Jefferies has reiterated a hold rating on Welspun Living with a target price of ₹120, warning of significant near-term challenges for its US business following the imposition of 50% tariffs.
In its first analyst meet after the tariff announcement, management said the company has chosen to absorb 25% of the tariff burden while passing the remainder to customers. This move, aimed at protecting market share, is expected to lead to a washout of profitability in the near term and a 15–20% decline in US revenues.
However, Jefferies noted that management remains confident of a recovery once the 25% penalty is withdrawn, with cost optimisation measures already being pursued to limit the downside.
Disclaimer: The views and recommendations made in this article are those of Jefferies. This article does not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.
