1. At a Glance
Welspun Investments & Commercials Ltd (WICL) is that quiet kid in class who never raises his hand, never answers viva questions, but somehow tops the internal exam because his elder siblings are overachievers. At a market cap of ₹469 crore, this Core Investment Company is sitting on investments worth ₹820 crore, trading at 0.64x book value, while the stock price casually hangs around ₹1,285, down ~5% today but up 44% over one year.
Sounds attractive? Hold your excitement. The company clocked PAT of ₹3.16 crore (TTM), EPS ₹8.65, ROE 0.62%, and ROCE 0.83%. Yes, decimal points are doing the heavy lifting here. Revenues are microscopic (₹5.13 crore TTM), operating margins look like crypto charts (81% OPM), and quarterly profits swing from hero to zero faster than a meme stock.
This is not a business stock. This is a holding company stock, a valuation puzzle, and occasionally a patience test. The question is simple but dangerous: are you buying Welspun, or are you renting its investments and paying an emotional premium?
2. Introduction
Welspun Investments & Commercials Ltd is not here to sell toothpaste, pipes, or roads. It exists to own other people who do the actual hard work—mainly Welspun Group companies across pipes, steel, infrastructure, oil & gas, textiles, and whatever else the group feels like touching that year.
Classified as a Core Investment Company (CIC) and non-deposit taking, WICL doesn’t even need RBI registration. That already tells you something: regulators looked at it and said, “Bhai, you’re just holding shares, chill.”
The revenue model is brutally honest:
- 97% dividend income
- 2% interest
- 1% fair value changes
No customers. No factories. No capex slides. No EBITDA margin drama. Just dividends in, expenses out, patience tested.
But here’s the twist: markets hate boredom. So while the underlying investments quietly compound, WICL’s own financials look anaemic, ROE stays permanently
stuck around 1%, and analysts keep scratching their heads asking why the discount exists.
Is it inefficiency? Is it governance paranoia? Or is it simply that Indian markets don’t like holding companies unless they scream growth on CNBC?
3. Business Model – WTF Do They Even Do?
Imagine owning a thali but only earning money when the waiter feels generous. That’s WICL.
The company:
- Invests in Welspun Group companies
- Occasionally trades textile products and commodities (don’t blink, you’ll miss it)
- Earns income only when dividends are declared or when market prices move
There is zero operating leverage, zero scalability, and zero incentive to optimize ROE because this entity exists primarily as a strategic holding vehicle, not a shareholder-return machine.
Think of it as:
- Not a fund (no fees)
- Not an NBFC (no lending)
- Not an operating company (no sales engine)
It’s a balance-sheet-first creature. If the underlying Welspun businesses do well, WICL’s NAV improves. If they don’t, you’re left holding a very expensive paperweight with excellent accounting.
Question for you: Do you trust Welspun Group’s capital allocation more than the stock market trusts it?
4. Financials Overview
Quarterly Comparison Table (₹ crore)
| Metric | Latest Qtr (Dec FY26) | YoY Qtr | Prev Qtr | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 0.13 | 0.19 | 4.90 | -31.6% | -97.3% |
| EBITDA | -0.16 | 0.08 | 4.57 | NA | NA |
| PAT | -0.13 | 0.07 | 3.49 | -286% | -104% |
| EPS (₹) | -0.36 | 0.19 | 9.55 | -289% | -104% |
Annualised EPS
