to catch up with the price.

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