Welspun Enterprises Ltd. (WELENT) AI Stock Analysis

• Market Cap: ₹63.84B
• Dividend Yield: 0.58%
• Average Volume (3M): 32.40K
• Price to Earnings (P/E): 74.1
• Beta (1Y): 1.40
• Revenue Growth: 9.11%
• EPS Growth: 16.30%
• Country: IN
• Employees: 30,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 1.76
• Shares Outstanding: 138,413,800
• 10 Day Avg. Volume: 31,266
• 30 Day Avg. Volume: 32,398
• PEG Ratio: 2.01
• Price to Book (P/B): 2.50
• Price to Sales (P/S): 1.77
• P/FCF Ratio: -19.51
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 25.7
• Revenue Forecast (FY): ₹32.52B

• Rating: 63 Neutral
• Price Target: ₹532.00 ▲(6.97% Upside)
• Action: Downgraded Date: 01/20/26
• Date: Action: Downgraded 01/20/26

The score is primarily driven by solid revenue growth and acceptable leverage, offset by weak cash flow quality and some margin pressure. Technical indicators are mixed with a broadly below-key-moving-averages setup and negative MACD, while valuation is moderate but supported only lightly due to a low dividend yield.

Positive Factors

Revenue growth & gross margin

Sustained top-line expansion and a healthy gross margin indicate durable demand for WELENT's execution capabilities. Consistent revenue growth plus strong gross margins suggest competitive project pricing, scale benefits and core construction efficiency that support medium-term profitability.

Moderate leverage and solid equity base

A moderate debt burden with a meaningful equity base and mid-teens ROE gives the company financial flexibility to bid on large EPC projects and absorb execution volatility. This leverage profile supports growth without implying excessive financial strain over the coming months.

Infrastructure specialization & govt client base

Concentration on water and transport infrastructure for public-sector clients creates durable, policy-driven demand and specialist know-how. That sector focus supports predictable project pipelines, potential annuity/concession revenue and a competitive moat based on domain experience and public contracting relationships.

Negative Factors

Weak operating cash conversion

Earnings are not converting to cash, signaling working-capital pressures or delayed receipts from public clients. Persistent negative FCF growth and poor OCF conversion can constrain capex, bond/bid capacity, and force reliance on financing, raising execution and liquidity risk over the medium term.

Rising liabilities and falling equity ratio

A declining equity ratio driven by rising liabilities reduces balance-sheet headroom. For an EPC firm this limits buffer for mobilisation, guarantees and working-capital spikes, increasing dependency on external funding and elevating counterparty and funding risks through the project lifecycle.

Net margin compression

A narrowing net margin suggests rising costs or weaker contract pricing, which erodes the cushion for project overruns and reduces retained earnings for reinvestment. Continued margin pressure would impair cash generation and long-term returns despite healthy gross margins.

Welspun Enterprises Ltd. Business Overview & Revenue Model

Company Description

Welspun Enterprises Limited engages in the engineering, procurement, and construction of infrastructure development projects in India. It operates in two segments, Infrastructure, and Oil and Gas. The company develops and operates roads, water, and urban infrastructure, as well as operates and maintains projects for the transportation sector. It is also involved in the oil and gas exploration activities. The company was formerly known as Welspun Projects Limited and changed its name to Welspun Enterprises Limited in May 2015. Welspun Enterprises Limited was founded in 1976 and is based in Mumbai, India.

How the Company Makes Money

Welspun Enterprises Ltd. generates revenue through multiple streams, including the sale of its textile products, such as bed linens, towels, and related home textile goods. The company also earns income from its infrastructure projects, which may involve contracts for construction and development in various sectors, including roads, water supply, and urban development. Additionally, WELENT benefits from partnerships and joint ventures in the oil and gas industry, where it provides specialized services and products. The company's focus on innovation and sustainability further enhances its market position, allowing it to capture more customers and increase profitability.

Welspun Enterprises Ltd. Financial Statement Overview

Summary

Strong revenue growth and healthy gross margin support the score, but weaker net margin and concerning cash generation (negative free cash flow growth and weak operating cash flow vs. net income) meaningfully reduce it. Balance sheet leverage is moderate (debt-to-equity 0.59) but liabilities have risen as the equity ratio declined.

Income Statement

Welspun Enterprises Ltd. has shown strong revenue growth, particularly in the last year with a 24.8% increase. The gross profit margin is healthy at 22.8%. However, the net profit margin has decreased to 9.0% from the previous year's 10.3%, indicating rising costs or challenges in cost management. The EBIT and EBITDA margins are satisfactory, suggesting efficient core operations.

Balance Sheet

The company maintains a solid equity base with a debt-to-equity ratio of 0.59, indicating moderate leverage. However, the equity ratio has decreased over time, now at 41.9%, pointing towards increased liabilities. Return on equity is reasonable at 12.7%, reflecting decent profitability relative to equity.

Cash Flow

Cash flow management appears challenging with negative free cash flow growth, and an operating cash flow to net income ratio of -0.85. Although the company has managed financing inflows effectively, negative free cash flow and operating cash flow highlight liquidity concerns and potential cash management issues.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	35.17B	35.84B	28.72B	27.58B	13.36B	15.29B
Gross Profit	10.68B	8.16B	9.21B	6.43B	4.19B	3.94B
EBITDA	7.30B	5.22B	6.16B	8.74B	2.07B	3.13B
Net Income	3.47B	3.23B	2.95B	7.23B	1.25B	1.29B
Balance Sheet
Total Assets	63.87B	60.58B	49.49B	51.06B	58.95B	47.88B
Cash, Cash Equivalents and Short-Term Investments	10.97B	11.07B	7.34B	17.81B	3.49B	3.62B
Total Debt	19.41B	14.99B	7.62B	7.64B	25.26B	22.37B
Total Liabilities	35.17B	33.49B	24.59B	27.44B	41.01B	31.03B
Stockholders Equity	26.81B	25.40B	23.23B	23.56B	17.91B	16.84B
Cash Flow
Free Cash Flow	-4.41B	-3.25B	-4.15B	-2.68B	-1.49B	-7.39B
Operating Cash Flow	-4.21B	-2.73B	-3.44B	-1.12B	2.87B	87.40M
Investing Cash Flow	-2.99B	-166.30M	-638.70M	12.89B	-4.87B	-9.18B
Financing Cash Flow	2.97B	5.36B	-4.86B	-2.04B	1.25B	7.53B

Welspun Enterprises Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 497.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:WELENT, the sentiment is Negative. The current price of 497.35 is above the 20-day moving average (MA) of 480.17, above the 50-day MA of 482.47, and below the 200-day MA of 505.91, indicating a bearish trend. The MACD of -7.14 indicates Positive momentum. The RSI at 42.56 is Neutral, neither overbought nor oversold. The STOCH value of 70.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:WELENT.

Welspun Enterprises Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AHLUCONT	68 Neutral	₹48.93B	30.38	―	0.06%	5.56%	-22.59%
JKIL	67 Neutral	₹37.41B	13.34	―	0.67%	13.96%	12.91%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
WELENT	63 Neutral	₹63.84B	74.06	―	0.58%	9.11%	16.30%
PNCINFRA	57 Neutral	₹48.22B	21.04	―	0.23%	-30.54%	-35.13%
QUESS	55 Neutral	₹26.11B	13.93	―	4.70%	-16.43%	-75.38%
SAMMAANCAP	52 Neutral	₹114.77B	9.43	―	―	-4.78%	―

Welspun Enterprises Ltd. Corporate Events

Welspun Enterprises Releases Earnings Call Transcript

Welspun Enterprises Limited has announced the availability of the transcript for its recent earnings call, which discussed the company’s unaudited financial results for the quarter and half-year ending September 30, 2025. This update is part of the company’s compliance with SEBI Listing Regulations, ensuring transparency and accessibility of financial information for stakeholders.