Welspun Living: Axis Securities selects the stock as its 'pick of the week', sees 14% upside – 3 key reasons why
Welspun Living as its 'top pick of the week'. This is on the back of the promising long-term potential in the textile sector, raw material price correction, improvement in margins, developing branded presence and macroeconomic tailwinds. The brokerage has a ‘buy’ call on the stock with a target price of ₹175, implying a potential upside of over 14 percent.
Welspun Living Ltd is a part of the $3 billion Welspun Group. The company offers home textile products such as bed & bath linen, advanced/technical textiles products, and flooring solutions. With a distribution network in over 50 countries, Welspun is the largest exporter of home textile products from India.
The company is vertically integrated across the entire value chain from procuring cotton to dispatching end-products to consumers and has in-house infrastructure. Welspun has top-of-the-line home textile manufacturing facilities in Vapi and Anjar (Gujarat, India) and a flooring facility in Telangana (India). The stock has given multibagger returns in the last 1 year, surging over 110 percent and has jumped over 87 percent in 2023.
Just in January 2024 so far, the stock has added over 6 percent. In 2023, the stock gave positive returns in 7 of the 12 months. It gained the most in April, up around 38 percent, and shed the most in January, down 13 percent.
It also gave double-digit positive returns in October 2023, up 24 percent, in July, up 19 percent and in August, up 14 percent. Currently trading at ₹153, the stock is over 10 percent away from its 52-week high of ₹170.25, hit on November 16, 2023. Meanwhile, it has rallied 174 percent from its 52-week low of ₹62.20, hit on March 29, 2023.
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