Welspun Corp extends rise, jumps 4% to new high on robust order book

Shares of Welspun Corp jumped 4 per cent to a a new high on Monday, extending the gains recorded in previous session following its largest-ever single order win from the US worth $1.8 billion or ₹17,200 crore. With this order, the company's global order book has reached its highest-ever, prompting bullish views from analysts.

 

Welspun Corp share price hit a fresh high of ₹2,400 on the BSE, up 4 per cent against the last closing price of ₹2,306.40. It had rallied 15 per cent in Friday's trading session and remains in the green for the sixth consecutive trading day.

 

 

The company on Thursday evening announced that it has secured the largest single order in its history — valued at approx $1.8 billion (~₹17,200 crore) — for the supply of pipes from its manufacturing facility in the United States of America. The order will be executed between FY28 & FY29.

 

This order substantially strengthens the company's order book, enhances multi-year revenue visibility, and stands as a strong validation of the scale, quality, and execution capability of its operations, it said in an exchange filing. With this order, the company's global order book stands at a record $4.4 billion (~₹42,100 crore) — the highest in its history.

 

Brokerages on Welspun Corp 

Following this, brokerages raised their earnings expectations for Welspun Corp.

 

Nuvama Broking said, "Consistent order execution and strong order wins impel us to raise FY27E/28E/29E EPS by 3 per cent/13 per cent/20 per cent." It has a ‘BUY’ rating with a revised target price of ₹2,656 (earlier ₹1,890) based on SotP valuation. The stock currently trades at 22x FY28E PE.

 

Meanwhile, Equirus Securities also increased the FY28E/FY29E Revenues & EBITDA estimates by 18 per cent/31 per cent and 18 per cent/34 per cent respectively to factor in this recent order (US is a higher margin geography).

 

It retained 'LONG' with a Dec’27 target price of ₹3,107 at 13x (10x earlier) one-year fwd. EV/Ebitda and valuing WSSL/EPIC stakes at 30 per cent/30 per cent holding discount, it said.

 

"The order provides substantial multi-year revenue visibility, even though the company refrained from giving exact Ebitda/ton guidance for the order due to its long execution period. The management indicated that US operating margins typically remain attractive.  Though no specific absolute EBITDA target was given, management indicated that the company is directionally moving towards ~₹50bn of Ebitda over the next 3-4 years, supported by the strong US demand environment, expected demand from M.E. and timely capacity expansion," it added.

 

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