Welspun Living shares: Here's why Axis Securities is bullish on the stock

Shares of Welspun Living are in focus after the fourth quarter earnings. The net profit grew 16 per cent to Rs 146 crore while the company's revenue jumped 20 per cent over last year to Rs 2,575 crore.

The stock has recovered over per cent from its 52-week low of Rs 84.05, hit on April 27, 2023. It has also delivered over 1,245 per cent return to its long-term investors in the last 10 years.

Axis Securities expects the company to do well in the coming quarters with demand
recovery in home textiles, moderating raw material prices, and easing logistic tensions. It has maintained a 'Buy' rating on the stock with a target price of Rs 210.

The brokerage firm said that the company has been steadily increasing its presence in emerging and branded businesses, a trend that is expected to contribute positively to margins in the future. On the domestic front, Welspun continues to focus on steadily increasing its presence and continues its brand building.

It believes that Welspun's structural development across high-margin verticals and
retail domestic focus will help not only in divesting business but also in expanding margins in the long term.

"We thus maintain our outlook on Welspun Living as its strong brand, large capacities and industry-leading position will help in rapid demand recovery. Moreover, potential UK and Euro FTA Agreements (combined have the same size as the US Market) can open another untapped market for Welspun Living," Axis Securities added.

About the company

Welspun Living, part of $5 billion Welspun World, is a home textiles company. With a distribution network in more than 50 countries, Welspun is a strategic partner with top global retailers.

LIC of India, HSBC Mutual Fund, Aditya Birla Sunlife MF and Nippon MF are among the top institutional shareholders of the company.
 

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