Now Reading: Welspun Living shares gain 3% after strong Q1, brokerages retain buy
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Welspun Living shares gain 3% after strong Q1, brokerages retain buy
Welspun Living shares gain 3% after strong Q1, brokerages retain buy
Welspun Living shares closed nearly 3 per cent higher at Rs 164.06 on the NSE after hitting a fresh 52-week high of Rs 178. The company reported strong Q1 results with consolidated…
The Story in Brief
Welspun Living shares closed nearly 3 per cent higher at Rs 164.06 on the NSE after hitting a fresh 52-week high of Rs 178. The company reported strong Q1 results with consolidated total income rising 23.5 per cent year-on-year to Rs 2,828 crore. Net profit more than doubled to Rs 161 crore, while EBITDA margin improved to 12.5 per cent.
Brokerages retained buy ratings: Motilal Oswal raised target to Rs 215, JM Financial to Rs 205, and Axis Securities to Rs 195. Key risks include customer concentration and commodity prices. The Vapi floods are expected to impact Q2FY27, but management expects Q3 and Q4 to be unaffected. The US Pillow business is on track to double revenue to US$60 million.
The Indian Opinion
The stock's 52-week high and brokerages' bullish targets create a narrative of unalloyed success. But the risks of customer concentration and commodity price swings are real, and the Vapi flood impact on Q2 is a near-term test. Investors should watch whether the company can sustain double-digit revenue growth and expand margins beyond 12.5 per cent, as management targets 15 per cent. The Q2 numbers will reveal if the flood damage is manageable.
Source: thehindubusinessline.com
This story was synthesised by AI from the source linked above.
