Welspun Corp Ltd | Latest market updates

Welspun Corp’s Associate EPIC Secures Rs 133 Crore Contract with Maramer Contracting Company

Welspun Corp’s associate EPIC wins a Rs 133 crore contract with Maramer Contracting Company for steel pipes. The financial impact will reflect in Q2 and Q3 of FY 2024/2025.

The Indian stock market had a mixed day on Monday, with the Nifty 50 closing down by 0.15% and the Sensex slightly up by 0.02%. The NSE benchmark, Nifty 50, opened on a positive note but then experienced profit booking, reaching a high of 22,588.80. Throughout the trading day, the Nifty oscillated between gains and losses without making a decisive move.

Amidst the market’s fluctuations, Welspun Corp Ltd. saw a notable development. Despite ending the day down by 3.02% at Rs 583 due to profit booking, news emerged that could have a significant impact on the company’s future performance.

East Pipes Integrated Company Signs Major Contract

Welspun Corp’s associate company, East Pipes Integrated Company for Industry (EPIC), a leading manufacturer of HSAW pipes in Saudi Arabia, announced a contract with Maramer Contracting Company. This deal, valued at over SAR 60 million (approximately Rs 133 crore), involves the manufacturing, coating, and supply of steel pipes. The contract has a six-month duration, and its financial impact will be seen in the second and third quarters of the 2024/2025 financial year.

EPIC has built a strong reputation in Saudi Arabia, with fully integrated manufacturing facilities and a proven track record in executing large-scale orders. The company’s focus on quality and customer satisfaction has positioned it well for continued success, aligning with Saudi Arabia’s Vision 2030.

Welspun Corp’s Global Reach

Welspun Corp Ltd. is the flagship company of the Welspun group, founded by Mr. B K Goenka in 1995. It manufactures a variety of line pipes across its plants in India (located in Anjar, Gujarat; Bhopal, Madhya Pradesh; and Mandya, Karnataka), the US (Little Rock, Arkansas), and Saudi Arabia (Dammam). The company’s products include longitudinal, spiral, and high-frequency induction-welded pipes. Welspun Corp also has coating facilities in these countries.

The company operates in the US through its 100% subsidiary, WPI, and in Saudi Arabia through its step-down subsidiary, EPIC (previously Welspun Middle East Pipe Company LLC, which merged with Welspun Middle East Pipe Coating Company LLC in fiscal 2021). Additionally, it has a 100% subsidiary, Welspun Tradings Ltd, which functions as a bidding company in the global market.

Stock Performance

Despite Monday’s dip, Welspun Corp’s stock has been on a strong upward trajectory. In the past 12 months, the stock has gained 153.27%, and over the past three years, it has surged more than 300%. These gains reflect the company’s consistent performance and its position as a key player in the global line pipe industry.

Disclaimer: This post 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.