Welspun Shares Jump As It Guides For 50% Revenue Growth In FY24

Shares of Welspun Corp Ltd. rose the most in nine weeks as its fourth-quarter profit and revenue beat analysts' estimates.

The company's net profit rose 8.91% year-on-year to Rs 240.1 crore in the quarter ended March, according to an exchange filing. That compares to the consensus profit estimates of analysts polled by Bloomberg at Rs 116.1 crore.

The company guided for a 50% growth in its revenue over FY24 to approximately Rs 15,000 crore. Welspun also targets increasing natural gas consumption from 6% to 15% of the energy mix by 2030. It also expects refining capacity to increase from 250 MTPA to 450 MTPA over the next few years.

Welspun Corp Q4 FY23 (Consolidated, YoY)

• Revenue was up 102.4% at Rs 4,070.15 crore (Bloomberg estimate: Rs 3,150.7 crore).

• Ebitda up 490.6% at Rs 420.6 crore (Bloomberg estimate: Rs 260.1 crore).

• Ebitda margin at 10.3% vs. 3.5% (Bloomberg estimate: 8.3%)

• Net profit is down 8.91% at Rs 240.1 crore (Bloomberg estimate: Rs 116.1 crore).

Shares of Welspun Corp rose 5.54% to Rs 256.4 apiece as of 11:09 a.m. on Tuesday, compared to a 0.45% decline in the benchmark Nifty 50. The stock gained as much as 6.01% intraday, the most in nine weeks since March 29.

The total traded volume so far in the day stood at 12.9 times its 30-day average. The relative strength index was at 73, implying that the stock may be overbought.

Out of the seven analysts tracking the company, six maintain a 'buy' rating and one recommends a 'hold' on the stock, according to Bloomberg. The average 12-month consensus price target implies a potential upside of 2%.