Heavy buying was witnessed in this pipe manufacturing company which gained over 300% in 3 years; do you hold it?
Sub-topic: The company’s subsidiary Sintex BAPL has received approval from the Odisha government to invest Rs 479 crore in a new manufacturing unit in Sambalpur.
Shares of Welspun Corp Limited gained over 5% today. The stock has witnessed heavy buying activity from investors. The company has announced impressive quarterly results. Welspun Corp’s subsidiary Sintex BAPL has received approval from the Odisha government to invest Rs 479 crore in a new manufacturing unit in Sambalpur. The plant will produce CPVC, UPVC, SWR, Agri Pipes, PVC fittings and Plastic tanks, with an annual capacity of 37,520 MT.
Welspun Corp Limited has delivered multi-fold returns to its shareholders in the last three years. During this period, the company’s share price surged from Rs 134.75 on December 11, 2020, to Rs 562.60 on December 05, 2023, representing an increase of over 300% in a three-year holding period. An investment of Rs 1 lakh in this company’s shares three years ago would have grown to Rs 4 lakh today.
Welspun’s associate company, EPIC, has secured a contract worth over SAR 440 million (approximately Rs 1000 crore) from Saudi Aramco. The contract is for the manufacture and supply of large-diameter steel pipes and will be completed over 13 months. This is in addition to a previous contract worth SAR 1.8 billion (around Rs 4,000 crore) that was announced in May 2023.
EPIC is a leading manufacturer of Helical Submerged Arc Welded (HSAW) pipes in Saudi Arabia. Its well-equipped facilities, successful track record, and focus on quality and customer satisfaction have positioned it well to secure further projects in the water and oil and gas sectors. This aligns with Saudi Arabia’s Vision 2030 objectives.
Welspun Corp Limited is one of the flagship companies of Welspun Group. It is a leading manufacturer of large-diameter pipes globally, offering a one-stop solution for all line pipe-related requirements with its wide range of high-grade line pipes. These pipes are used for offshore and onshore transmission of oil, gas and water. It is among the Largest Welded Line Pipe manufacturing companies in the world.
Today, the stock opened at Rs 537.15, with a high and low of Rs 568.15 and Rs 534.55, respectively. The stock closed trading at Rs 561.70, which increased by 5.40%. The stock has a 52-week high of Rs 568.15 and a 52-week low of Rs 177.85. The company has an ROCE of 6.42% and an ROE of 3.21%, with a market capitalization of Rs 14,698 crore.
The stock has shown impressive growth, and investors should keep a close eye on this stock.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.