Welspun Corp
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Welspun Corp's management has articulated a strategic pivot towards export-led growth, particularly in high-margin international markets, to counteract domestic challenges. This approach is underpinned by a robust order book of approximately Rs 25,350 crore, with significant contributions expected from the U.S. midstream sector, driven by LNG and data center infrastructure. Vista's financial outlook reflects a revenue target of Rs 20,000 crore and EBITDA of Rs 2,850 crore for FY27, supported by improving margins as the company capitalizes on its integrated manufacturing capabilities. The favorable industry dynamics, characterized by increasing infrastructure spending and urbanization, further bolster this outlook. However, potential headwinds include fluctuations in raw material prices and competitive pressures in the domestic market. Over the next 12-24 months, key opportunities lie in the commissioning of new capacities in the U.S. and Saudi Arabia, while watchpoints include execution risks and the impact of global market conditions on domestic operations
Why We Like This Stock
- Strong order book of Rs 25,350 crore, primarily linked to U.S. infrastructure demand
- Management's focus on high-margin international markets enhances revenue and margin potential
- Improving pricing power and stable demand profile in the pipes industry support long-term growth
Things To Watch Out For
- Potential fluctuations in raw material prices could impact profitability
- Domestic market challenges, including overcapacity in the ductile iron pipe segment, pose risks
- Execution risks associated with new capacity expansions in the U.S. and Saudi Arabia
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 17,340 | 13,978 | 16,770 | 18,242 | 20,353 |
| Profit Before Tax (Cr.) | 1,299 | 1,435 | 2,147 | 3,155 | 3,291 |
| PBT Margin | 7.5% | 10.3% | 12.8% | 17.3% | 16.2% |
| Net Profit (Cr.) | 1,182 | 1,271 | 1,840 | 2,689 | 2,795 |
| Earnings Per Share | 43.8 | 48.4 | 69.5 | 101.6 | 105.9 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Jeffries | ▲ Buy | 3,250 | 03-Sep-2026 |
| Nuvama | ▲ Buy | 1,890 | 28-Jul-2026 |
| Mirae Asset | ► Add | 1,500 | 16-Jun-2026 |
| Kotak Securities | ► Add | 1,410 | 26-May-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.