Indian towels-maker Welspun Living's Q1 profit rises on strong urban demand
India's Welspun Living posted a rise in first-quarter profit on Wednesday, on strong demand for its towels and bed sheets from urban consumers.
The company's profit rose 15% year-on-year to 1.86 billion rupees ($22.2 million) in the three months to June 30.
Its revenue climbed 16% to 25.36 billion rupees, the company said.
KEY CONTEXT
Strong urban demand has helped home linen and textiles-makers in the last fiscal year ended March. This extended into the June-quarter. Softer raw material prices also helped companies.
Analysts expect demand for Indian textiles to get a boost after India and the UK sign a trade agreement.
PEER COMPARISON
Valuation Estimates (next 12 Analysts' sentiment
(next 12 months)
months)
RIC PE EV/EBI Revenue Profit Mean # of Stock to Div
TDA growth (%) growth rating* analysts price yield
(%) target** (%)
Welspun Living 18.65 10.23 12.79 24.73 Buy 9 0.93 0.06
Arvind 18.77 9.84 15.93 41.17 Strong 6 0.83 1.00
Buy
KPR Mill 27.87 18.95 11.30 20.00 Buy 7 0.93 0.59
Vardhman Textiles 13.91 10.73 9.02 44.29 Buy 4 1.11 0.66
* Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT
APRIL-JUNE STOCK PERFORMANCE
-- All data from LSEG
-- $1 = 83.7050 Indian rupees
