Welspun India Share Soars 4% Amid Share Buyback Proposal

Welspun India will discuss share buybacks and dividends at its April 27 meeting.

On April 25, Welspun India shares surged 4% in the early morning trade after the company mentioned that it would deliberate a share buyback proposal in its future board meeting.

In addition to financial results for the quarter and fiscal year that ended March 31, 2023, the Board of Directors (BOD) will mutually consider this at its meeting on April 27. It will include a share buyback strategy and recommendation of dividends for the financial year ended March 31, 2023, the company told stock exchanges.

At 9:42 am, Welspun India shares traded 3.4% higher at Rs 85.9 on the NSE. The stock has rallied 30% in the last month, rising over 200% in the past three years.

According to Axis Securities, the company and home textile sector suffer weak demand for the other two or three quarters, though several structural modifications and optionality can augment their prospects. The brokerage firm raised its rating on the stock after the December quarter incomes to “hold” from “sell”.

Several opportunities are also possible, the prevalent being the UK and Eurozone free-trade agreement.

The company sees profitability improving amid a drop in cotton prices, and ocean freights’ normalisation. It has dropped the net debt level to Rs 1,909 crore and boards to deleverage further.

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