Welspun Enterprises Ltd.
ISIN: INE625G01013 • Market Cap: —
The 5-Pillar Quality Audit for Welspun Enterprises Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (20.2%), Return on Capital Employed (15.7%), and equity compounding (11.5%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.71 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (7.2%) and 3Y PAT CAGR (5.7%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 26.34 vs PEG of — and Dividend Yield of 0.5%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 56.1%, backed by 9.6% institutional ownership.
Key Fundamental Strengths
Consistent Market Standing (Small Cap)
Established player in the Construction sector with an overall fundamental quality score of 65/100.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Construction)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Construction space.
Quantitative Strategy Eligibility
Checking WELENT against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 65/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Construction Sector Peer Comparison
Compare WELENT directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Welspun Enterprises Ltd. (WELENT)Current | 65/100 | — | 26.34 | 15.7% | 0.71 | — |
| Larsen & Toubro Ltd. (LT) | 69/100 | ₹5.54 Lakh Cr | 33.42 | 17.9% | 1.12 | View |
| Rail Vikas Nigam Ltd. (RVNL) | 48/100 | ₹46,517 Cr | 51.71 | 10.3% | 0.49 | View |
| NBCC (India) Ltd. (NBCC) | 79/100 | ₹23,571 Cr | 31.74 | 38.8% | 0.00 | View |
| Kalpataru Projects International Ltd. (KPIL) | 76/100 | ₹23,516 Cr | 20.69 | 22.9% | 0.43 | View |
| IRB Infrastructure Developers Ltd. (IRB) | 70/100 | ₹22,912 Cr | 24.01 | 6.0% | 0.96 | View |
Frequently Asked Questions: Welspun Enterprises Ltd.
Q:What is the 5-Pillar Fundamental Score for Welspun Enterprises Ltd. (WELENT)?
Welspun Enterprises Ltd. has a RupeeTools Fundamental Score of 65/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (68/100), Financial Health (70/100), Growth (55/100), Valuation (65/100), and Ownership Quality (68/100).
Q:Is WELENT fundamentally strong for long-term investment?
WELENT currently holds a moderate quality rating of 65/100. While it operates in the Construction sector, investors should monitor its profit margins before initiating long-term positions.
Q:Does WELENT pass the Coffee Can Investing filter?
Yes! WELENT satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does WELENT compare against other Construction peers?
Within India's Construction sector, WELENT trades at a P/E of 26.34 and generates an ROCE of 15.7%. Compare its 5-Pillar score of 65/100 against top sector peers like Larsen & Toubro Ltd. (69/100), Rail Vikas Nigam Ltd. (48/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.