Archive · 5 Jun 2025
Jefferies Initiates Coverage on Welspun Living with a Buy Rating
Imagine a company that makes things for your home, like towels, and sells them all over the world.
A big company that studies other businesses thinks this company, called Welspun Living, is doing well.
They believe the company will grow a lot in the next few years, even though it might face some challenges, like possible extra costs from tariffs.
The company sells a lot of its products to big stores in America and is trying to sell more in other places, too.
The experts think the company is smart because it's also making new products.
They think the company will make more money in the coming years.
They also have a strong financial standing.
Jefferies initiated coverage of Welspun Living with a 'Buy' rating and a price target of ₹185 per share.
Welspun Living is a leading home textile exporter, with the US as its largest market.
The company has long-term partnerships with major retailers such as Walmart and Costco.
Jefferies anticipates potential benefits from India's free trade agreements (FTAs).
Near-term risks include tariff uncertainties and potential impacts on revenue and margins.
- Who
- Jefferies initiated coverage on Welspun Living Ltd.
- What
- Jefferies has given a ‘Buy’ rating to Welspun Living Ltd.
- When
- The brokerage expects a subdued first half of FY26 but recovery in the second half.
- Where
- The US is its largest market, and is expanding its footprint in other regions, including the UK, EU, and GCC.
- Why
- Jefferies believes Welspun could benefit from India's FTAs and expects strong growth.
Positives
Risks
Tariff Impacts
Positives
India currently faces a lower tariff rate of 10%.
Risks
Lack of clarity on tariffs may lead to order delays; retailers may pass costs to Welspun.
Earnings Growth
Positives
Welspun is expected to deliver an 18% compounded annual growth rate (CAGR) in earnings per share (EPS) between FY25 and FY28.
Risks
FY26 is expected to be muted due to tariff-related pressures.
- Company Status
- India's leading home textile exporter
- US market revenue percentage
- Over 60%
- Key Clients
- Walmart and Costco
- Projected EPS growth
- 18% CAGR (FY25-FY28)
- Projected EBITDA growth
- 12% CAGR (FY2025–FY2028)
- Price target per share
- ₹185
- Closing share price on Wednesday
- ₹134