The shares of the large-diameter pipes manufacturer gained up to 4 percent after the company received a letter of award for the export of line pipes from India worth Rs 611 crore.
With a market capitalization of Rs 14,962.11 crore, the shares of Welspun Corp Limited were trading at Rs 571.55 crore, increasing around 1.67 percent as compared to the previous closing price of Rs 561.75 apiece.
According to the company filing, Welspun Corp Limited has announced they received a letter of Award (LOA) for the export of line pipes from India. The contract, valued at Rs 611 Crore is for the supply of LSAW Pipes, Coating, and Bends in Latin America. The execution of this contract shall be done in FY25.
Looking into Welspun Corp’s financial performance, revenue increased by 97 percent from Rs 2,402 crore in Q3 FY23 to Rs 4,750 crore in Q3 FY24. During the same period, net profit increased by 1,178 percent, from Rs 23 crore to Rs 294 crore.
Welspun Corporation Limited is one of the world’s largest welded line pipe manufacturers, producing and coating high-quality submerged arc welded pipe, hot rolled steel plates, coils, plastic goods, and other items. The company has an order book of 575 KMT for line pipes in India and the US, valued at around Rs. 7,200 crore.
Welspun Corporation Limited is one of the world’s top three-line pipe producers, with five manufacturing sites spread across three countries. These pipelines transport oil, gas, and water both offshore and onshore.
The company’s DI Pipes division has shown expected growth, with Q3 sales volume increasing by more than 5 times YoY and 36% QoQ. 9MFY24 sales volume was 135 KMT.
The stock has delivered returns of 41.58 percent in the last six months and a multi-bagger return of 160.53 percent in a year. A shareholder’s investment of Rs. 1 lakh in the company would be worth Rs. 2.60 lakh in a year.
WCL is a major maker of big-diameter pipes worldwide. The firm produces BIS-certified steel billets, TMT (Thermo-Mechanically Treated) rebars, Ductile Iron (DI) pipes, stainless steel pipes, and tubes/bars.
Written by:- Abhishek Singh
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