Welspun Corp Ltd (WELCORP) — share price & stock analysis

Market cap

₹38,978 Cr

P/E

24.2×

ROE

19.4%

vs own 10-yr valuation

82nd pctile

Book value / share

₹347

EPS (TTM)

₹61.1

10-yr median P/E

16.1×

Revenue (FY26)

₹16,770 Cr

Profit after tax (FY26)

₹1,620 Cr

Weinstein stage

Stage 2 (12 weeks)

Data as of

1 July 2026

3 of the 6 things we track are currently moving the right way — most of the dashboard is turning up.

Where the levels actually stand: ROCE 23% — a high-quality engine; effectively no debt; margins at an all-time high. Momentum says which way things are moving; these say where they are.

Read this number for what it is: it measures the DIRECTION of change, not the quality of the business. A mediocre business getting better scores high here; a great one having a soft quarter scores low. Profit, sales and margins count double, and a quarter of the score comes from our earnings-recovery lens (is the profit cycle turning up off its trough?).

Most of this rally is re-rating, not earnings

Since Mar 2016, the stock is up 1,411% while earnings per share grew 809%. The difference is re-rating — investors paying more for the same rupee of profit.pricettm_eps

That works until it doesn’t: from here, earnings have to do the lifting, because the multiple has already done its part.

Today’s P/E of 24.2× means the market is paying up — this is the expensive end of its own 10-year history (82nd percentile).pe_ratio

Price is the weekly close (₹). EPS is trailing-twelve-month profit per share, anchored on Screener's own snapshots; between snapshots it is filled from price ÷ P/E (an exact identity), and any fill straying more than 18% from the neighbouring snapshots is dropped rather than shown. The lower panel is the P/E — what the market pays per rupee of profit; the dotted line is its long-run median (16.1×).

Stage 2: the trend is up, and has been for 12 weeks

Price trends have a life cycle: they base (1), advance (2), top out (3) and decline (4). This chart is in Stage 2: advancing — 12 weeks so far, confirmed.stage

The price sits above its rising 200-day average (₹1,034 today) and its strength against the index is still improving — trends like this persist more often than they reverse, which is why the system rides them instead of guessing the top.dma_200

Beating NIFTY 500 for 21 weeks — relative strength is the market’s live opinion, and right now it is on this stock’s side.rs_mansfield

What would end it: two Friday closes in a row below the 200-day line. That is the house exit rule — mechanical, no debates.dma_200

Out of the loss years — profitable again, still below its best

Over 12 years, sales went from ₹7,705 Cr to ₹16,770 Cr (about 7% a year), and profit from ₹98.0 Cr to ₹1,620 Cr.revenuenet_profit

The books show real losses in FY19 (worst: ₹−22.0 Cr). Everything about today’s cheap-looking numbers must be read against that history — the recovery is what you are buying.net_profit

Sales grew 10% last quarter — the 4th straight quarter of growth

Mar 26 sales were ₹4,313 Cr, up 10% on the same quarter last year.revenue

That makes 4 quarters of growth in a row — this is a trend, not a blip.revenue

Margins have been rebuilt — 5.1% in FY23 to 13.3% now

Of every ₹100 of sales, the company keeps ₹11.7 as operating profit — unchanged from a year ago.opm_pct

Zoom out and this is the page's quiet hero: annual operating margin bottomed at 5.1% in FY23 and has been rebuilt to 13.3% — that recovery, not sales alone, is what powers the profit growth elsewhere on this page.operating_profit

Profit collapsed 47% — mostly from income from outside the core business

Mar 26 profit after tax was ₹371 Cr, down 47% year on year.net_profit

A caution: a meaningful slice of this jump came from income outside the core business — that is lower-quality profit and may not repeat.other_income

The profits are real — they turn into cash

Over the last 5 profitable years, the business reported ₹5,301 Cr of profit and collected ₹6,047 Cr of operating cash — about 114% conversion.operating_cash_flownet_profit

When cash tracks profit this closely, the earnings need no asterisk.

The cash cycle is stable

One rupee now takes about 85 days to go out the door as materials and come back as collected cash.cash_conversion_cycle

The biggest mover: suppliers being paid sooner (133 → 118 days).payable_days

Building hard — new capacity is under construction

The productive asset base has gone from ₹4,923 Cr (FY14) to ₹6,536 Cr, with another ₹1,241 Cr of capacity under construction right now.fixed_assetscwip

Work-in-progress is 19% of the existing asset base — that is a serious bet on future demand. Capacity like this shows up in sales with a lag; it is tomorrow’s growth being paid for today.cwip

The build is self-funded: the last 3 years' investing outflow (₹3,147 Cr) fits inside the operating cash the business generated (₹6,014 Cr).investing_cash_flowoperating_cash_flow

Almost no debt — this company cannot be killed by a bad year

For every ₹100 shareholders have put in (and left in), the company has borrowed ₹26 — total borrowings have shrunk from ₹3,824 Cr to ₹2,355 Cr over the window.borrowings

Every ₹100 kept in the business now earns ₹23 — and the number is rising

Return on capital employed is 23.0% (a year ago: 21.0%). This is the single best test of business quality: what the company earns on the money it keeps.roce_pct

Big money is quietly accumulating

Promoters hold 49.7%, essentially unchanged. Foreign funds own 11.2%, domestic funds 21.5%.promoters_pctfiis_pctdiis_pct

Institutions buying while the story develops is the market’s quiet vote of confidence — they meet management, you don’t.

A turnaround that stuck — the question is what’s left to re-rate

The numbers are genuinely mixed, and the price already assumes the good news continues.

Best thing in the data: cash generation rising (₹1,504 Cr → ₹3,204 Cr).operating_cash_flow

Biggest worry: free cash flow falling (₹1,698 Cr → ₹−510 Cr).operating_cash_flow

Machine-written research from Screener data — every number traces to its source column. Sector Alpha is not a SEBI-registered investment adviser; nothing here is a recommendation to buy or sell. Not investment advice.

Straight answers from the data