Shares of this multibagger steel stock jumped approximately 8 percent in Monday’s trading session after the company bagged a supply order worth Rs 21.64 crores from a domestic Public Sector Undertaking (PSU) customer.
With a market capitalization of Rs 2,220.01 crores, the stocks of Welspun Specialty Solutions Limited started their trading session on Monday at Rs 40.20 and currently trades at Rs 41.88, gaining around 8 percent compared to the previous close of Rs 39.01 apiece.
Such bullish movements in the company’s share price were observed after the company, through a recent regulatory filing, intimated that it successfully bagged an order worth Rs 21.64 crores from a Domestic PSU customer for the supply of stainless steel seamless tubes.
The tubes mentioned above will be produced in an integrated manner under one roof and the same will be used for critical boiler applications. According to the requirement of the customer, the abovementioned order is expected to be executed by January 2025.
During the latest quarters, the company reported an opposing movement as far as its basic business indicators, viz, its operating revenues and net profits, are concerned. The former, on one end, dipped from Rs 175 crores during Q3FY24 to Rs 151 crores during Q4FY24, and the latter, on the other end, rose sharply from Rs 6 crores to Rs 40 crores.
As per the latest presentations, the company provided key updates on the development of its new products. The company developed and delivered many high-value grades including various alloy products, hollow bars, low cobalt for nuclear power, etc. Moreover, the company added ‘45’ new customers during FY24.
Keeping a purview of the last one year, the company’s stock has proven to deliver multibagger returns of approximately 116 percent to its stakeholders, i.e., if someone invested Rs 1 lakh into the company’s stock a year ago, it would have converted to Rs 2.16 lakhs.
Incorporated in 1980, Welspun Specialty Solutions Limited is engaged in manufacturing and selling steel & steel products in India. Some of the company’s offerings include rolled bars, ingot, bloom, pipes, tubes, and other tube-related products. Its products are usually applied in various sectors including oil & gas, power, defence, chemical, and others.
Written by Amit Madnani
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