Welspun Living: PAT up 629% & Revenue up 20% in 9M-24 at a PE of 20
WELSPUNLIV has given a guidance of 20%+ revenue CAGR till FY26 with an EBITDA of 15%.
1. Global Home Textiles Leader
welspunindia.com | NSE: WELSPUNLIV
reaching highest Q3 revenues, growing at 29% and highest ever revenues in Domestic and Flooring businesses leading to increased market share in all areas of our operations
2. FY20-23: Growth momentum derailed in FY23
3. H1-24: PAT up 1054% & Revenue up 16%
Strong margin expansion
4. Strong Q3-24: PAT up 317% & Revenue up 29% YoY
5. Strong 9M-24: PAT up 629% & Revenue up 20% YoY
Strong margin expansion
6. Business metrics: Strong & improving return ratios
7. Strong outlook: Revenue growth of 23%
i. FY23-26: Revenue CAGR of 23%+
FY23 revenue of Rs 8,093.76 cr growing to Rs 15,000 cr by FY26 implies a revenue CAGR of 23%
ii. FY24: 15% revenue growth
9M-24 revenue growth of 20% leading to 15% revenue growth in FY24 implies that WELSPUNLIV management is being conservative.
achieving revenue growth around 15% in FY 2024.
iii. FY24: 15% EBITDA Margin
15% EBITDA
8. PAT growth of 629% & Revenue growth of 20% in 9M-24 at a PE of 20
9. So Wait and Watch
If I hold the stock then one may continue holding on to WELSPUNLIV
Based on 9M-24 performance, WELSPUNLIV looks on track to deliver the strongest operating PAT & revenue in FY24 and reach peak revenue & profitability of FY22
The roadmap of Rs 15,000 cr revenue by FY26 provides a reason to continue with WELSPUNLIV
10. Join the ride
If I am looking to enter WELSPUNLIV then
WELSPUNLIV has delivered PAT growth of 629% and revenue growth of 20% in 9M-24 at a PE of 20 which makes the valuations quite acceptable over the short term.
With an outlook for 20%+ top-line growth till FY26 a PE of 20 can be sustained by WELSPUNLIV over the longer term
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