Growing Demand For Water Transmission Lines; 512 Crore Order From Saudi Arabia; Focus This Share
Welspun Corp (NSE: WELCORP) has got 512 contracts from Saudi Arabia. Despite this news, the company’s shares are falling today.
In early trade, Welspun Corp was trading at Rs 525.15, down more than 2 percent and closed at Rs 518. Shares of Welspun Corp had closed 1.88% higher at ₹534 last Friday.
If we look at today’s fall, it has jumped 175 percent in the last year. However, it has fallen by about 8 percent so far this year.
There has been an increase of about 72 percent in the last six months. The order comes just days after Welspun Corp informed the exchanges.
EPIC has announced a mutual agreement with Saudi Aramco to stop and cancel contracts worth ₹339 crore.
No Impact On EPIC:
However, Welspun has stated that this will not have any impact on EPIC, as the contract was not included in the production schedule of EPIC during the current financial year and the raw material procurement for the contract is yet to be done.
EPIC is the world’s largest manufacturer of spiral submerged arc weld pipes.
The company said EPIC is well-positioned to secure further projects in both water, oil, and gas sectors.
“The cancellation does not affect operating plans during the scheduled period,” Welspun Corp announced.
The cancelled contracts comprise 6 percent of the total awards given through Saudi Aramco, amounting to more than 6,000 crores.
“We’re very optimistic about the prospects for the future of EPIC, our sister company. EPIC which is helped through diversification in the energy mix at Aramco along with the increasing demands for transmission of water lines,” Welspun stated in an announcement on the exchange.
Welspun Corp informed the exchanges on Friday that it has secured line pipe contracts worth more than 2,039 crore in India and the US from February 6 through March 22.
About Welspun Corp Ltd Company
Welspun Corp Limited is a manufacturer of steel and plastic products. It is the world’s largest manufacturer of large-diameter pipe.
The company produces BIS-certified Steel Billets (Thermomechanically Treated), Ductile Iron Pipes (DI), welded line pipes, Stainless Steel Pipes, and Tubes & Bars.
The company’s product line includes alloys, stainless steel, carbon steel pipes, water tanks, and ductile Iron.
Technology is used to enhance the capabilities of the company, which offers comprehensive pipe solutions and ancillary products.
The total operating revenue of the company is Rs 6916.67 Crores, and its equity capital is Rs 130.77 Crores.
Fundamental Analysis of Welspun Corp Ltd
| Market Cap | ₹ 13,600 Cr. |
| Current Price | ₹ 518 |
| 52-wk High | ₹ 625 |
| 52-wk Low | ₹ 186 |
| Stock P/E | 12.6 |
| Book Value | ₹ 193 |
| Dividend | 0.96 % |
| ROCE | 6.42 % |
| ROE | 3.21 % |
| Face Value | ₹ 5.00 |
| P/B Value | 2.70 |
| OPM | 9.68 % |
| EPS | ₹ 41.2 |
| Debt | ₹ 1,989 Cr. |
| Debt to Equity | 0.39 |
Welspun Corp Ltd Share Price Target 2024 To 2030
| Year | 1st Target | 2nd Target |
| 2024 | ₹550 | ₹585 |
| 2025 | ₹600 | ₹648 |
| 2026 | ₹650 | ₹730 |
| 2027 | ₹750 | ₹805 |
| 2028 | ₹810 | ₹835 |
| 2029 | ₹840 | ₹860 |
| 2030 | ₹900 | ₹1100 |
Welspun Corp Ltd Shareholding Pattern
| Promoters Holding | |
| Dec 2022 | 49.90% |
| Mar 2023 | 49.99% |
| June 2023 | 49.99% |
| Sept 2023 | 49.96% |
| Dec 2023 | 49.96% |
| FII Holding | |
| Dec 2022 | 7.96% |
| Mar 2023 | 7.27% |
| June 2023 | 7.78% |
| Sept 2023 | 9.42% |
| Dec 2023 | 10.56% |
| DII Holding | |
| Dec 2022 | 11.04% |
| Mar 2023 | 11.43% |
| June 2023 | 10.96% |
| Sept 2023 | 11.53% |
| Dec 2023 | 11.23% |
| Govt. Holding | |
| Dec 2022 | 0.01% |
| Mar 2023 | 0.01% |
| June 2023 | 0.01% |
| Sept 2023 | 0.02% |
| Dec 2023 | 0.00% |
| Public Holding | |
| Dec 2022 | 31.10% |
| Mar 2023 | 31.29% |
| June 2023 | 31.28% |
| Sept 2023 | 29.05% |
| Dec 2023 | 28.22% |
| Others Holding | |
| Dec 2022 | 0.00% |
| Mar 2023 | 0.00% |
| June 2023 | 0.00% |
| Sept 2023 | 0.03% |
| Dec 2023 | 0.03% |
Welspun Corp Ltd Share: Last 5 Years’ Financial Condition
To gain a better understanding of how the market is performing, let’s look at the outlook of this share in the previous years.
However, investors should be aware of the risks and the market conditions before making any investment decision.
Last 5 Years’ Sales:
| 2019 | ₹ 8,953 Cr |
| 2020 | ₹ 9,957 Cr |
| 2021 | ₹ 7,153 Cr |
| 2022 | ₹ 6,505 Cr |
| 2023 | ₹ 16,949 Cr |
Last 5 Years’ Net Profit:
| 2019 | ₹ -22 Cr |
| 2020 | ₹ 654 Cr |
| 2021 | ₹ 827 Cr |
| 2022 | ₹ 444 Cr |
| 2023 | ₹ 1,089 Cr |
Last 5 Years’ Debt-To-Equity Ratio:
| 2019 | 0.45 |
| 2020 | 0.24 |
| 2021 | 0.22 |
| 2022 | 0.37 |
| 2023 | 0.7 |
Last 10 Years’ Profit Growth:
| 10 Years: | 11% |
| 5 Years: | 0% |
| 3 Years: | -39% |
| Current Year: | 434% |
Last 10 years’ Return on Equity (ROE):
| 10 Years: | 7% |
| 5 Years: | 10% |
| 3 Years: | 10% |
| Last Year: | 3% |
Sales Growth Over 10 Years:
| 10 Years: | 1% |
| 5 Years: | 9% |
| 3 Years: | -1% |
| Current Year: | 120% |
Conclusion
This article is a complete guide about Welspun Corp Ltd Share.
These information and forecasts are based on our analysis, research, company fundamentals and history, experiences, and various technical analyses.
Also, We have talked in detail about the share’s future prospects and growth potential.
Hopefully, these informations will help you in your further investment.
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