Welspun Corp share price soars 4% to record high following major US pipeline contracts | Stock Market News

Welspun Corp share price surged over 4% to touch all time high during Monday’s trading session, following the announcement of two significant orders for the supply of HSAW-coated pipes for natural gas pipeline projects in the United States (US). These contracts were secured by the company’s plant in the US, pushing the total value of orders received by the unit to over ₹7,000 crore as of Q3 FY25. This positive news reflects the company’s strong position in the market and its capability to secure large contracts in the energy sector.

The company stated in an exchange filing that the execution of these orders will take place during FY25 and FY26. These wins further solidify their leading and dominant market share in the US oil and gas transmission sector.

Additionally, the company’s outlook for the US market remains very positive for the next couple of years, and Welspun is well-positioned to capitalize on upcoming opportunities.

In a recent interview with CNBC-TV18, Welspun Corp’s CEO, Vipul Mathur, expressed strong optimism regarding the business landscape during Trump’s potential second term. He believes that the US business outlook is poised for stability and growth over the next 6 to 8 quarters. Mathur highlighted that despite the company’s capital expenditure plans, they aim to maintain a net debt/EBITDA ratio between 0.5x and 1x

“Soft launch for the pipe biz has been completed, we are poised to expand and strengthen this biz. Asset turn would be atleast 2x for Syntex, Mid-teens OPM,” said Vipul Mathur in an interview with CNBC-TV18.

Welspun Corp reported a nearly 27% decline in consolidated net profit, amounting to ₹282.96 crore for the September quarter, primarily due to a decrease in income. In comparison, the company had posted a net profit of ₹386.57 crore for the July-September 2023 period, according to an exchange filing. Total income fell to ₹3,364.23 crore, down from ₹4,161.41 crore in the same quarter of the previous fiscal year.

Welspun Corp share price today

Welspun Corp share price today opened at ₹814.95 apiece on the BSE, the stock touched an intraday high of ₹824.50 per share, and an intraday low of ₹798.45 apiece.

“Welspun Corp share price has opened with a gap up, surpassing its previous swing high of 806 reached in November. A sustained close above this level would be positive for the bulls, potentially triggering the next leg of the uptrend towards 835-850. For the time being, the bullish gap around 790 serves as immediate support,” said Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.