Shares in Welspun India, have finally gained, after losing 50 per cent in 4 trading days. The shares, which closed last Friday at Rs 108, are now available at Rs 57, exactly a week later.
The stock was finally seeing some sort of short covering rally, after relentless fall and was trading 5% higher at Rs 57.
The problem did not end there, after that there were reports that Walmart would look at the products and do an audit. Now, J C Penney has said that it will review its supply chain and do a check.
All in all, it has been a horrific time for the company. It did come out and say that it was appointing one of the top 3 auditors. But, that has not stopped investors from worrying.
Welspun India generates a substantial revenue from the US, which is probably more than 60 per cent of its revenues. If the other biggies severe ties with the company, it is going to be a difficult phase for the company.