Welspun India falls on report of potential bankruptcy filing by customer

Welspun Living

06/01/2023 09:29

** Shares of Welspun India  WLSP.NS  fall as much as 3.92%,
the steepest intraday decline in two weeks, to 71.10 rupees
apiece
    ** Trading volume on the home textile products' maker's
stock is 961,808 shares as of 2:28 p.m. IST, 0.9x the 30-day avg
of about 1 mln shares
    ** The slide comes after a report that U.S. firm Bed Bath &
Beyond, one of Welspun India's major customers, is preparing for
bankruptcy
    ** Welspun India did not immediately respond to queries on
revenue contribution from Bed Bath & Beyond
    ** "Walmart  WMT.N  is Welspun India's biggest customer,
accounting for roughly over 50-60% of home textiles revenue,
said Vikas Jain, analyst at Equirus Securities
    ** "If Bed Bath & Beyond files for bankruptcy in the U.S.,
it would only have a short-term impact on Welspun India" 
    ** Of the six analysts tracking the company, three maintain
"buy", one suggests "sell" and two recommend "hold"; the median
TP is 83.50 rupees
    ($1 = 82.5750 Indian rupees)
 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; Mobile:
+919769003463))