scorecardresearchWelspun Corp stock at 12-year high; up 130% from 52-week low

Welspun Corp stock at 12-year high; up 130% from 52-week low

Updated: 22 Sep 2022, 10:40 AM IST
TL;DR.
In a regulatory filing on Saturday, Welspun Corp said that it has secured an order for a carbon capture pipeline project in the United States. This order is for the supply of 785 miles (1,256 KM) or 100,000 MT (approximately) of high-frequency induction welding (HFIW) pipes.
Welspun Corp reported a 47.70 percent increase in its standalone net profit to  <span class='webrupee'>₹</span>80.5 crore for the first quarter ended June.&nbsp;

Welspun Corp reported a 47.70 percent increase in its standalone net profit to 80.5 crore for the first quarter ended June. 

Welspun Corp stock ended in green for the third consecutive trading session. On Wednesday's intraday the stock closed at a higher of 3.87% at 283.35. After nearly 12 years, on September 20, the stock surpassed its previous high of 274, attained in July 2008.

The stock gained nearly 14.17 percent in the last three trading sessions. On Monday, the stock surged 7.93 percent, and on Tuesday, it rallied 2.5 percent. In one year, the stock has risen from 127.35 to 283.35 levels, generating a multi-bagger return of 122.49% while the Sensex has only increased by 0.77 percent. Further, over the last three years, the market price of the stock has zoomed by 113.45 percent.

The stock touched a 52-week-high of 286.5 on 21st September 2022 and a 52-week-low of 123.10 on 29 October 2021 indicating at the current level the stock is trading 130.17% higher than its 52-week low.

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Stock Price Chart of Welspun corp

On the technical charts, the stock is trading 44% higher than its 200-DMA. The Relative Strength Index (RSI) of the stock stands at 68.1. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.

On Tuesday, the company announced that it acquired the entire share capital of Nauyaan Shipyard Private Ltd. The company intends to make it a wholly owned subsidiary and a special purpose vehicle for investment in the field of Marine Fabrication. Currently, Nauyaan Shipyard does not have any material assets or liabilities, IIFL said.

In a regulatory filing on Saturday, the company said that it has secured an order for a carbon capture pipeline project in the United States. This order is for the supply of 785 miles (1,256 KM) or 100,000 MT (approximately) of high-frequency induction welding (HFIW) pipes and would be used for transporting captured carbon dioxide.

The pipes for this order will be produced from Welspun’s Little Rock plant in the US and the same will be executed in FY 23‐24, it added.

Welspun Corp reported a 47.70 percent increase in its standalone net profit to 80.5 crore for the first quarter ended June, up from 54.5 crore in the previous year's April-June quarter. Revenue from operations increased 94.23 percent to 1,463.2 crore in the June quarter, compared to 753.3 crore in the same period last fiscal.

Welspun Corp is engaged in the business of Production and Coating of High-Grade Submerged Arc Welded Pipes, Hot Rolled Steel Plates, and Coils. It is the second largest manufacturer of large-diameter pipes in the world. It is the flagship company of Welspun Group. The company operates a 1.65 mtpa plant in Anjar, Gujarat, which is being increased to 2.1 mtpa.

FIIs raised their stake in the company to 23.34 percent in the June quarter, up from 14.59% in the previous quarter. On the other hand, mutual funds also raised their holdings, from 9.3 percent to 10.06 percent in the same time period. The promoters hold 50% of the shares in the company. The company's regular shareholders hold 30.47 percent of it.

An average of 02 analysts polled by MintGenie have a 'buy' call on the stock.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.

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First Published: 22 Sep 2022, 10:40 AM IST