The shares of this leading manufacturer of large-diameter pipes marginally gained to ₹536.80 per share, on Tuesday after the company received an order worth ₹512 crore in Saudi Arabia from its associate company.
Welspun Corp. Ltd. is a Small cap company with a market capitalization of ₹13,724 crore. At 1:10 p.m, the company shares were trading at ₹521.20 a share, a decrease of 2.75 percent from the previous closing price on the stock exchange.
On March 25, Welspun Corp’s associate company, East Pipes Integrated Company (EPIC), Saudi Arabia’s prominent HSAW Pipes manufacturer, signed a contract with Saline Water Conversion Corporation (SWCC) valued at over SAR 230 million (Approx. ₹512 crore) for the production and supply of steel pipes. The contract spans 30 months.
Earlier, on March 22, the company’s associate entity, East Pipes Integrated Company for Industry (EPIC), announced a mutual agreement with Aramco to cease and nullify a SAR 153 million (approximately . Rs 339 crore) contract. The company reported in its exchange filing.
EPIC, a leading manufacturer of Helical Submerged Arc Welded (HSAW) pipes in Saudi Arabia, expressed confidence in its ability to secure additional projects in the water and Oil & Gas sectors.
Welspun is in the business of Line pipes, home textiles, infrastructure, Warehousing, Oil & gas, steel, advanced textiles, and flooring solutions. The company also provides coating systems like external 3-layer Polyethylene, Internal Epoxy, and more, along with ancillary services such as Double jointing and Pipe Bending.
Welspun Corp. shares gained 32 percent in the last six months, and multibagger returns of 174 percent in the last 12 months. For instance, a shareholder investment of ₹1 lakh in a company a year ago would be worth 2.74 lakhs.
Welspun Corp Ltd stands as a prominent global manufacturer of large-diameter pipes, boasting a diverse product range that includes BIS-certified Steel Billets, TMT (Thermo-Mechanically Treated) Rebars, Ductile Iron (DI) Pipes, Stainless Steel Pipes, and Tubes & Bars.
The company has acquired Sintex-BAPL, a renowned leader in water tanks and other plastic products. Additionally, Welspun Corp Ltd strategically acquired specified assets of ABG Shipyard.
The company’s extensive product lineup encompasses HSAW Pipes (Helically Welded), LSAW Pipes (Longitudinally Welded), and ERW Pipes (Electric Resistance Welded), catering to Onshore/Offshore Oil, Gas, and Water Transmission needs.
Furthermore, it offers a comprehensive Coating System for anti-corrosion purposes and Value-added Services such as Double Jointing, Pipe Bending, and ID Machining, among others.
In February 2024, the company announced plans to establish a DI Pipes manufacturing facility in the Middle East, boasting a production capacity of 150 KMTPA. This initiative entails an investment of Rs. 500 crore spread over the next 4-6 quarters. Anticipated to commence commercial operations by the first half of calendar year 2025.
Regarding revenue streams, the company derives 97% of its revenue from steel products, with the remaining 3% contributed by other products, including plastic items. Geographically, 59% of the company’s revenue originates from operations within India, while the international market accounts for the remaining 41%.
The company’s manufacturing footprint spans across several locations. In India, manufacturing facilities are located in Anjar (Gujarat), Bhopal (Madhya Pradesh), Mandya (Karnataka), and Jhagadia (Gujarat). Internationally, the company operates a manufacturing facility in Little Rock, Arkansas, USA. Collectively, these facilities boast a combined pipe production capacity of 2.2 million metric tonnes.
Written by Omkar Chitnis
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