Diversification prop up Welspun Stahl

DALAL STREET SPIKES

Welspun Gujarat Stahl Rohren scrip gained nearly six per cent to touch Rs 74.95, after reaching a high of Rs 75.6. Nearly 3.64 lakh shares were traded on the BSE.

The stock has gained by over 48 per cent over the past one month. The rise is on account of the company's plans of backward diversification. There have been reports that the company plans to about Rs 1200 crore for the same.

The company posted a net profit growth of 66.5 per cent to Rs 26.3 crore for Q1 FY07 compared with Rs 15.8 crore in corresponding previous quarter. Net sales rose 63 per cent to Rs 536 crore from Rs 328.4 crore, during the same period.