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Stock jumps 3% after signing contracts worth ₹ 525 Cr for steel pipes

Published 07-08-2024, 01:11 pm
Updated 07-08-2024, 04:16 pm
Stock jumps 3% after signing contracts worth ₹ 525 Cr for steel pipes
WGSR
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The shares of the pipeline solution provider gained up to 3.4 percent after its associate company signed multi-contract for manufacturing, supply of steel pipes, and coating worth Rs 525 crore.

With a market capitalization of Rs 17,002.66 crore, the shares of Welspun Corp Limited (NS:WGSR) were trading at Rs 651.25 per share, increasing around 3.06 percent compared to the previous closing price of Rs 631.90 apiece.

Is Welspun Corp a buy or sell? What is its Fair Value? What are the company's health parameters? What are the positive and negative factors driving the company -- ProTips? Know all the answers on the company's overview page here.

Reason for rise:-

The shares of the company have seen positive movement after Welspun Corp Limited’s associate company, East Pipes Integrated Company for Industry (EPIC), signed a multi-contract with different EPC contractors for manufacturing, supplying steel pipes, and coating worth Rs 525 crore.

EPIC is Saudi Arabia’s main maker of HSAW pipes. The company’s fully integrated manufacturing facilities and customer-centric approach make it a top supplier in the Saudi market, supporting the Kingdom’s strategic objectives under Vision 2030.

Financial Performance:-

Examining the company’s financial performance, revenue magnified by 10 percent from Rs 4,070 crore in Q4FY23 to Rs 4,461 crore in Q4FY24, but during the same period, net profit magnified multifold times by 20 percent from Rs 240 crore to Rs 287 crore.

Order Book & footprint:-

The company has a healthy order book of 328,000 MT resulting in its production capacity booked for the next 3 quarters WCL is now further enhancing its Anjar capacity from 500,000 MT to 600,000 MT without any additional capex.

WCL is one of the world’s major producers of large-diameter pipes, with a worldwide footprint spanning six continents and fifty nations. It provides crucial specialized solutions for both onshore and offshore applications.

Company profile:-

Welspun Corporation Limited manufactures steel and plastic goods. The company produces and coats high-quality submerged arc-welded pipes, hot-rolled steel plates, and coils. It provides services for welded line pipes, ductile iron pipes, stainless steel pipes, and others.

Written by:- Abhishek Singh

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