韦尔纺生活有限公司（WL）：家用纺织品领域的领导者及未来发展

2026E2027E103,510116,870130,40111,947.415,702.518,212.25.868.7522.2x14.9x 2028E10.6712.2x Kunal Shah * | Equity Analyst+91 (22) 4224 6111 | kshah5@jefferies.comVivek Maheshwari * | Equity Analyst91 22 4224 6135 | vmaheshwari@jefferies.com The Long View: Welspun Living LtdInvestment Thesis / Where We DifferWhile ongoing tariff headwinds create a near-term dent on growth andprofitability, it can also unlock long-term opportunities to gain market shareand benefit from customers looking to diversify from China. Potentialfree trade agreements with the European Union and UK (already finalised)should enable Welspun Living to expand into otherwise under-indexedmarkets where it was disadvantaged historically due to higher tariffs vs.competing countries. Bilateral trade agreement with the US, if executed, willallow Welspun to further strengthen its core markets while venturing intonew categories such as flooring, fashion towels etc.Base Case,INR185, +42%FY25-28e revenue Cagr: 7%FY25-28e EPS Cagr: 18%Target multiple: 20xSustainability MattersKey metrics•GHG Emissions•Sustainable sourcing•Water intensity and zero hazardous waste to landfillWelspun Targets•Share of renewable energy is up to 30% in FY25 - target is to reach 100% by 2030•76% cotton sourced from sustainable sources - target is to reach 100% by 2030•Target to reach zero fresh water usage in production and zero hazardous waste to landfill by 2030Please see important disclosure information on pages 37 - 42 of this report.This report is intended for Jefferies clients only. Unauthorized distribution is prohibited. Upside Scenario,INR220, +69%FY25-28e revenue Cagr: 8%FY25-28e EPS Cagr: 21%Target multiple: 22x Downside Scenario,INR110, -16%FY25-28e revenue Cagr: 4%FY25-28e EPS Cagr: 5%Target multiple: 15xCatalystsUpside catalyst- Trade deals with US and EU; implementation ofthe UK FTA- Clarity on reciprocal tariffs in the US- Reduction in prices of key inputs, such asshipping and cottonDownside Catalyst- Unfavourable trade policy for Indian exporters- Weakening of consumer demand in the US andEU/UK 2 Focus ChartsExhibit 1 - With US$1.3bn in revenue, Welspun Living is the largest supplier ofhome textiles to the US with a growing presence in India too.US$1.3bn annualrevenue~US$150mn annualEbitdaPresence in 60+Countries30+ years track recordSource: Company data, JefferiesExhibit 3 - Welspun Living is a key supplier of home textiles to leading retailers such as Target, Walmart, Costco, Tesco, Sainsbury etc..Source: Company data, JefferiesExhibit 4 - Indian exporters have a 60%+ market share in sheets in the USCountry-wise market share in US bed sheet imports.2223191817323845463023222423161615131301020304050607080901002010201120122013(%)Source: OTEXA, JefferiesPlease see important disclosure information on pages 37 - 42 of this report.This report is intended for Jefferies clients only. Unauthorized distribution is prohibited. Revenue split by geography - Welspun Living.UK & EuropeanUnion16%India13%Middle East, Australia, New Zealand andJapan8%Source: Company data, Jefferies; data for FY24Exhibit 5 - Strong presence in towels too with >40% shareCountry-wise market share in terry towel imports.3135363637384039272526262625232423242223232222212016151615151516010203040506070809010020102011201220132014201520162017IndiaChina(%)Source: OTEXA, Jefferies Exhibit 6 - Market share for Indian players is lower in EU and UK given higherduty vs. competitionTowel market share in the EU.IndiaChinaBangladeshSource: Company data, JefferiesExhibit 8 - Import tariffs in the EU faced by exporters from different countries.Category/ CountryTowelsSheetsFlooringsRugsAdvanced TextilesSource: Company data, JefferiesExhibit 9 - FTA negotiations underway with the EU and govt. aims to conclude these in 2025. India-UK FTA has already been agreed upon and should beimplemented going forward. These should provide a boost to competitiveness and enable stronger long-term growth..Source: Company data, JefferiesExhibit 10 - Import tariffs in the US - Including current reciprocal tariffs.Country/CategoryTowelsSheetsFlooringsRugsAdvanced TextilesTariffs in US - Incl. current reciprocal tariffs - 30% for China and 10% for othersSource: Company data, JefferiesPlease see important disclosure information on pages 37 - 42 of this report.This report is intended for Jefferies clients only. Unauthorized distribution is prohibited. Bed Linen market share in the EU.IndiaChinaBangladeshOthersSource: Company data, JefferiesBangladeshVietnam0%0%0%0%0%0%0%0%0%0%Indian players are disadvantaged in the EUwith 10% import duty vs. nil for competitionfrom Pakistan, Bangladesh and VietnamBangladeshVietnam19%19%14-22%14-22%15%15%10-17%10-17%10%10%While reciprocal tariffs create uncertainty,India is much better placed vs. China and isat par with others. Potential India US tradedeal would help strengthen this advantage India 4 IndiaChinaPakistan19%47%19%14-22%41-49%14-22%15%60%15%10-17%55-62%10-17%10%55%10% Exhibit 11