Shares of Welspun India jumped more than 7 percent on Thursday, November 24, after the company said it expects its revenue to cross the ₹15,000 crore-mark by FY26, growing around 60 percent in the next three year.
During Thursday’s trade, the stock opened at Rs. 76.85 per share, closely against the previous close of Rs. 76.55 and rallied to touch an intraday high of Rs. 82.60. It was trading at ₹80.10, up by 4.63 percent at 10:50 am on the NSE.
The stock touched a 52-week high of Rs. 160 on January 4, 2022 and a 52-week low of Rs. 62.20 on May 12, 2022, indicating that at the current level, the stock is trading 32 percent above its 52-week low and 48.7 percent below its 52-week high.
The stock has grown almost 20 percent in the last six months. However, in the past one year, it has declined by nearly 40 percent. The stock has delivered returns of a little over 10 percent to its shareholders in the last five years.
The home textiles firm is looking at "multiple drivers for growth" in the domestic market besides strengthening the export market.
In an investor presentation, Welspun India said it is poised to grow at "3X of the market growth rate" in the domestic textile market. It expects overall domestic business to contribute around 11 percent of its total revenue by FY26, rising from 3 percent last fiscal, the company said.
The group is focusing on "emerging businesses" which include – domestic retail, licensed and owned brands, e-commerce, flooring & advanced textiles.
In other news, Welspun Innovative Products and Easygo Textiles, two of the firm's fully owned subsidiaries, were authorised for sale or transfer to MGN Agro Properties, a promoter group business, by the Board of Welspun India at its meeting on November 21, 2022.
Earlier this month, the firm reported a 95.86 percent decline in its consolidated net profit to ₹8.33 crore for the second quarter ended September 30, mainly due to high input costs. It had posted a consolidated net profit of ₹201.50 crore in the July-September quarter a year ago.
Established in 1985, Welspun India is a mid valuation company with a market cap of ₹7,563.59 crore. The company’s business segments include home textiles, power and flooring.
According to a Mintgenie poll, 6 analysts on average have a ‘BUY’ call on the stock.