This stock is a global leader in manufacturing large-diameter pipes, along with BIS-certified steel billets, TMT rebars, and stainless steel products. The stock is in focus after $100 million was invested in the HFIW pipe manufacturing facility in the USA.
Stock Price Movement:
In Friday’s trading session, Welspun Corp Limited’s share plunged by 1.82 percent from the previous close of Rs. 794.85. The stock is currently trading at Rs. 780.70, with a high of Rs. 794.95 and a low of Rs. 774.80.
The market capitalization now stands at approximately Rs. 20,481.62 crore. Over the last five years, the company has provided a return of 462.06 percent.
What Happened:
Welspun Tubular LLC, a step-down subsidiary of Welspun Corp Ltd, commenced the expansion of its HFIW pipe manufacturing facility in Little Rock, Arkansas, USA.
The company has invested $100 million. The project aims to upgrade Welspun’s line pipe portfolio, create 175 jobs, and achieve completion by March 2026, strengthening its global manufacturing leadership.
Future Outlook:
Welspun Corp Limited is strategically expanding its global pipe manufacturing leadership, targeting 15-20% growth across diverse sectors like oil & gas, infrastructure, and specialty steel. The company aims to create an almost Rs. 3000 crore profitable India Retail Textiles B2C business in the medium term.
The company is also planning to maintain global leadership in ductile iron pipes and large-diameter pipes to reach a more than million-ton sales portfolio.
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Market share:
Welspun Corp Limited holds a significant market position, being among the top three producers globally in home textiles and large-diameter pipes. The company is targeting a more than 30% market share in the medium term for its domestic home textile business.
Recent quarter results and ratios:
Welspun Corp Limited’s revenue has decreased from Rs. 4,059 crore in Q2 FY24 to Rs. 3,302 crore in Q2 FY25, which has dropped by 18.65 percent. The net profit of Welspun Corp Limited is down by 26.87 percent, from Rs. 387 crore in Q2 FY24 to Rs. 283 crore in Q2 FY25.
Welspun Corp Limited’s revenue and net profit have grown at a CAGR of 34.33 percent and 11.16 percent, respectively, over the last three years.
In terms of return ratios, the company’s ROCE and ROE should be 7.71 percent and 41.8 percent, respectively. The debt-to-equity ratio of the company is to be 0.0.37x, which shows the company is almost debt-free. Welspun Corp Limited’s EPS is to be Rs. 41.8.
Company Overview:
Welspun Corp Limited is a global leader in manufacturing large-diameter pipes, along with BIS-certified steel billets, TMT rebars, ductile iron pipes, and stainless steel products. The company expanded its portfolio through acquisitions of Sintex-BAPL and ABG Shipyard assets.
Written By – Nikhil Naik
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