This stock is a global leader in the production of large-diameter pipes, as well as BIS-certified steel billets, TMT rebars, and stainless steel products. The stock has jumped to 2.24 percent after securing multiple contracts worth Rs 130 crore for steel pipes.
Stock Price Movement:
In the Friday trading session, Welspun Corp Limited’s stock jumped to an intraday high of 2.24 percent from the previous close of Rs. 787.85. The stock is currently priced at Rs. 798, with a high of Rs. 805.50 and a low of Rs. 790.45.
The market capitalization is currently around Rs. 20,935.48 crore. Over the past five years, the company has delivered a return of 500.19 percent.
What Happened
Welspun Corp Limited has announced that its associate company, East Pipes Integrated Company for Industry (EPIC), has secured multiple contracts worth over SAR 57 million (approximately Rs 130 crore). These contracts have been awarded by Saudi Real Estate Infrastructure Company (Binyah) and AI Rashid Trading and Contracting Company.
The contracts, which involve the manufacturing and supply of steel pipes along with coating services, will be executed over a seven-month period. The financial impact of these contracts is expected to be reflected in the company’s financial statements during the first and second quarters of FY 2025-2026.
Future Outlook:
Welspun Corp Limited is strategically strengthening its position as a global leader in pipe manufacturing, aiming for 15-20% growth across various industries such as oil & gas, infrastructure, and specialty steel. The company has set a target to build a profitable India Retail Textiles B2C business worth nearly Rs. 3000 crore in the medium term.
Additionally, the company plans to retain its global dominance in ductile iron pipes and large-diameter pipes, working towards achieving a sales portfolio exceeding one million tons.
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Market Share:
Welspun Corp Limited occupies a prominent market position, ranking among the top three global producers in home textiles and large-diameter pipes. The company aims to achieve a market share of over 30% in its domestic home textile business in the medium term.
Recent Quarter Results and Ratios:
Welspun Corp Limited’s revenue has declined from Rs. 4,059 crore in Q2 FY24 to Rs. 3,302 crore in Q2 FY25, marking an 18.65% decrease. The company’s net profit has also fallen by 26.87%, from Rs. 387 crore in Q2 FY24 to Rs. 283 crore in Q2 FY25.
Over the past three years, Welspun Corp Limited’s revenue and net profit have grown at a compound annual growth rate (CAGR) of 34.33% and 11.16%, respectively.
Regarding return ratios, the company’s return on capital employed (ROCE) and return on equity (ROE) stand at 7.71% and 41.8%, respectively. The debt-to-equity ratio is 0.37x, indicating that the company is nearly debt-free. Welspun Corp Limited’s earnings per share (EPS) is Rs. 41.8.
Company Overview:
Welspun Corp Limited is a global leader in the production of large-diameter pipes, as well as BIS-certified steel billets, TMT rebars, ductile iron pipes, and stainless steel products. The company has broadened its portfolio by acquiring the assets of Sintex-BAPL and ABG Shipyard.
Written By – Nikhil Naik
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