In Wednesday’s trading session, shares of one of the leading steel stock, specializing in manufacturing large-diameter pipes, including stainless steel pipes, tubes, and bars, jumped 6.5 percent upon signing a Memorandum of Understanding (MOU) with Saudi Aramco for the establishment of a line pipe manufacturing facility in Saudi Arabia.
Price action
With a market capitalization of Rs. 19,143 crores on Wednesday, the shares of Welspun Corp Limited is trading at Rs. 765.90 up by 6.3 percent making a high of Rs. 777.70 per share compared to its previous closing price of Rs. 731.15 per share.
What Happened
Welspun Corp Limited specializing in manufacturing large-diameter pipes, including stainless steel pipes, tubes, and bars, has Signed a Memorandum of Understanding (MOU) with Saudi Aramco for the establishment of a state-of-the-art LSAW (Longitudinal Submerged Arc Welded) line pipe manufacturing facility in Saudi Arabia.
The new plant, with a production capacity of 350,000 MT per annum, will be located in Dammam’s 3rd Industrial City and is set to begin operations by mid-2026. This facility will support Saudi Aramco’s future requirements for oil, gas, hydrogen transmission, and carbon capture, utilization, and storage (CCUS) developments.
Future Outlook
Welspun Corp Ltd. aims to maintain its global leadership in brand-led home textiles while capitalizing on the growing B2C opportunities in the domestic market. The company is also poised to tap into the $20 billion global flooring market.
As a leader in the global large-diameter pipe industry, Welspun is well-positioned to benefit from the transformation in the Rs. 3.6 trillion water infrastructure market. Additionally, it continues to focus on creating high-quality, technology-driven transport assets for future growth.
Key Insights
Welspun Corp Ltd. has a P/E ratio of 17.34, which is notably lower than the industry average of 37.23, suggesting the stock may be undervalued. Its PEG ratio of 0.48 further supports this potential undervaluation. The company also has a low debt-to-equity ratio of 0.37, reflecting its strong financial position and stability.
Financials
The company’s revenue declined by 19.15 percent from Rs 4,161.41 crore to Rs 3364.23 crore in Q2FY24-25. Meanwhile, Net profit fell from Rs 384.67 crores to Rs 286.95 crore during the same period.
Written by Sridhar J
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before
