Welspun Living shares rally 11% after Q1 profit jumps 85% YoY. Should you buy, sell, or hold?
In a notable rise, Welspun Living shares gained traction following the announcement of solid Q1FY27 earnings, showcasing an eighty-five percent increase in profit year-on-year and a twenty-four percent boost in revenue. Financial experts, including those from Motilal Oswal and JM Financial, have reiterated buy recommendations, forecasting ongoing revenue and margin improvements. Significant…
Welspun Living's shares experienced an 11% surge, reaching Rs 176.70 following a strong Q1FY27 performance. The home-textile company reported an 85% YoY jump in profit and a 24% YoY revenue increase, reaching Rs 2,795 crore. Operating margins improved, with EBITDA at Rs 354 crore and a 12.5% margin, a 140 basis points increase YoY.
Motilal Oswal Financial Services maintained its 'Buy' rating on the stock, with a target price of Rs 215, indicating further upside. The home-textile business continued to drive growth, with exports up 28.1% YoY, supported by demand in key markets. The company's US pillow business saw a 2.3-fold increase in Q1 and is expected to double revenue in FY27.
JM Financial also rated Welspun Living a 'Buy', noting strong EBITDA and a recovery in core margins. Both brokerages expect double-digit revenue growth over the next three years, citing factors like capacity utilisation, cost efficiencies, and diversified growth.
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