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COMPLETE ANALYSIS OF WELSPUN INDIA WITH SECTOR OVERVIEWabout company • Welspun India Ltd (WIL), part of the $2.7 billion Welspun Group, is a global leader in Home Textiles, supplying to marquee global retail and hospitality brands. Our state-of-the art manufacturing facilities in India produce globally benchmarked products, driven by our differentiation strategy based on Branding, Innovation and Sustainability • export about 94% of our home textile products, and over 65% of our production to the US, 25% to Europe and the rest to the Middle East, Australia and Japan. global scenario- Global textile and apparel trade stood at $839 billion which has grown at a CAGR of 4% since 2005. Apparel was the most traded T&A category across the globe with a share of 58% of the total T&A trade. Fabric was second to apparel and accounted for 19% of the total T&A trade. The global trade of T&A is expected to grow from the current $839 billion to $1,000 billion in 2025, while growing at a promising rate of over 3% when compounded annually. Indian textile industry- • Indian domestic textile and apparel market is estimated at $75 billion in FY21. The market fell 30% from $106 billion in FY20. The market is expected to recover and grow at 10% CAGR from FY20 to reach $190 billion by FY26.(the fall will expected to get recovered in upcoming 3 yrs) • India is the second largest cotton producing country(China ranks first), growing 23% of the world’s cotton. It also has the largest area under cotton cultivation. As such, India’s textile industry is largely cotton-based. Cotton yarn/fabrics/made-ups and handloom products account for 40% of India’s total textiles export as of June 2021.Towels, bed sheets and other home linen are some of the most exported Indian cotton makeups. China, Bangladesh, and Vietnam are the top three importers of Indian cotton. Despite the difficulties posed by the pandemic, India’s cotton exports rose in volume by127% and in value by 106 %in April December 2020 compared to the same period in 2019. Indian cotton and cotton products have a price advantage over those produced in the US, Brazil, and Australia, which increases their export potential. Home Textile - The global home textile market was valued at $123.2 billion in 2019 and is expected to reach a value of $151.8 billion by 2025, registering a CAGR of 3.5% during the period (2019-2025). The US and Europe are the biggest consumers, receiving 60% of the home textiles imports, with countries like India, China, and Pakistan being the key suppliers. The industry is witnessing steady growth, driven by rising consumer spending on home renovation and fashionable household furnishing. Home textile products have surfaced as one of the most attractive and fashion sensitive segments in the overall textile market. The market has seen considerable growth during the past few years. India’s Presence in Key Global Home Textile Markets- • India commands a significant share in the global cotton home textile market. • According to the Office of Textiles and Apparels (OTEXA) US, in CY20. India supplied about 42% of the cotton towels imported to the US, a share that has grown significantly from 30% in CY09. In the cotton sheets segment, the country supplied about 52% (CY20) of the total import to the US, increasing from 27% (CY09). • The Indian home textile sector is reaping the benefits of market share gains in export markets such as the US and Europe with top competitors such China losing market share in the past two years. India’s share in bed linen export to the US has improved to 58% from ~50% in CY2019; while in terry towel exports, it has improved to 44% from 39% in CY2019. This along with sustained strong demand due to higher focus on home hygiene in the pandemic environment provided home textile companies strong growth levers. Top players such as WIL and HSL have expanded the capacities for bed linen/terry towel sensing to fulfil strong demand coming in from key markets because of higher spends on hygiene products and customers looking at India as an alternate supply base. FY21 Key Business Highlights and Operational Data of Welspun India- • The strong emergence of homebody economy structural shift in consumers spending has helped the overall growth for home products. n FY21, the Company delivered highest ever annual revenues with growth of 8% YoY. This has resulted in the highest ever bed linen, bath linen, and rugs and carpet sales volume in a year. • Innovation is an integral part of Welspun’s DNA and the foundation on which our customer-centric solutions are built. Welspun has always focused on consumers’ needs and catered to them with innovations like Nanocore technology, industry-defining, multi-level traceability process Wel-Trak™ that tracks finished products back to the raw material, as well as HygroCotton technology. r Innovation product sales during the year was `19,287 million, registering a growth of 6% YoY and contributed 29% to the topliner. • The pandemic has accelerated online spend significantly beyond prior years and more consumers have begun shopping online in greater numbers and frequency. Consumers spent $861.12 billion online with U.S. merchants in 2020, up an incredible 44.0% yoy, according to Digital Commerce 360 estimates. • China’s share in the US market continues to be under pressure. As per OTEXA data, in the last three years we have seen India’s market share in Towel & Bed Sheets increase by 4% and reached to 42% and 53% respectively. Walmart has recently announced that it will triple its sourcing of goods from India to $10 billion each year by 2027. • The Company is taking rapid strides in the B2C business through licensed brands which will enable to deepen the connect with consumers across markets and aspirational categories. Basic financial check- • For FY21, Revenue from Operations was `73,402 million vs. `67,411 million in FY20, 8.9% up. • Total Income stood at `74,080 million compared to `68,362 million last year, registering a YoY growth of 8.4%; EBITDA at `14,198 million as against `13,098 million in FY20 saw a YoY increase of 8.4%. PAT for the year was `5,397 million, which is around 1.06x that of previous year’s PAT of `5,074 million, and our Net Worth stood at `36,447 million. I am happy to report that Net Debt of core business has reduced by 46% in the last three years along with a continuous improvement in ROCE. FY21 also saw a significant 2.8x rise in Free Cash Flow (FCF) and continuous pay-out through dividend/ buyback. Key points – • Company’s EPS is increasing, i.e. company is making money. On the top of that company has good amount of cash flow in hand. • Company's surplus is increasing yoy and their capital expenditure is giving good results which is reflecting on their balance sheet. • Most important point is company is reducing their boring and constantly paying the debt. Net debt as on March 31, 2021 stands at `23,327 million after reducing the cash and bank balance and liquid investment. At the end of FY20, the net debt was `29,618 million. The company’s current debt stands at Rs. 2,300 crore, which is expected to reduce to Rs. 2,200 crore by the end of FY2022. Management targets to achieve EBIDTA of around Rs. 1,600 crore in FY2022. The company will utilize Rs. 600 crore of EBIDTA for capital expenditure, Rs. 200 crore for buyback, and retain Rs. 180 crore-200 crore of cash on books. Further, the company plans to utilize Rs. 600 crore to pay-off debt. With double-digit growth in revenue and sustained improvement in profitability, WIL aims to become net cash positive by FY2025 which reflects the management is in good hands. • Growth in revenue • Increase in profitability • Cost of material increased due to substantial increase in sales of products • Company employee cost also increased, despite of covid no dent in employment • Company has decreased their investments in subsidiary company. ( we can see some fall in other income ) Increase in EBITDA • Increase in PAT • ROCE - 13.8 %( sufficient for small cap company) • ROE – 16.3% (enough for 15% CAGR targets ) • No dent in operating and net profit margins financials of companies are clean and company is growing and scaling up slowly and constantly. There is no massive spike in any aspects and in terms of margins, profitability or revenues. Company’s board of management is well experienced to scale up and handling the company operations. Even in pandemic situation there is no massive dent in revenues and profits which shows the capability and capacity to expand into mid-large caps and target bigger markets. Key risks for company - • After rebounding to an estimated 5.5% in 2021, global growth is expected to decelerate markedly in 2022 - to 4.1 %, reflecting continued COVID-19 flare-ups. About 95% of WIL’s revenue comes from export markets such as the US and Europe. Hence, any adverse currency movement or spike in inflation would act as a key risk to revenue growth. • Due to inflation spike, commodity prices are going to go up. In that case, company’s expenditure on raw material cost will increase. Any significant increase in global cotton prices would act as a key risk to profitability. • As many incentives given by government, during this consolidation period if any compotator company gets a slight opportunity or somewhere WIL gets lagged in process other will take lead and position themselves in this field. TECHNICAL ANALYSIS- for past 2 days buying in stock happened with volume. stock is almost corrected 43% from its all time high. due to global scenario, with this high volatility if stock falls again at level of 95 to 100 and giving bounce back, one can invest half capital in this and keep other half if double bottom fails to accumulate more in buy on dips at level of 75 to 80. this study is for education purpose only. invest your hard earned money after consulting with your financial advisor.
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by ameyagawade9
ARE WE STABILIZING AND HEADING TOWARDS RECOVERYWe have seen the pre COVID era when market was moving at a regular pace. MIDCAP was recovering after the fall of 2017. But suddenly as the dawn of 2020 we witnessed a huge crash. As the crash was so sudden that is why most of the investors got panicked and we have seen a devastating sell-off. Though the fall was gigantic but the recovery was even bigger. In just a period of six months we not only recovered but also saw an unusual breakout is almost every stock. Market continued to make new highs with very small corrections. But suddenly after mid of October 2021 the correction tends to get deeper and deeper. Huge sell offs by the FIIs have made the retail investors anxious. But this is not new. FIIs were already complaining about the high market prices of most of the stocks. Many of us would blame the WAR, elections and FED Rate hikes. But the matter of fact is that we were already witnessing this sell of since six months. And unsustainability from the highs even after the Indian Budget'22 just confirmed the forthcoming fall. I do believe the correction was significant which was also a buy opportunity for long term investors. Maybe we are heading towards recovery as many of the stocks of Indian market have almost tested their levels of January/October 2020
NSE:CNXMIDCAPLong
by vedanggam
#StockMarket #StockIdeas #StocktoWatch #StockToBuy #positionalMAITHAN ALLOYS LTD good support at 930 levels, trading in a range for almost 9months now. Would be a safe bet to enter if it breaks 1250/60 levels Keep positional view hold for 6months to 2years Stock has the capability to 2x-4x from here very short term target will be around 1310 / 1400 For the short term keep SL of 1050 and for long term keep SL of 1000/950 levels Alloys supplies from Ukraine and the Russian region are stopped completely. India alloy companies are benefitting. Prices going up in international markets. Maithan Alloys has made 300 crs net profit in last quarter, they used to earn 250 crs average net profit annually earlier. Maithan Alloys will have above 1000 crs cash on the Balance sheet by FY end. Market Cap is 3300 crs Note: Above levels are for education purposes only. Use your own analysis before taking any trade.
BSE:MAITHANALLLong
by Jordan_n-
HCL TECH BULLISHExpecting bullishness in #HCL_TECH in the short term untill it breaks and open & close candle formed below 1060 levels.At the same time Indian IT index took support around first level retracement area and its moving upside.Even though all looking good still Ukraine-Russia crisis hearing in our ears,so we should act according to global cues(Taking decision according to global cues is only for swing and short term trades).So as i always say whatever we do,must follow risk reward and money management. For longterm its just a beauty to add on dips. Have a good trade.
NSE:HCLTECHLong
by trade_withpriceaction
INVESTMENT IDEA Kalyani SteelsThis post is not for traders who want to trade with stop loss. This is for long term investors who wants to buy fundamentally strong beaten down names at a good entry points. NSE:KSL Kalyani Steels Ltd, a part of Kalyani Group, is primarily engaged in the business of manufacture and sale of Iron and Steel Products. The product portfolio of the Co consists of camshaft, connecting rods, gears, transmission shafts, axle beams, steering knuckles etc. for Automotive Industry, round cast for Seamless Tube Industry, rolled bars for Engineering Application etc. Why is it a good buy right now? (Excerpts from Rating Update of Kalyani Steels by CARE Ratings) 1. Industry outlook India is the second-largest crude steel producer in the world. India’s crude steel production fell by 5.59% and finished steel production was flat at 95.12 MT in FY21 against 102.62 MT in FY20. Domestic steel demand was impacted by a slowdown in manufacturing activities during H1FY21 due to Covid-19 pandemic. However, post lockdown, the global commodity markets witnessed a sharp rebound with a continuous increase in prices. While the demand recovery, especially in China and other economies, was on the back of substantial government stimulus, the lockdowns and restrictions caused significant supply-side headwinds in terms of difficulty in procurement and movement of key raw materials resulting in reduced production across steel mills. The double whammy effect resulted in one of the sharpest and perhaps the fastest recoveries in the global steel prices, which was considered beyond the market's expectation. CARE Ratings expects the domestic steel demand to grow at a compounded annual growth rate (CAGR) of about 7.5% during the next 2-3 years. CARE Ratings further expects net sales realization to remain healthy. As far as volumes growth is concerned, demand improvement and the low base effect of FY21 is likely to help improve the volumes of the domestic players. The solvency ratios of steel companies are expected to improve on account of accretion to net worth and healthy cash accruals along with continuous reduction in debt levels. 2. Strong promoter group coupled with long track record in iron & steel industry KSL is a part of the Kalyani group and is spearheaded by Mr B.N Kalyani in the strength of Chairman. He is also the Chairman and Managing Director (CMD) of Bharat Forge Limited. The Kalyani group, established in mid 1960s, has wide capabilities across varied industries including Engineering, Automotive, Industrial, Renewable Energy, Urban Infrastructure and Specialty Chemicals. In a span of more than four decades, KSL has grown from being a primary iron and steel manufacturer to a preferred steel supplier for engineering, auto, seamless tubes, etc., companies mainly catering to forging industry serving the auto and allied sectors. The promoters are supported by a team of professionals including, Mr RK Goyal (MD) and Mr Balmukand Maheshwari (CFO) who are associated with KSL since more than eight years. 3. Established selling arrangements KSL was promoted as backward integration unit of the Kalyani group from which majority of the requirements for the group companies is met through KSL. Moreover, long-standing relationship with major OEMs along with approved vendor status continues to garner KSL with repeat orders. The Kalyani group companies accounted for around 53% of the total revenue in FY21 (refers to the period April 1 to March 31). 4. Arrangement with suppliers for procurement of raw material albeit absence of long-term contracts continues KSL has diversified raw material procurement source wherein raw materials are procured both from the domestic and overseas market. The key raw materials used by KSL include coke/coke fines, iron ore/iron ore fines and ferro alloys. However, majority of the raw materials have been sourced from few suppliers representing concentration risk; but the risk is partially mitigated as the company takes quotes from various suppliers before placing orders. Furthermore, KSL has not entered into any long-term contracts with the suppliers. 5. Robust capital structure and comfortable debt coverage metrics Capital structure of KSL remained robust with 0.02 (nil) debt to equity and overall gearing (including LC backed creditors) of 0.22x (0.19x) as on March 31, 2021 (2020). The overall gearing marginally increased on account of ECB taken by the company during FY21 to fund the projected capital expenditure of Rs.211 crore. As on March 31, 2021, the company has long-term debt of Rs.18.37 crore. The debt is projected to increase further, however, the overall gearing is expected to remain comfortable. The fund-based working capital utilization is also minimal. The net worth of the company stood at Rs.1,153.42 crore as on March 31, 2021, as against Rs.962.71 crore as on March 31, 2020. The gearing when adjusted to investments in group companies also stayed strong (adjusted overall gearing of 0.25x) as on March 31, 2021. PBILDT interest coverage and total debt/gross cash accrual remained comfortable at 43.24x and 1.11x in FY21 from 10.08x and 1.12x in FY20, respectively. 6. Improvement of Profitability Margin KSL improved its profitability margin majorly on account of improvement in gross margins. The company’s PBILDT (PAT) margins have remained in between 14.90% and 24.04% (8.2% and 15.59%) over the past five fiscal years through FY21. KSL’s PBILDT margin improved to 24.04% in FY21 from 18.93% in FY20 majorly on account of lower raw material and consumable costs. The company is undertaking a backward integration project amounting to Rs.211 crore, to set up a new 200,000 TPA coke oven plant and 17-MW waste heat power plant. The project is expected to be commissioned by September 2022 which shall lead to reduction in cost of production with further improvement in profitability. 7. Average ROE (Return on Equity) for last 3, 5 and 10 years are 16%, 17% and 16% respectively (all above 15%) 8. TTM (Trailing 12 months) Sales and Profit growth at 51% and 82% 9. Dividend Yield at 2.57% (consistent dividend payer since 2010) 10. Debt to equity at 0.18 (less than 1 is good), Interest Coverage at 27 (greater than 3 is good), Current ratio at 2.11 (greater than 1.5 is good), FCF to CFO at 64% (company won’t have to raise debt for expansion) 11. Current PE at 5.08 is less than 10-year average PE of 7.06 12. It can be seen that the stock price is trading near a good demand zone which is a confluence of strong support and resistances. If anyone consider it for buying, put only 3% of your capital right now, buy with another 3% if it falls another 40% and invest the rest 4% (don't invest more than 10% of your entire capital in one stock) when the share closes at a 52 week high.
NSE:KSLLong
by akashbothra
Apollo Hospitals Currently trading at 20% discount from all time High levels. Apollo Hospitals (TF=W) 1. Rising Trendline 2. Taking Support at 50 DEMA Apollo Hospitals (TF=D) 1. Constantly making support at Rising Trendline 2. Consolidation and Accumulation going on at 200 DEMA and Rising Trendline. 3. Less volumes during Accumulation Phase 4. Has given the Breakout with good volumes 5. Also, Upper band of Bollinger band has been challenged (candle of 28 Feb 22) 6. Can be added after retesting for the first target of 5070 and further more.
NSE:APOLLOHOSPLong
by deeptinseth
1
My View on HDFC Life for coming weeks/monthsThis is proof that when the bear strikes, fundamentals of the stock become irrelevant. Although please don't mistake me for a bear, I'm just a greedy bull looking for cheaper prices. Shown in the chart is a classic example of how early institutional investors dump on retail investors. As you can see in the chart, the entire year of 2021 was a distribution range, and once we broke-down from it, there was an accelerated sell-off. Key notes from the chart : 1) Trend shift has been confirmed as market structure has officially changed to lower highs and lower lows on the weekly/monthly timeframe. 2) This doesn't mean we go short now, because we're at strong support and momentum indicators are extremely oversold. 3) Looking for potential lower highs to get into short positions for lower lows (potential positional trade). 4) We could also potentially trend up from here, re-test current lows, and after some accumulation ultimate trend higher. Possible paths have been shown (just ideas, doesn't have to play out like this). Regardless, currently the trend is down, and unless that changes, I will be looking for lower prices. Anything below 500 is a steal from an investment perspective because the stock's fundamentals haven't changed. Good Luck. Note: This is not Financial Advice. This is for educational/entertainment purposes only.
NSE:HDFCLIFEShort
by apratimbanerjee08
GE POWER INDIA LIMITED | Chart Analysis | OpportunityMultiyear Breakdown is found in GE POWER INDIA LIMITED . In Equity market I only understand the fact to make money that when ever price comes down more than expectation just buy it & whenever price move up more than expectation book the profits. Technical View - NA Fundamental View - NA Risk - Business can shut down Reward - Business will re-structured & give exponential return. Disclaimer : I am initiating long position from past 2-3 trading sessions just by trusting on the business model & management of the company not the basis of fundamental & technical perspective. Happy to receive your views on this. Thank you & Best Regards. Vishal Malviya
NSE:GEPILLong
by r_a_e_e_s