Welspun Corp shares surged as much as 6% to hit a fresh 52-week high of ₹2,437.30 per share on Thursday, following the completion of a significant block deal. The stock had previously recovered from a 6% decline in the previous session, with shares trading at ₹2,413.90 per share at 9:32 am, significantly outperforming the BSE Sensex which was trading 0.10% lower at 77,394.46. The latest move comes after a series of developments involving the company, including the recent block deal and a major order win announced earlier this month. Out of seven analysts tracking the company, six maintain a "Buy" rating and one maintains a "Hold", according to Bloomberg data. The average 12-month consensus price target of ₹2,491.33 implies an upside of 3.5% from current levels.
Financial services company Capital Group, Aberdeen Investments and domestic funds collectively bought a 2.4% stake in Welspun Corp for ₹1,433.44 crore through multiple block deals on NSE. The investors bought a total of 63 lakh shares at an average price of ₹2,275.30 per share, with the transaction executed on Wednesday. US-based Capital Group was the biggest buyer, with its affiliates acquiring 47.84 lakh shares in 14 tranches, amounting to a 1.81% stake in the company. Other buyers included Scotland-based Aberdeen Investments, mutual funds managed by Edelweiss and Quant, and Edelweiss Life Insurance Company. Welspun Investments and Commercials Ltd sold 60 lakh shares, or a 2.27% stake, while Vipul Mathur, managing director and CEO of Welspun Corp, offloaded 3 lakh shares at the same price. Following the sale, Welspun Investments and Commercials' holding fell to 0.29% from 2.56%, and the combined holding of promoters and promoter-group entities declined to 47.46% from 49.73%.
Welspun Corp announced that it had secured the largest single order in its history, valued at approximately $1.8 billion, or around ₹17,200 crore, earlier this month. The order is for the supply of pipes from the company's manufacturing facility in the United States and will be executed between FY2028 and FY2029. According to the company, the contract represents a major milestone in its global growth trajectory and strengthens its position in the global energy and infrastructure sector. The company said the order provides multi-year revenue visibility and reflects its manufacturing scale, product quality and execution capabilities. Following this order win, Welspun Corp's global order book stood at a record $4.4 billion, or approximately ₹42,100 crore.
In July, Welspun Corp reported a nearly threefold rise in consolidated net profit to ₹1,047.88 crore for the June quarter, driven by income growth. The company posted a net profit of ₹349.16 crore in the same period a year ago, according to a regulatory filing. Total income rose to ₹4,144.91 crore from ₹3,586.52 crore in the first quarter of the previous fiscal year. The strong financial performance supports the company's ability to secure major orders and provides a foundation for continued growth in the North American energy infrastructure market.
Shares of Welspun Corp had fallen more than 1.65% to ₹2,306.70 on Wednesday following the block deal announcement, with trading volumes remaining high. However, the latest gains have pushed the stock to new record highs. The stock had gained 192% year-to-date despite Wednesday's decline, significantly outperforming the Nifty 50's 6.9% decline over the same period. At the current price, the company commands a market capitalisation of around ₹59,000 crore. The record order book positions the company for long-term growth in the North American energy infrastructure market and supports its strategy of expanding global manufacturing capacity and strengthening relationships with international customers. The company's stellar long-term performance includes 156% returns over one year, 604% in three years and 1,805% in five years.
