Welspun Corp
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Welspun Corp's recent performance and management guidance indicate a robust growth trajectory, driven by a strong order book of approximately Rs 25,350 crore, with significant contributions expected from the U.S. LNG and data center markets. Management's confidence in achieving FY27 revenue of Rs 20,000 crore and EBITDA of Rs 2,850 crore reflects a favorable demand environment, particularly in the U.S. and Middle East, where infrastructure investments are surging. The company's strategic capacity expansions in both regions are poised to enhance revenue and margins, aligning with Vista's forecast of improving profitability. However, challenges such as domestic overcapacity in the ductile iron pipe segment and rising raw material costs could pose risks. The macroeconomic backdrop in India remains supportive, with stable inflation and favorable liquidity conditions, further bolstering Welspun's outlook. Over the next 12-24 months, key opportunities include capitalizing on the U.S. energy infrastructure boom and expanding export capabilities, while watchpoints include execution risks related to new capacities and potential geopolitical disruptions affecting commodity prices
Why We Like This Stock
- Strong order book of Rs 25,350 crore, primarily linked to U.S. infrastructure demand
- Management's guidance for FY27 indicates significant revenue and EBITDA growth, reflecting robust market conditions
- Strategic capacity expansions in the U.S. and Saudi Arabia are expected to enhance revenue and margins
Things To Watch Out For
- Domestic overcapacity in the ductile iron pipe segment may impact profitability
- Rising raw material costs could pressure margins despite pass-through pricing strategies
- Execution risks related to new capacity projects and geopolitical disruptions remain potential headwinds
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 17,340 | 13,978 | 16,770 | 18,254 | 20,896 |
| Profit Before Tax (Cr.) | 1,299 | 1,435 | 2,147 | 4,260 | 4,326 |
| PBT Margin | 7.5% | 10.3% | 1280.3% | 23.3% | 20.7% |
| Net Profit (Cr.) | 1,182 | 1,271 | 1,840 | 3,632 | 3,674 |
| Earnings Per Share | 43.8 | 48.4 | 69.5 | 137.1 | 139.3 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Kotak Securities | ► Add | 1,410 | 26-May-2026 |
| Mirae Asset | ► Add | 1,500 | 16-Jun-2026 |
| Nuvama | ▲ Buy | 1,890 | 28-Jul-2026 |
Company Overview
Show Company Profile
Welspun Corp Limited, together with its subsidiaries, manufactures, trades in, distributes, and sells steel pipes, tubes, bars, coils, and plates in India, the United States, and internationally. It operates through Steel Products and Others segments. The company offers carbon steel line pipes comprising longitudinal submerged arc welding, helically submerged arc welding, high frequency welding, bends, and anti-corrosion and concrete weight coating; ductile iron pipes; thermo-mechanically treated bars; pig iron products; stainless steel and alloy products; water tanks; industrial containers; SMC panel tanks; electrical enclosures; and uPVC interiors. It also provides plastic products; basic precious and non-ferrous metals; prefabricated structures, infra project services, and turnkey projects; custom moulded products; polymers and its products; PVC/CPVC pipes and fittings for water supply; water pipes; and billet, rolled bar, black bar, ingot, bloom, and seamless pipes and tubes. The company's products are used in onshore and offshore oil, gas, and water transmission; gas distribution; households, commercial buildings, and institutional settings; hydrogen pipelines; and nuclear, space, defence, power and energy, and petrochemicals sectors. The company was formerly known as Welspun Gujarat Stahl Rohren Limited and changed its name to Welspun Corp Limited in April 2010. Welspun Corp Limited was incorporated in 1995 and is headquartered in Mumbai, India.