Welspun Corp Ltd. share price target

Steel Foundations for Sustainable Growth

debt level to INR 1,969mn from INR 2,856mn previous year and management is confident to be zero Face Value (INR) net debt by year end. Over sale on PCMD business, parties to the agreement are in advance stage of seeking approval from regulatory authorities and timeline for closing of deal would be assessed post...

Welspun Corp (WCL) is a leading global manufacturer of large diameter pipes with an installed capacity of 2.4 Mn tonnes. With the execution and addition of the latest order of 180KT, the company order book at the start of FY20 now stands at 1.66 MT (in terms of revenue Rs141 bn), to be executed over next 15-18 months. At the end of FY19, WCL has entered into an agreement to sell PCMD division and 43MW power plant, at a consideration of Rs9.4 bn, this will make balance sheet further leaner, post the completion of the transaction i.e. by the end of Dec'19. With the leaner balance sheet...

Welspun Corp (WCL) is a leading global manufacturer of large diameter pipes with an installed capacity of 2.4 Mn tonnes. Given its presence in USA, Saudi Arabia and India, we believe that, the company is better placed compared to its peers in terms of tapping the global market opportunity of over US$400 bn. At the end of Feb'19, WCL's order book stood at Rs145 bn, to be executed over the next 15-18 months, thereby providing strong revenue visibility. We expect Welspun Corp to register growth of ~11% CAGR in revenue during the FY18FY21E period, while PAT is expected to grow at 31% CAGR during the same period, on back of improvement in operating performance and decline in interest...

We met Welspun Corp (WLCO) management for discussing the near- and medium-term outlook for the welded pipe industry in the key geographies the US, the Middle East, and India. Management was upbeat in its commentary and seemed confident of growth prospects across the three regions, especially the US, in the next 3-4 years. This marks a visible change from the prior years (i.e., FY11-18) during which while one geography reported robust earnings, the other two used to report relatively poor performance, impacting the profitability overall. This strange occurrence used to adversely affect WLCO's blended operational performance, resulting in poor operational return metrics...