Welspun Living Ltd.
NSE: WELSPUNLIVWelspun Living Ltd.: A 30-second snapshot
Welspun Living (WELSPUNLIV), a Textiles sector manufacturer, trades at ₹141.02 as of the run date — 11.3% above its 200-DMA of ₹126.65 — with a trailing PE of 57.6 driven by a near-zero earnings base following 5-year earnings decline of -99.8%. Debt-to-equity stands at 54.975, revenue has contracted -9.1% over 5 years, and the company ranks last on quality score (14/100) among the 5 Textiles peers in this dataset. The company announced a ₹2.52 billion share buyback alongside sequential Q4 FY26 revenue and margin improvement, with management projecting double-digit FY27 growth.
P/E
57.6
Forward P/E
14.6
ROE
—
Debt / Equity
54.98
Profit Margin
+2.4%
Div. Yield
+0.1%
5Y ROE > 15%
2/5
5Y FCF > 0
3/5
Quality
32/100
News
7 headlines · 5 positive · 0 negative
WELSPUNLIV: Sequential revenue and margin gains set the stage for double-digit growth and margin expansion in FY 2027 - TradingView
TradingView
WELSPUNLIV: Sequential growth, margin recovery, and strong cash flow set the stage for double-digit FY 2027 growth - TradingView
TradingView
Welspun Living Approves Buyback Of Shares Up To 2.52 Billion Rupees - TradingView
TradingView
WELSPUNLIV: Sequential growth in Q4 FY26, margin recovery, and net debt halved amid external headwinds - TradingView
TradingView
WELSPUNLIV: Sequential recovery in Q4 FY26, major buyback, dividend, and strong domestic growth - TradingView
TradingView
Recent context
- ·In May 2026, Welspun Living approved a share buyback of up to ₹2.52 billion, signalling board confidence in cash flow; the company also reported sequential revenue growth and margin recovery in Q4 FY26.
- ·Multiple May 2026 analyses cite net debt reduction by approximately half and sequential improvement in operating metrics as prerequisites for management-guided double-digit FY27 revenue growth — outcomes that remain forward-looking and unreported.
- ·News sentiment across 7 items is 5 positive, 2 neutral, 0 negative, concentrated in the Q4 FY26 results and buyback announcement; the buyback and dividend together represent a capital-return event not reflected in the 5-year earnings track record.
Strengths
- +Net debt has halved per recent disclosures and debt trend is classified as falling, a positive directional signal against the elevated absolute D/E of 54.975.
- +FCF was positive in 3 of the tracked years, indicating the business has demonstrated capacity to generate cash even through a period of reported profit compression.
- +Price is above both the 50-DMA (₹123.35) and 200-DMA (₹126.65), with a modest 3-month gain of 0.57% and a 52-week drawdown of only -7.74% from the high — relative price stability despite fundamental headwinds.
- +Forward PE of 14.6 compresses sharply from the trailing multiple of 57.6, implying analyst models anticipate a substantial earnings recovery; 10 analysts have coverage on the stock.
Weaknesses
- −Earnings declined -99.8% over 5 years and profit margin is 2.42%, leaving the business highly exposed to any demand or cost disruption.
- −Debt-to-equity of 54.975 is materially above typical non-financial sector norms; sustained high leverage alongside declining revenue creates structural solvency risk if the FY27 recovery thesis does not hold.
- −Quality score of 14/100 is the lowest among all 5 peers in the Textiles comparison set, with only 2 years of ROE above 15% and a consistency score of 39.
- −Revenue has contracted -9.1% over 5 years, and the company ranks 5th of 5 on both PE (highest multiple, weakest earnings base) and quality score within the peer group.
Open questions
- ?Does the sharp compression from a trailing PE of 57.6 to a forward PE of 14.6 reflect a credible, independently verified earnings recovery path, or is it sensitive to assumptions about export demand and margin normalisation?
- ?Given a D/E of 54.975 and 5-year revenue decline, at what revenue or margin level does the debt burden become self-sustaining versus requiring refinancing or equity dilution?
- ?How does Welspun Living's competitive positioning in home textiles — particularly US retail export exposure — differ from peers such as Trident and K.P.R. Mill, which carry lower PE multiples and higher quality scores?
- ?Does the buyback at current prices represent a high-price repurchase relative to historical book value or earnings power, and how does it interact with the elevated debt level on the balance sheet?
Peer comparison: Textiles
Ranks 5 of 5 on qualityTechnical state
Current price
₹141.02
SMA 50
₹123.35
SMA 200
₹126.65
RSI (14)
70.7 (overbought)
From 52w high
-7.7%
1Y return
-1.1%
3M return
+0.6%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highEarnings contracted -99.8% over 5 years while profit margin stands at 2.42%, leaving almost no buffer against cost pressure or revenue volatility.
- highDebt-to-equity of 54.975 is anomalously elevated for a non-financial manufacturer; combined with 5-year revenue decline of -9.1%, this raises material solvency risk if the anticipated earnings recovery does not materialise.
- highQuality score of 14 out of 100 ranks last (5th of 5) among Textiles peers, with only 2 tracked years of ROE above 15% and FCF positive in just 3 of available years.
- mediumRSI of 70.74 is in overbought territory; trailing PE of 57.6 is the highest in the peer group (range 23.2–55.0), driven partly by the near-zero earnings base inflating the multiple.
- mediumConsistency score of 39 and ROE unavailable for both the stock and all 4 listed peers limits assessment of capital efficiency across the Textiles cohort.
Cross-section contradictions
- Forward PE compresses sharply to 14.6 versus a trailing PE of 57.6, implying a large earnings recovery is priced in; however, reported 5-year earnings are down -99.8% and current profit margin is 2.42%, so the gap between forward expectations and recent reported outcomes is wide.
- Price is 11.3% above the 200-DMA (₹126.65) and RSI is overbought at 70.74, yet the stock has returned -1.11% over 12 months and carries the weakest quality score (14) in its peer group — near-term price momentum diverges from the multi-year fundamental record.
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Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days