1. What Sparked Welspun Living’s 13% Rally Today?
On May 7, 2025, shares of Welspun Living Ltd. (NSE: WELSPUNLIV) surged 13.31% to close at ₹136.99. The rally was fueled by renewed optimism following progress on the India-UK Free Trade Agreement (FTA), which proposes zero import duties on Indian textile exports. This deal significantly boosts competitiveness for Indian textile players like Welspun in the lucrative UK market (Business Today).
Adding momentum to the rally, investors also responded to the company’s long-term strategic roadmap, including product expansion and improved export visibility.
2. What Does Welspun Living Do?
Welspun Living is one of India’s largest home textile manufacturers, well-known globally for its towels, bed linens, rugs, and flooring solutions. The company has two core verticals:
- Home Textiles: Including towels, bed sheets, pillows, and fashion bedding.
- Flooring: Comprising carpet tiles, area rugs, and artificial grass.
It operates state-of-the-art manufacturing units and exports to over 50 countries. Key global clients include Walmart, Costco, Bed Bath & Beyond, and Target, making Welspun a preferred private-label supplier.
3. How Are the Financials Stacking Up?
According to Screener.in:
- Market Cap: ₹13,298 crore
- Revenue (TTM): ₹10,474 crore
- Net Profit (TTM): ₹642 crore
- ROE: 12.1%
- ROCE: 12.7%
- Debt-to-Equity Ratio: 0.59
- Promoter Holding: 65.78%
Welspun maintains a healthy balance sheet with improving margins and controlled leverage. Profit growth has consistently outpaced revenue growth, indicating operational efficiency.
4. Peer Comparison of Welspun Living
| Company Name | Market Cap (₹ Cr) | P/E Ratio | ROE (%) | ROCE (%) | Dividend Yield (%) |
|---|---|---|---|---|---|
| Welspun Living Ltd | 13,112 | 20.6 | 15.6 | 16.1 | 0.07 |
| Vardhman Textiles | 13,663 | 15.5 | 11.2 | 11.2 | 0.85 |
| Arvind Ltd | 9,819 | 32.6 | 13.1 | 13.1 | 1.00 |
| Garware Technical Fibres | 8,761 | 38.1 | 23.1 | 23.1 | 0.07 |
| Indo Count Industries | 6,311 | 19.3 | 18.3 | 18.3 | 0.69 |
| Jindal Worldwide | 6,113 | 74.5 | 9.8 | 9.8 | 0.07 |
| Raymond Lifestyle | 5,952 | 41.0 | 15.6 | 15.6 | 0.00 |
| S P Apparels | 2,128 | 23.0 | 13.5 | 13.5 | 0.00 |
| Siyaram Silk Mills | 3,086 | 15.8 | 20.5 | 20.5 | 1.62 |
| Nitin Spinners | 2,127 | 12.6 | 11.6 | 11.6 | 0.66 |
Key Insights:
- Welspun Living Ltd maintains a strong position with a healthy ROE and ROCE, indicating efficient use of capital.
- Garware Technical Fibres leads in profitability metrics but trades at a higher P/E ratio, suggesting premium valuation.
- Jindal Worldwide has a notably high P/E ratio, which may indicate overvaluation relative to its earnings.
- Siyaram Silk Mills offers a higher dividend yield, appealing to income-focused investors.
This comparison provides a snapshot of how Welspun Living Ltd. stands relative to its peers in terms of market valuation and financial performance. For a more detailed analysis, consider reviewing each company’s financial statements and market position.
We have also done a blog on Vardhman Textiles, follow the link to know more!
5. What Do Valuation Metrics Say?
Welspun Living trades at a:
- P/E Ratio: 19.38
- P/B Ratio: 2.78
- Dividend Yield: 0.08%
These figures suggest moderate valuations, especially in the context of India’s booming textile exports and lower cost structures compared to global peers.
5. How Are Analysts Reacting?
Brokerages are optimistic post-FTA developments. Many see Welspun’s increasing export share, product innovation, and strong client retention as key drivers. Analysts expect:
- Mid-teens revenue growth over FY25–27
- Stable EBITDA margins in the range of 13–15%
- Improved free cash flow due to working capital optimization
Welspun has guided for ₹17,000 crore in topline by FY27, driven by premium bedding and new categories like wellness textiles.
6. What’s Happening in the Textile Sector?
The Indian textile sector has regained momentum post-pandemic due to:
- Export demand recovery
- Government PLI schemes
- FTA negotiations with the UK, EU, and Australia
Mid- and large-cap textile stocks like KPR Mill, Trident, and Sangam India also witnessed gains on May 7, reflecting a broad sectoral re-rating.v
7. What Are Welspun’s Future Plans?
The company aims to:
- Expand global footprint through B2B and B2C channels
- Increase automation in spinning and weaving units
- Focus on sustainability and circular textile practices
It also plans to launch a digital-first brand in the wellness and bedding segment, targeting millennial buyers in the U.S. and U.K. markets.
8. Final Takeaway: Should You Track Welspun Living?
Welspun’s surge is backed by both macro (FTA, export tailwinds) and micro (profit growth, client stickiness) catalysts. While short-term volatility remains, the long-term thesis of a scalable, globally relevant textile brand remains intact.
Note: This blog is for educational purposes only and should not be considered investment advice.
Sources: Screener.in, Business Today, Marketscreener, NSE India, Economic Times
