BAV Group 8

Abhishek Ganorkar 18PGP004

Dipan Sen 18PGP050
Vatsal Kakadiya 18PGP071
Mayank Lavania 18PGP096
Mayank Pamnani 18PGP097
 `
RECOMMENDATION
114.45

SELL
RECOMMENDATION
41.3 %
DOWNSIDE

76.17
Welspun Corp Story Introduction Fin Performance Revenue Breakup

ABOUT THE COMPANY

Second Based It operates a
largest in Mumbai,  1.65 mtpa Operates under
c
manufacturer Maharashtra. plant in six divisions
of large Anjar,
diameter Gujarat,
pipes in the
world
Incorporated Bags first Welspun Energy
in 1995 as international commissions
Welspun IPO order worth 15MW solar
Gujarat Stahl Rs.62 cr project in
Rohren Ltd 1995 2002 2002 Rajasthan 2013
Welspun Corp Story Introduction Fin Performance Revenue Breakup
Second largest manufacturer of large
diameter pipes in the world

ABOUT THE COMPANY

03

₹ 90.8 Bn 2.55 MTPA

Total revenue as on Total Installed
March 31, 2019 Capacity of

01
Amongst the top 3
SAW Pipe
Company in the > 25000 50
World Client Countries
No of Employees
02
24+ Years of Experience
Welspun Corp Story Introduction Fin Performance Revenue Breakup

ABOUT THE COMPANY

Welspun Corp Story Introduction Fin Performance Revenue Breakup

ABOUT THE COMPANY

76% 24%
Welded Pipes Plates and Coil
 Industry Scenario Porter’s 5 Forces Financial Graphs

UNFAVOURABLE SCENARIO
Economic slowdown could affect
the Company’s order book
position, affecting capacity
utilization, sales and profitability

Excess capacity and aggressive Relatively low capacity

competition in India utilization in the Indian mills
01
There is always a risk on steel
pricing as steel is procured High risk of investment loss
based on bidding thereby
incase of slight variation in
effecting the end pricing of pipes
02 product specifications by client
Industry average ROCE is 15% ;
for Welspun it is 7.37% for
2019; 5 year average 6.77%
03
 Company Scenario Porter’s 5 Forces Financial Graphs

UNFAVOURABLE SCENARIO
RIVALRY WITHIN THE INDUSTRY
• Very few competitors with large market share
• Prone to disruptions in the supply-demand balance
• Competitive actions to gain higher position

THREAT OF NEW
BARGAINING POWER
ENTRANTS
OF SUPPLIERS
• Economies of scale difficult to
• Suppliers fairly standardized with
achieve
almost similar costs
• Capital requirements are high
• Suppliers do not contend with
• Entry barrier is high
other products
• Minimal threat for forward
integration
BARGAINING POWER
THREAT OF
OF CUSTOMERS
SUBSTITUTES
• Product differentiation is high
Very few substitutes available of high
• Local choice to buyers
quality at same pricing
• Quality of product is very stringent
Company Scenario Porter’s 5 Forces Financial Graphs

UNFAVOURABLE SCENARIO
 114.45

VALUATION
SELL
RECOMMENDATION
29.7 %
DOWNSIDE

76.17