Walmart has acknowledged India’s emergence as a global hub of manufacturing by committing to triple the exports of goods made in the country to $10 billion per year by 2027. By supporting the “Make in India” initiative, Walmart will help local Indian businesses gain exposure to international customers, which in turn, will create jobs and boost the Indian economy.
Walmart (WMT) is already involved in initiatives such as the Flipkart Samarth and Walmart Vriddhi supplier development programs and will strengthen the development of the supply chain ecosystem in India by expanding and developing the pool of exporters.
Welspun is a local Indian brand that exemplifies the “Make in India” story, and since becoming a Walmart supplier in 1998, they have grown to become the world’s biggest textiles manufacturer and currently employ 20,000 people.
Walmart alone employs 2.2 million people worldwide, with 265 million customers visiting around 11,400 stores in 26 countries and eCommerce sites every week. The retail giant has earned $524 billion in revenue for the 2020 fiscal year. (See WMT stock analysis on TipRanks)
Walmart is up 25% year-to-date, and the Strong Buy analyst consensus is based on 24 ratings, including 19 Buy recommendations, 5 Holds and no Sells. The average price target is $162.34, which implies a 10% potential increase over the next 12 months.
Simeon Gutman, of Morgan Stanley, recently reiterated his Buy recommendation on the stock after Flipkart, which is 80% owned by Walmart, raised $700 million by a partial spinoff of the digital payments app, PhonePe.
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