LIC-Backed Pipes Manufacturer Secures Two Major Orders Worth Rs 1,300 Crore in USA – FIIs and DIIs Increase Stake in September 2024!

Rakesh Deshmukh
LIC-Backed Pipes Manufacturer Secures Two Major Orders Worth Rs 1,300 Crore in USA – FIIs and DIIs Increase Stake in September 2024!

The company’s shares have delivered impressive returns of over 220 per cent to its shareholders in just 2 years.

WCL is one of the largest manufacturers of large-diameter pipes globally. The company also manufactures BIS-certified steel billets, TMT (Thermo-Mechanically Treated) rebars, ductile iron (DI) pipes, stainless steel pipes, and tubes and bars. The company acquired Sintex-BAPL, a market leader in water tanks and other plastic products, to expand its building materials portfolio.

Welspun Corp Ltd has announced the receipt of two significant orders in the USA, collectively valued at approximately Rs 1,300 crore, for the supply of coated HSAW pipes for natural gas pipeline projects. The execution of these orders is scheduled for FY26. This achievement further solidifies our leading position in the U.S. oil and gas market. We maintain a highly positive outlook for this market and have also engaged in several additional projects, positioning ourselves favourably in 1-2 more large projects.

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Today shares of Welspun Corp Ltd closed at around Rs 729.80 per share. The company’s current market capitalization stands at Rs 19,146 crore. Additionally, the shares have delivered an impressive return of over 60 per cent in the past year.

As per the Quarterly Results, in June FY25, Welspun Corp Ltd recorded a revenue of Rs 3137 crore representing a de-growth of 22.90 per cent YoY from Rs 4069 crore. The operating profit for the period stood at Rs 374 crore along with an operating profit margin of 12 per cent. The net profit for the quarter stood at Rs 284 crore compared to a profit of Rs 168 crore last year same quarter. Looking at the annual performance, the company generated a revenue of Rs 17340 crore in FY24. The operating profit for FY24 was Rs 1561 crore with a net profit of Rs 1136 crore compared to a net profit of Rs 199 crore in FY23.

Both the FIIs and DIIs increase their stake in the recent quarter!

Investors must keep this Small-Cap company on their radar.

Disclaimer: The article is for informational purposes only and not investment advice.

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