Welspun Corp stock hits all time high on bagging two new large orders in US

Shares of Welspun Corp hit an all time high of Rs 824.50 per share, rising 4.4 per cent on the BSE in Monday’s intraday trade. Welspun Corp share price surged after the company on Saturday said that it has secured two new large orders in the US.

 

“We are pleased to announce receipt of additional two large orders in the USA, one each for HSAW and HFIW pipes, for supply of coated pipes for Natural Gas Pipeline Projects. Our outlook for the USA market remains extremely positive for the next couple of years and Welspun is fully poised to benefit from more opportunities in the time to come,” the company said in an exchange filing. 

 

With addition of these two new orders, the value of the cumulative orders received by the company’s USA plant in the ongoing third quarter of financial year 2024-25 (Q3FY25) exceeds Rs 7,000 crores.  

 

The company stated that the execution of these orders will take place during FY25 and FY26.

 

In the recently concluded second quarter of financial year 2024-25 (Q2FY25), Welspun Corp reported a net profit of Rs 287 crore for the quarter, marking a 26.3 per cent decline from Rs 386.57 crore in the same period last year. The profit drop was attributed to lower revenue and external market pressures.

 

Welspun's consolidated revenue for the quarter ending September 30 was Rs 3,364 crore, down 18.6 per cent from Rs 4,059.45 crore in the previous year.

 

The company reported an earnings before interest, tax, depreciation and amortisation (Ebitda) of Rs 462 crore for Q2 FY25, with an Ebitda margin of 14 per cent.

 

On the equities front, Welspun Corp’s stock has outperformed the market year to date as it has risen 41 per cent, while gaining 49 per cent in the last one year. In comparison BSE Sensex has risen 12 per cent year to date and 16 per cent in a year. 

 

The company has a total market capitalisation of Rs 21,216.20 crore. Its shares are trading at a price to earnings multiple of 49.07 times and at an earning per share of Rs 16.48. 

 

At 10:28 AM; the shares of the company were trading 2.44 per cent higher at Rs 808.70 a piece. By comparison, the BSE Sensex was down 0.28 per cent at 81,482.20 level.