Welspun India share price tanked 9.98 per cent on NSE today. The company?is locked in lower circuit for the 3rd straight trading session after a media report that Wal-Mart, a US-based retailer, said that it would review the supply chain and cotton certification records of Welspun India and take suitable action if any quality issues were found in the firm’s supplies. Wal-Mart is Welspun India's 3rd largest client.
The exchanges, NSE and BSE, have lowered the daily permissible trading price limit of the scrip to 10 per cent from 20 per cent with effect from today.
Welspun India share price is currently trading at its fresh 52-week low, falling 42 per cent in past 3 trading sessions from Rs.102.85 on 19th August, after US-based Target?Corp announced last week that it was terminating business with the Indian manufacturer for substituting the cotton in bedsheets with a different type as compared to the contracted Egyptian one.
The company stated that it had initiated actions to investigate the root cause. Welspun India said on Saturday that they were appointing an external auditor, one of the Big four, to audit their supply systems and processes. They added that this was an issue of highest priority for them and they would take all necessary steps to address it.
In the medium to long term, market analysts said in an event update that they expect earnings to recover as Welspun India focuses on improving its quality control processes and better sourcing of cotton.
Out of the Top 500 Shares, Welspun India is among the Multibagger Shares, recognised by Dynamic Levels researchers for this month. The stock can be a great investment opportunity and can give you high returns. It is a well analysed multibagger stock, based on Dynamic Levels technical and fundamental research and also the scrip is being traded in very high volumes.
For more details, visit Welspun India share price history.
No comments:
Post a Comment