Buy Welspun Corp Ltd For Target Rs. 1,150 By Geojit Financial Services Ltd
Fundamental View
Welspun Corp Limited (WCL), part of the Welspun Group, is a global leader in large-diameter line pipes and infrastructure products. Founded in 1995 and headquartered in Mumbai, it operates in steel and plastic segments with facilities in India, the U.S., and Saudi Arabia, and a production capacity exceeding 2.5 million metric tons annually.
* In Q2FY26, Welspun Corp delivered a 32% YoY revenue growth to Rs.4,374cr, with EBITDA rising 48% YoY to Rs.591cr and margin expanding to 13.5% from 12.1% in Q2FY25; PAT surged 57% YoY to Rs.443.5cr, reflecting robust execution, operational efficiency, and cost discipline.
* Welspun Corp’s U.S. subsidiary secured $715 million in line pipe orders for natural gas and NGL (Natural Gas Liquids) projects, ensuring business visibility through FY28. With a record Rs.23,500cr order book and rising demand from AI-driven data centers, the company is well-positioned in the U.S. energy infrastructure value chain.
* Welspun Corp reduced its debt significantly over the years, achieving a five-year low debtto-equity ratio of 0.2x in H1FY26, supported by strong cash reserves and asset sales, resulting in a net cash position.
* Welspun Corp is leveraging global energy infrastructure demand with a strong order pipeline and expanding margins. Despite substantial investments, it maintains financial strength and operational efficiency. Supported by improving returns, disciplined cost control, strategic global expansion, and enhanced profitability, the stock trades at a forward P/E of ~15x (per market consensus), offering attractive value.
Technical View
* The stock registered a decisive breakout above the downward-sloping trendline on strong volumes, signaling renewed bullish momentum. Post-breakout, it retested the trendline support and rebounded sharply, confirming the validity of the breakout and a shift in trend bias toward the upside.
* Prices are trading well above the 21, 50, and 100-day SMAs, reaffirming a strong bullish structure.
* The RSI also mirrored the price action, retesting its trendline support and currently hovering near the 60 level, indicating a healthy consolidation within bullish territory. The MACD line crossing above the signal line confirms a bullish crossover, supporting continued upward momentum.
* We recommend a long position in the Rs.920–Rs.940 range, maintaining a stop-loss at Rs.830, with an upside target of Rs.1,150.
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