Welspun Enterprises

Profile Highlights

• Water and tunnelling projects: The profile highlights three wastewater projects with contract value INR 9,200 Cr. and a Ghatkopar to Dharavi water-tunnelling project of ~INR 1,989 Cr.
• Long-duration O&M: O&M revenue spans 10 to 15 years; most projects are subcontracted to established regional EPC players.

Key Risks

• Tender and counterparty exposure: The report flags intense competition in tender-based projects and dependence on state governments as counterparties.
• Guidance monitorables: Management’s FY25 revenue expectation was revised downwards to INR 3,700 Cr. including other income; order-book, growth and margin expectations are listed as monitorables.

Standard disclosures

• Research Analyst has served as an officer, director or employee of subject company(ies): No
• We or our associates have received compensation from the subject company(ies) in the past 12 months: No
• We or our associates have managed or co-managed public offering of securities for the subject company(ies) in the past12 months: No
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• We or our associates may have received compensation or other benefits from the subject company(ies) or third party in connection with the research report –No
• We or our associates or Research Analyst or his/her relative's financial interest in the subject company(ies)- No
• Nature of financial interest in subject company, if any –Nil
• We, our associates or Research Analyst have actual/beneficial ownership of 1% or more securities of the subject company (ies) at the end of the month immediately preceding the date of publication of Research Report – No
• Subject company (ies) may have been client during twelve months preceding the date of distribution of the research report-No.
• We or our Associates or Research Analyst are engaged in market making of subject company – No
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Regulatory disclosures

Minerva Capital Research Solutions is an independent investment advisory firm founded by Nishant Gupta(SEBI registration no. INH000018896).

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Rating rationale

Minerva Capital Research Solutions endeavors to provide objective opinions and recommendations. Ratings are assigned to stocks according to their fair value vs current market price and then categorizes them as Buy, Hold, Reduce, Sell. The performance horizon is one year unless specified and fair value is defined as analyst’s valuation for a stock.

• Buy:> 15%
• Hold: -5% to 15%
• Reduce: -15% to -5%
• Sell: <-15%