Nuvama Institutional Equities has initiated coverage on Welspun Corp with a “Buy” recommendation, setting a target price of Rs 1,028.
The brokerage noted that,
The company has growth visibility across India, the US and Saudi Arabia
The firm's order book is at Rs 23,500 crore, highest in over a decade.
Nuvama sees company's Ebitda margin above 12% by FY28.
Rs 5,500 crore capex till FY27 to improve margins and returns.
High-margin exports support strong profitability in India and overseas.
India growth driven by gas pipelines, water projects.
Welspun Corp posted a 57% rise in consolidated net profit to Rs 443.51 crore in the September quarter, driven by a rise in revenues from the core steel products business.
The company had clocked a net profit of Rs 282.96 crore in the July-September period of the preceding 2024-25 financial year, the company said in a regulatory filing. Total income increased to Rs 4,408.66 crore in the September quarter from Rs 3,364.23 crore in the year-ago period.
Total expenses stood at Rs 3,916.09 crore, higher from Rs 3,074.90 crore in Q2 FY25.
The scrip is also a multibagger as it has delivered a return of over 520% in the last five years. Moreover, the company has recorded a high of Rs 994 on June 10 and a low of Rs 664.30 on April 7.
Welspun Corp commenced operations in 1985. It is a large diameter pipes manufacturer and has a global footprint in the line pipes business, based across six continents and fifty countries.
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