SmallCap stock which is among the Largest welded-line pipe-manufacturing companies in the world jumped upto 2 percent in the day’s trade upon receiving work orders worth Rs. 1,300 Crores from the USA.
Price Action
With a market capitalization of Rs. 19,325.97 Crores, the shares of Welspun Corporation Limited were trading at Rs. 736.65 per equity share, up 0.56 percent from its previous day’s close price of Rs. 732.55
What Happened
Welspun Corporation Limited has received new large work orders in the USA for the supply of coated HSAW Pipes for Natural Gas Pipeline Projects for a consideration of ~Rs. 1,300 Crores and it is to be executed during FY26.
This order win further reinforces Welspun Corporation Limited’s leading position in the USA O&G market. It has also participated in a few more projects and is favorably placed in an additional 1-2 large projects.
About the Company
Welspun Corporation Limited is among the Largest Welded Line pipe-manufacturing companies in the world, engaged in the business of manufacturing and coating high-grade submerged arc welded pipe, hot rolled steel plates, coils, plastic products, and many more.
It has a robust orderbook of ~Rs. 15,200 Crores and its segment breakup is as follows, Water 63 percent, Tunneling 13 percent, and Road 13 percent, it also includes orders of Welspun Michigan Engineers (Subsidiary) 11 percent.
Welspun Corporation Limited is among the top 3 line pipe manufacturers globally, with 5 manufacturing facilities in 3 countries. These pipes are used for offshore and onshore transmission of oil, gas, water, and many others.
Welspun Corp is evaluating various organic/ inorganic growth options in DI Pipes and Steel capacities along with downstream products, in Spiral/ Coating at new locations and in Sintex at various new locations.
Financials and Ratios
Its Revenue from operations declined by 23 percent from Rs. 4,069.27 Crores in Q1FY24 to Rs. 3,137.23 Crores in Q1FY25, accompanied by profits of Rs. 168.45 Crores to Rs. 247.94 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of 19.76 percent, and a return on capital employed (ROCE) of 22.18 percent. It has reported a debt-to-equity ratio of 0.35.
Written by: Bharath K.S
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