Rs 8,508 crore order book: This multibagger iron & steel company bags largest order worth Rs 2,400 crore from USA
The stock is up by 90 per cent in just 1 year and gave multibagger returns of 420 per cent in 3 years.
Welspun Corp Limited has been awarded a substantial order worth approximately Rs 2,400 crore from the USA for supplying coated HSAW pipes for a natural gas pipeline project. The order will be executed over the course of fiscal years 25 and 26. This significant win solidifies Welspun's reputation and establishes its dominance in the USA market. The company's prospects for the USA market remain highly optimistic, with several other projects in the pipeline where they are actively participating and well-positioned to secure additional orders.
Earlier, the company achieved another significant milestone by securing a prestigious order from the Middle East for the supply of coated LSAW pipes and bends for sour service. This substantial order bolsters Welspun's position in the global pipeline market and adds to its growing order book. The cumulative value of line pipe orders received in India and the USA now reaches Rs 1,348 crore since the company's last disclosure on July 24, 2024. The execution of these orders is expected to take place during FY25 and FY26.
In a separate development, Welspun Corp Limited's wholly owned subsidiary, Sintex-BAPL Limited (SBAPL), has agreed to divest its step-down subsidiary, Sintex Logistics LLC (SLL). This strategic decision aligns with SBAPL's focus on core business areas and aims to optimize its portfolio. The transaction involves the sale of 100 per cent membership interest in SLL to Bright Brothers LLC, a wholly-owned subsidiary of Bright Brothers Limited. While SLL is a non-strategic asset for SBAPL, it's important to note that this transaction is not material for Welspun Corp Limited. The completion of the sale is subject to customary conditions precedent and closing date deliverables. Upon completion, SLL will cease to be a wholly owned step-down subsidiary of Welspun Corp Limited.
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About The Company
Welspun Corp Limited is a flagship company of the Welspun Group, one of the world's leading line pipe manufacturers. Known for its advanced manufacturing capabilities and innovative approach, Welspun specializes in producing large-diameter pipes used in various industries, including oil and gas. With a strong focus on sustainability and technology, Welspun Corp is committed to providing solutions that meet the stringent requirements of its global clientele. Its products are integral to major infrastructure projects worldwide, making it a key player in the development and maintenance of critical energy and resource transportation systems.
The company has a market cap of over Rs 19,000 crore and has been maintaining a healthy dividend payout of 36.7 per cent. The company's order book stands at Rs 8,508 crore as of June 30, 2024. The stock is up by 90 per cent in just 1 year and gave multibagger returns of 420 per cent in 3 years. Investors should keep an eye on this mid-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.