The shares of this Steel Stock, which is one of the largest manufacturers of large-diameter pipes, with a presence across six continents and fifty countries, jumped 3% following plans of investing Rs. 113 crore for setting up a new production line to expand operational capacity.
Stock Price Movement:
In Wednesday’s trading session, Welspun Corp Limited’s share reached an intraday high of Rs. 822.35 per equity share, rising 2.53 percent from its previous day’s close price of Rs. 802.05. The stock opened at Rs. 793.75 and is currently trading at Rs. 776.85. The market capitalization now stands at approximately Rs. 20,380.61 crore.
What Happened:
Welspun Corp Limited’s associate company, East Pipes Integrated Company for Industry (EPIC), is expanding its capacity by setting up a new production line for helical submerged arc welded (HSAW) pipes at its factory in Dammam 2nd Industrial City. The project is costing SAR 48 million (approximately Rs. 113 crore).
The company expects to complete the project by Q4 of FY 2025-26 and begin commercial production in Q1 of FY 2026-27. This expansion will increase the production capacity by 100,000 MTs, strengthening EPIC’s position as Saudi Arabia’s leading HSAW pipe manufacturer and supporting the country’s Vision 2030 goals.
Order Book:
Welspun Corp Limited’s order book stands at approximately Rs. 15,000 crore as of December 2025. The order book includes Line Pipes orders of 866 KMT worth Rs. 12,200 crore, DI Pipes orders of 336 KMT valued at Rs. 2,710 crore, and SS Bars & Pipes orders of 4,221 MT worth Rs. 185 crore, reflecting strong demand across key segments.
Management Guidance:
The company plans to earn Rs. 17,000 crore in revenue and Rs. 1,700 crore in EBITDA for FY25, aiming for a 20 percent return on capital (ROCE). So far, in the first nine months, the company has made Rs. 10,200 crore in revenue and Rs. 1,356 crore in EBITDA, with a 15 percent ROCE, showing good progress toward its goals.
Strategic Investments:
The company is investing Rs. 5,508 crore in six major projects across multiple locations. The largest, a Plastic Pipes and WST project (Rs. 2,355 crore), will roll out from FY26 to FY28. In Saudi Arabia, DI Pipes and LSAW plants (Rs. 1,660 crore) are planned in partnership with ARAMCO.
The U.S. HFIW plant (Rs. 840 crore) has begun construction. In India, DI Pipes expansion, a DRI plant, and a spiral line are progressing, with DI Pipes ahead of schedule.
Written By – Nikhil Naik
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