The shares of the pipe manufacturing company jumped 6 percent after announcing strong Q2 FY24 results. In six months the company has delivered a multibagger return of 113 percent to its stake holder.
For example, if someone had invested Rs. 1 lakh in these shares six months ago, the worth of those shares would be Rs. 2.13 lakh now.
With a market capitalization of Rs. 11,954 crores, the shares of Welspun Corp Ltd started on a higher note at Rs. 480. The share hit an intraday high of Rs. 496 making a gain of around 6 percent which is also recorded as the company’s new 52-week high and closed its day at Rs. 479 apiece.
Such a positive movement in the stock was observed after the company announced its June September results. The company’s revenue marginally decreased by 0.2 percent from Rs. 4,069 crores during the June quarter to Rs. 4,059 crores in September. On a contrasting note, the net profit magnified by 133 percent from Rs. 165 crores to Rs. 384 crores during the same timeframe.
Comparing these metrics on a YoY basis, the revenue increased by 107 percent from Rs. 1,963 crores during Q2 FY23 to Rs. 4,059 crores in Q2 FY24. Moreover, the net profit shifted from a net loss of Rs. 56.6 crores to a net profit of Rs. 384 crores during the same period.
Furthermore, the company mentioned that it had entered into an arrangement for the supply of renewable energy under Group Captive Structure with Mounting Renewable Power Limited (MRPL) which is a subsidiary of Welspun New Energy Limited (WNEL). For the above-mentioned arrangement, the board approved an investment not exceeding Rs.44.25 Crore.
Looking into the important financial ratios, the return on equity was at 4.36 percent in FY22-23 and the return on capital employed was recorded at 7.96 percent in the same financial year.
According to the latest shareholding pattern, Promoters have a 49.96 percent stake, the Public has 29.07 percent shares, FIIs have 9.42 percent holdings, and the remaining 11.55 percent is with DIIs.
Headquartered in Kutch, Welspun Corp Ltd was incorporated in the year 1995. The company is an Indian multinational manufacturer of large-diameter pipes. It has a production capacity of 2.55 MTPA across its plants located in India, Saudi Arabia, and the United States.
Written By Vaibhav Patil
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