Welspun Corp zooms 227% in 6 months; Jefferies projects further upside

Jefferies initiated coverage on Welspun Corp stock with a 'Buy' rating for a target price of ₹3,250 per share citing likely gains from an upcycle in oil & gas spends by the US and Middle East.

Welspun Corp share price movement

 

Welspun Corp's share price hit a new high of ₹2,675, rallying 6 per cent on the BSE in Thursday’s intra-day deals after Jefferies initiated coverage on the stock with a 'Buy' target price of ₹3,250.

 

In the past seven weeks, the stock price of the iron & steel company zoomed 68 per cent. Further, in the past six months, it skyrocketed 227 per cent from a level of ₹817.70 on the BSE. It bounced back 277 per cent from its 52-week low of ₹709.95 touched on February 2, 2026.

 

At 09:33 AM, Welspun Corp quoted 5 per cent higher at ₹2,639.90, compared to a 0.32 per cent rise in the BSE Sensex. A combined 1.9 million equity shares changed hands on the NSE and BSE.

 

 

What’s driven Welspun Corp's stock price in the past six months?

 

Welspun Corp is one of the dominant players in India and the United States of America (US) welded pipes manufacturing industry, particularly large diameter line pipes. Over the past few years, Welspun Corp successfully commissioned and implemented various greenfield/brownfield capex (US High-Frequency Induction Welded (HFIW) Pipes, Ductile Iron (DI) Pipes, Thermo-Mechanically Treated (TMT) bars) and reconfigured some of the facilities (alloy to stainless steel).

 

The Lines Pipes segment (67 per cent of the installed steel products capacity), continues to be driven by the company’s US manufacturing operations. The medium-term demand outlook in the oil & gas pipeline sector within US remains strong, driven by significant investments in LNG export infrastructure and increased power infrastructure demand for AI data centres, CARE Ratings (CareEdge Ratings) said in its rationale.

 

Demand visibility over long-term is further supported by the increasing focus of major economies on strengthening energy security, expanding interstate and cross-border pipeline connectivity, and developing alternate transportation routes in Middle East amidst continuing geopolitical uncertainties (around the Strait of Hormuz), the rating agency said.

 

Consolidated order book stood at ₹25,750 crore as on July 27, 2026, provides strong revenue visibility over the next 2 years. Increased proportion of higher margin US Line Pipes orders in the consolidated order book, to be executed over FY27 and FY28, is likely to support the margin sustenance, while the optimum capacity utilization, backed by new order flows particularly in line pipes, is expected to result in continued healthy cash generation going ahead, CareEdge Ratings said.

 

Meanwhile, on August 20, 2026, Welspun Corp 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 US. The order will be executed between FY28 & FY29, the company said. 

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Jefferies initiates coverage with 'Buy with a target price of ₹3,250

As the world's largest welded line pipe producer, Welspun Corp is well positioned to benefit from a multi-year up cycle in oil & gas infrastructure spending in US and Middle East, supported by local manufacturing in both regions. Analysts at Jefferies expect a strong 33 per cent earnings per share (EPS) compound annual growth rate (CAGR) over FY26-29E led by capacity expansions, robust order book and improving mix, along with rising net cash and 23 per cent return on equity (ROE). Its 18x 1Y forward EV/EBITDA (Enterprise Value to Earnings before Interest, Taxes, Depreciation, and Amortization) is reasonable, the brokerage firm said.

 

The US energy infrastructure is in a multi-year investment phase, driven by rising LNG exports, growing power demand from data centers, and increasing associated gas production from the Permian Basin. Bloomberg estimates show cumulative US midstream capex of $240 billion over CY26-30E, 57 per cent above CY21-25 and still rising. Welspun Corp has 30 per cent market share in the US, with local manufacturing footprint and ongoing capacity expansion, positioning it well to capitalize on these investments.

 

Saudi Arabia is an attractive market for Welspun Corp given the country's strong focus on gas transmission and water infrastructure under the Vision 2030 plan. Rising localization requirements further favor domestic manufacturers. Welspun Corp is well- placed with a 22 per cent stake in Saudi-based pipe maker EPIC (contributed 20 per cent of FY26 profit after tax) and its upcoming 600ktpa capacity in a 100 per cent subsidiary in the country, analysts at Jefferies said.  Disclaimer: Views and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers' discretion is advised.