Welspun Corp soars 8% on heavy volumes, hits new high on strong order book

Since March 3, Welspun Corp share price has surged 25 per cent from a level of Rs 697.35

Welspun Corp share price hit a new high of Rs 874.90 as it soared 8 per cent on the BSE in Thursday's intraday trade, aided by heavy volumes, on a strong order book position of about Rs 20,000 crore.

 

The stock price of the iron & steel products company surpassed its previous high of Rs 842.80, which it touched on March 12, 2025. Since March 3, i.e., in the past nine trading days, the stock has surged 25 per cent from a level of Rs 697.35.

 

At 02:01 PM, Welspun Corp shares were trading 7 per cent higher at Rs 870.25 as compared to 1.2 per cent rise in the BSE Sensex. Average trading volume on the counter jumped over three-fold with a combined 2.72 million equity shares changing hands on the NSE and BSE till the time of writing this report.

 

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On March 17, Welspun Corp announced that it is in receipt of new orders valued at Rs 2,400 crore (approx.) for the supply of coated pipes for Natural Gas Pipeline Projects in the USA.

 

With addition of these new orders, the company's consolidated order book stands at approximately Rs 20,000 crore. The execution of these orders will be largely during FY26 and FY27, the company said.

 

Earlier, on February 17, Welspun Corp had announced the receipt of new orders in the USA, including two large orders for HSAW (Helical Submerged Arc Welded) Pipes and additional orders for HFIW ((High-Frequency Induction Welded) Pipes, valued at around Rs 3,000 crore for the supply of coated Pipes primarily for Natural Gas Pipeline Projects. Execution of these orders, too, will be during FY26 and FY27, the company said.

 

Welspun Corp is among the top three manufacturers of large-diameter pipes globally and has established a global footprint across six continents and over 50 countries by delivering key customised solutions for both onshore and offshore applications. The company also manufactures ductile iron (DI) pipes and stainless steel pipes, tubes and bars.

 

Meanwhile, the management said the market outlook in the USA has improved significantly as the current government is focusing on the Oil & Gas (O&G) sector. The company's mill in the US is booked for eight quarters.

 

LSAW (Longitudinal Submerged Arc Welded) plant in India for exports is also fully booked and has been supporting improved margins. The DI Pipes segment has been steadily ramping up. With further allocation of Rs 67,000 crore on Jal Jeevan Mission, the demand is likely to remain strong, the company said.

 

The company has guided to maintain its Net Debt to Ebitda ratio below 0.5x. Improved scale across businesses, buoyed by macros, will help capitalise the operating leverage, while strong cash flows will further reduce financial leverage, according to analysts at JM Financial Institutional Securities.

 

With a focus to enhance its presence in Kingdom of Saudi Arabia (KSA), the company has announced an increase in proposed DI pipe facility's capacity from 150ktpa to 250ktpa and setting up of the 350 ktpa greenfield LSAW pipes facility in KSA at a total cost of $200 million. The plants are expected to be operational by April 2026. The US order book remains strong at 6-7 quarters with robust demand expected going ahead. EPIC has confirmed an order book of more than 2.5 years catering to both O&G and Water.