The share of this small-cap steel firm engaged in the business of manufacturing pipes and long stainless steel surged up by 9 percent on Tuesday after the company received a work supply order worth Rs. 117 Crores from Bharat Heavy Electricals Limited (BHEL) Trichy.
With a market capitalization of Rs 2,331.86 crores, the shares of Welspun Specialty Solutions Limited surged by 9 percent, trading at Rs 43.99 a piece on Tuesday’s morning market hours. It has generated an overall return of 63 percent over the past one year and 12 percent over the last 6 months.
What happened: According to Welspun Specialty Solutions Limited’s stock exchange filings, It has announced that it has been selected as the Lowest bidder for a project worth Rs 117 crores by BHEL for the supply of Seamless Stainless Boiler tubes.
The seamless stainless steel boiler tubes ordered by BHEL will be used for the National Thermal Power Corporations’s (NTPC) Talcher Supercritical Thermal Power Project with a capacity of 2 x 660 Megawatt (MW). The Tender has been approved by both BHEL and NTPC, and it is expected to be executed by December 2024.
Financials: Reviewing the financials of Welspun Specialty Solutions Limited on a year-on-year basis, the revenues rose by 67 percent from Rs 418 crores in FY23 to Rs 697 crores in FY24. In the same time frame, the company witnessed a transition from a net loss of Rs 14 crores to a net profit of Rs 62 crores.
Ratios: In terms of return ratios for the year 2024, it has reported a return on equity (ROE) of 67.11 percent and a return on capital employed (ROCE ) of 27.67 percent. It has also reported a gross profit margin of 11.09 for the same period.
EBITDA and PAT: In terms of financial achievements, Welspun saw a rise in EBITDA by 146 percent from Rs 315 crores in FY23 to Rs 773 crores in FY24. Also for the profit after tax ( PAT) the company demonstrated a transition from a net loss of Rs 137 crores to Rs 625 crores in the same time frame.
Order book and product-wise sales: The order book of the company saw a slight increase by 0.18 percent from Rs 165.8 crores in Q3FY24 to Rs 166.1 crores in Q4FY24. Regarding the sales figures for specific products, the company sold 3,610 metric tonnes (MT) of SS bars and 1,118 units of SS pipes in Q4FY24.
Competitive advantage and market presence: As for its competitive advantage, Welspun claims to be the only producer of Stainless Steel Bars and Pipes & Tubes starting from Steel Making to Finished Tubes in the country. They also have a strong market presence in other countries such as Canada, Italy, Belgium, Netherlands, etc.
Shareholding pattern: As of March 2024, the firm’s ownership structure indicated that promoters held 55.17 percent of shares in the company, while the public held 44.83 percent.
About the company: Incorporated in 1980 and headquartered in Mumbai, Welspun Specialty Solutions is in the line of Manufacturing Stainless Steel Long Products and Seamless Pipes. In the stainless steel and alloys category, the company produces a range of items including Ingots, Blooms, and peeled and polished bars. In the seamless pipes category, their offerings include Hollow Bars, Cold Finished Pipes & Tubes, and Heat Exchanger Tubes, among others.
Written By Zahal.
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 investing.
