Nuvama International Equities raised the target price to Rs 1,082 from Rs 1,043 on Welspun Corp, looking at an upside of 33%. It maintained its ‘Buy’ rating. The broker’s house said that the company’s growth story should continue with consistent, strong order execution, scaling new divisions and capacity expansion across geographies.
Strong order book and growth visibility
Welspun Corp has a robust total order book of Rs 24,700 crore, which includes a recent Rs 1,000 crore order win in the US. This substantial order book, even after Q4 dispatches, provides the company with a “clear runway” for long-term growth visibility.
Resilient West Asia operations
Despite disturbances, the company’s West Asia operations (EPIC, Saudi Arabia) remain unaffected. Furthermore, the construction of its new LSAW/DI pipe plant in Saudi Arabia is progressing without delay, with commencement expected in H1FY27. EPIC operations in Saudi Arabia, and more than 60% of the order book is focused on the water segment.
Strategic diversification
The company has transitioned from being a cyclical oil and gas pipe manufacturer to a diversified player. Key milestones include the expansion of its Ductile Iron (DI) pipe plant, entry into the B2C space via the acquisition of Sintex-BAPL (water storage tanks), and expansion into TMT rebars and stainless steel products.
Strong demand in US and India
The US market is showing strong demand driven by natural gas pipelines and data centres, keeping the order book full for the next two years. Domestically, the Jal Jeevan Mission is fueling strong orders for DI pipes, while the expansion of India’s City Gas Distribution (CGD) network is elevating demand for line pipes, said Nuvama.
Welspun Corp share price performance
The share price of Welspun Corp has fallen 0.5% in the last five trading sessions. The stock has declined 1% in the past one month and 5.5% in the last six months. Welspun Corp’s share price has erased 4.5% of investors’ wealth over the previous 12 months.
Welspun Corp Q3FY26
Welspun Corp’s net profit stood at Rs 453 crore in Q3FY26, down 33% year-over-year from Rs 675 crore a year back. However, it was impacted by a higher base in the same quarter of the previous year that included one-time proceeds from the sale of shares in an associate.
Its revenue from operations rose 25% YoY to Rs 4,532 crore in Q3 FY26, compared with Rs 3,614 crore in Q3 FY25.