Welspun Corp
CMP 225/-
Investment Rationale
Welspun Corp Limited is part of the $ 1.5 billion Welspun Group and is Asia's (X-Japan) largest high grade SAW pipe manufacturer with the one stop solution for all kind of transportation pipes. It manufactures LSAW, HSAW and ERW pipes and is also having coating facilities at its plant located in Anjar and Dahej in Gujarat. Welspun is integrated backard as it has 1.5 mn. tpa. 'Plate cum Coil Mill' at Anjar in Gujarat.
Welspun had an order book of over Rs66 bn and is expected to grow as the global capex cycle picks up in coming quarters.
Recommendation:
The capacity ramp up and backward integration will lead to better earnings outlook for the company. Stronger order book is providing better earnings visibility.
We look forward to price target of Rs 260-270 in medium term, BUY.
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