Welspun Investments and Commercials Limited

Financial Services — Capital Markets · NSE

₹1,822.70−₹95.90 (−5.00%)

DalalBaazaar Score

54 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of Welspun Investments and Commercials Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Welspun Investments and Commercials Limited, a core investment company, engages in the investment and dealing of shares and securities in India. It is also involved in the trading of textile products and commodities.

IndustryCapital Markets

SectorFinancial Services

Employees4

Annual revenue₹5 Cr

How does it make money?

Turns over ₹5 Cr a year. Of every ₹100 of sales, about ₹58 reaches shareholders as profit, with ₹78 left at the operating level before interest, tax and depreciation. Each of its 4 employees supports ₹1.30 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin77.6%

Net margin58.3%

Revenue / employee₹1.30 Cr

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC LIFE INS CO LTD, SBI LIFE INSURANCE CO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

BAJAJ FINANCE LIMITEDP/E 30.2x · ROE 17.8%

HDFC LIFE INS CO LTDP/E 58.4x · ROE 11.3%

SBI LIFE INSURANCE CO LTDP/E 63.9x · ROE 13.7%

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

ROCE0.5%

ROE0.4%

Peer median ROE13.7%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved -32% while net margin moved -19% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-32%

Margin effect-19%

DalalBaazaar Score

54/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 12.1% a year
✗ Profit has declined at 17.9% a year
✗ Profit fell 18.1% in the latest year

Quality vs. Valuation

Company Quality

56/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

29/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

205.5x

3Y Median

119.5x

40 monthly readings · mean 115.7x · range 30.7x–299.4x

Sector Median

58.4x

median of 3 sector peers

⚠️Current valuation is approximately 72% above its 3y median of 119.5x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 252% above the peer median of 58.4x.

vs. its own history

Expensive

119.5x median over 40 months · +72%

vs. sector peers

Expensive

58.4x median of 3 peers · +252%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

205.5x

P/B

0.99x

EV/EBITDA

164.3x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Margins are compressing
EBITDA margin has slipped from 95.7% to 77.6% over 3 years.
Return on capital is falling
ROCE has declined from 3.8% to 0.5% — often a sign of competition or overexpansion.
Valuation above its historical average
At 205.5x the stock trades 72% above its own median of 119.5x.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 18.1 points, from 95.7% to 77.6%.
🟡Profit is decliningFinancial
Net profit is down 45% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 95.7% to 77.6%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The price already assumes success
The stock trades 72% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 76%✓ 77.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✗ 0.4%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Valuation vs its own median of 119.5x✗ 205.5x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 3 neutral · 4 weak

Market Cap

₹668 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

205.5x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.99x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹8.87

Profitable

Profitable on a per-share basis

ROE

0.4%

Weak

Weak capital efficiency

ROCE

0.5%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

136.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-18.1%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹2 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹1,822.7

ROA

0.3%

Weak

Assets generate little profit

Operating Margin

-184.4%

Weak

Thin margins leave little room for error

Net Margin

58.3%

Good

Strong bottom-line conversion

Current Ratio

124.47

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.34

Defensive

Steadier than the market

52W Range Position

53%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

2318.1 / 2187.1

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

6.1

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹8 Cr	₹4 Cr	₹5 Cr	₹5 Cr	-12.1%
EBITDA	₹7 Cr	₹4 Cr	₹5 Cr	₹4 Cr	-18.0%
EBITDA Margin	95.7%	90.9%	93.5%	77.6%	—
PAT (Net Profit)	₹5 Cr	₹3 Cr	₹4 Cr	₹3 Cr	-17.9%
EPS	₹15	₹7.6	₹10.13	₹8.29	-17.9%
ROE	2.9%	0.6%	0.5%	0.5%	—
ROCE	3.8%	0.8%	0.6%	0.5%	—
Free Cash Flow	-₹2 Cr	-₹1 Cr	-₹2 Cr	-₹2 Cr	—

🔴 Revenue has shrunk at 12.1% a year over 3 years.

🔴 EBITDA has shrunk at 18.0% a year over 3 years.

🔴 EBITDA Margin has fallen from 95.7% to 77.6% over 3 years (-18.1 pts).

🔴 PAT (Net Profit) has shrunk at 17.9% a year over 3 years.

🔴 EPS has shrunk at 17.9% a year over 3 years.

🔴 ROE has fallen from 2.9% to 0.5% over 3 years (-2.4 pts).

🔴 ROCE has fallen from 3.8% to 0.5% over 3 years (-3.2 pts).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹753 Cr

Total Liabilities

₹81 Cr

Total Debt

—

Cash & Equivalents

₹5 Cr

Operating Cash Flow

-₹2 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

81.0%

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC LIFE INS CO LTD	58.4x	11.3%
SBI LIFE INSURANCE CO LTD	63.9x	13.7%

Recent News

1 mixed1 negative4 general

Welspun Investments and Commercials Ltd. (WELINV) Share Price near 52-week high as stock trades at Rs 2,457

Univest, 30 Sept

Welspun Investments completes ₹1,365 crore Welspun Corp stake sale

scanx.trade, 26 AugOwnership

🔴Potentially negativePromoter selling or pledging is a signal worth understanding, though the reason is often personal rather than about the business.

Welspun Investments and Commercials Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Welspun Investments and Commercials Upper Circuit Today

Univest, 06 Oct

Welspun Corp stock falls 4% as 2.4% equity changes hands in Rs 1,433-crore block deal; promoters likely...

Moneycontrol.com, 26 Aug

Welspun Corp shares drop 6% after CEO, promoter group likely sell stake worth Rs 1,433 crore via block dea

The Economic Times, 26 AugPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Watch Items

This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

🟢Business QualityStrong13.9/20

🟢Financial HealthStrong17/20

🔴GrowthWeak2.4/20

🟡ProfitabilityModerate8.9/15

🔴ValuationDemanding6.2/15

🟡RiskModerate5.2/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 76%77.6%
✗Return on equity stays above 8%0.4%
✗Valuation vs its own median of 119.5x205.5x today