Welspun Living Climbs Over 4% After Jefferies Initiates ‘Buy’ Coverage

Welspun Living shares witnessed a robust surge on Thursday after the global brokerage firm Jefferies initiated coverage on the stock with a 'buy' rating. The stock of the domestic textile manufacturer jumped over 4% on the bourses following the bullish stance.

At 11:15 am, Welspun Living shares were trading at ₹139.10 price level, up by 3.88% on the National Stock Exchange. The brokerage firm has set a target price of ₹185 on the stock, signalling up to 32% upside from the current market price.

The textile company holds a leading position in textile exports alongside a robust client base. Welspun has long-standing partnerships and well-integrated supply chains with the US retail giants Walmart and Costco. Meanwhile, Welspun Living is also planning to expand into other high-growth markets such as the UK, European Union, Gulf Cooperation Council countries, Japan, Australia and New Zealand.

Jefferies also added that the company can benefit from the prospective free trade agreements (FTAs) between nations.

Welspun Living Share Price Outlook

So far this year, the shares of the company have experienced a double-digit drop of 13% on the NSE. Over the last six months, the decline has been steeper, with shares falling more than 15%.

Currently, the shares are down by more than 34% from their 52-week high price level of ₹212.

While tariff chaos and declining profit levels (recorded in Q4) might raise red flags, Jefferies has maintained an optimistic outlook on the stock. The textile manufacturer has already diversified into new product ranges and is constructing a branded business. The company is expected to deliver an 18% compound annual growth rate (CAGR) in earnings per share (EPS) between FY25 and FY28. Although, things might look tricky for FY26 owing to tariff-related concerns.

"Welspun Living has expanded over time, entering new categories and building a branded play, and should deliver 18% EPS CAGR over FY25-28e, even as FY26 would be muted due to near-term tariff uncertainty," said the brokerage.