Shares of this steel stock under the ‘small-cap’ category soared 2 percent in Tuesday’s trading session after entering into an MoU with the Telangana State Government for setting up a manufacturing plant in the state. The company’s scrip is inching toward its 52-week high level.
With a market capitalization of Rs 10,358.08 crores, the stocks of Welspun Corp Limited opened their trading session on Tuesday at Rs 400.95 and currently trade at Rs 395.85 indicating a gain of around 2 percent as compared to the previous close of Rs 388.70 apiece.
Such bullish movements in the company’s shares were observed after a BSE filing published by the company on September 25th 2023 pertaining to ‘Sintex BAPL’, a wholly owned subsidiary of Welspun Corp Limited, entering into a Memorandum of Understanding (MoU) with the Telangana State Government.
The MoU consists of a project wherein the subsidiary company will set up a manufacturing unit for water tanks and pipes in Telangana with an investment of up to Rs 350 crores. The proposed project is under the ‘incentive scheme’ of the state government.
“As a group we have been running our operations in the state already and this project will create further employment in the state. Sintex is an iconic brand for its water tanks and foray into PVC pipes segment will strengthen our presence into the building material verticals further.”, commented Mr. B. K. Goenka, Chairman, Welspun Group.
During the past couple of financial quarters, the company has been able to maintain their operating revenues at levels of Rs 4,070 crores. On a contrasting note, the bottom-line numbers, due to increased input costs, have reduced from Rs 211.5 crores to Rs 180.4 crores keeping the timeframe the same.
As per the latest shareholding data for the quarter ended June 2023, the company’s Promoters hold a 49.99 percent stake, and the Foreign Institutional Investors (FIIs) hold a 7.77 percent stake in the company.
Welspun Corp Limited is a company based in India that is engaged in the production and coating of hot rolled steel plates, coils, high-grade submerged welded pipes, etc. Some of the products offered by the company include longitudinally welded pipes, coating systems, high-frequency electric welded pipes, and many more.
Written by Amit Madnani
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