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,
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The company has growth visibility across India, the US and Saudi Arabia
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The firm’s order book is at Rs 23,500 crore, highest in over a decade.
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Nuvama sees company’s Ebitda margin above 12% by FY28.
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Rs 5,500 crore capex till FY27 to improve margins and returns.
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High-margin exports support strong profitability in India and overseas.
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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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