Synopsis: Nuvama initiates Welspun Corp with a BUY of target Rs. 1,028 with 26% upside, citing strong earnings growth, capex-led expansion, margin improvement, Sintex turnaround, and a record Rs. 23,500 crore order book offering multi-year revenue visibility.
This company is among the world’s largest manufacturers of large-diameter pipes and also produces BIS-certified steel billets, TMT rebars, ductile iron pipes, and stainless steel pipes, tubes, and bars is now in the spotlight after Nuvama gave a BUY target with 26% upside.
With a market capitalisation of Rs. 21,487 cr, the shares of Welspun Corp Ltd closed at Rs. 814.55 per share, increasing 2.2% in today’s market session, making a high of Rs. 821, up from its previous close of Rs. 803.10 per share.
Nuvama on Welspun Corp Ltd
Nuvama has initiated coverage on Welspun Corp with a ‘BUY’ rating and a target price of Rs. 1,028, which is 26% upside from current levels. The brokerage expects strong growth over the medium term, projecting the company’s top line and EBITDA to compound at around 21–22% during FY25–FY28E, driven by capacity expansion, operating leverage, and better execution across businesses.
Welspun Corp is expected to start reaping the benefits of its Rs. 5,500 crore capex program planned till FY27E. This investment cycle is likely to enhance manufacturing capabilities, improve efficiencies, and support higher volumes across its key product segments, laying the foundation for sustained earnings growth.
Margins and return ratios are also projected to improve meaningfully. Nuvama expects EBITDA margins to move over 12% and return ratios to improve by 300 basis points to 22% by FY28E, supported by better product mix, operating leverage, and normalization in input costs.
Additionally, a turnaround in Sintex is anticipated to further aid profitability. These segments, which have been dragged in the past, are expected to contribute positively as restructuring efforts and operational improvements take effect.
The company’s growth outlook is strengthened by a robust order book of Rs. 23,500 crore as of the end of Q2 FY26, the highest in over a decade. This provides strong revenue visibility across key geographies such as the US, Saudi Arabia (KSA), and India, positioning Welspun Corp well for sustained execution and earnings momentum in the coming years.
About the company
Welspun Corp Ltd, part of the $5 billion Welspun World, is a global leader in pipe solutions and building materials, known for executing some of the world’s most challenging pipeline projects. It has expanded into DI pipes with a state-of-the-art integrated greenfield facility at Anjar, Gujarat, featuring advanced steelmaking infrastructure.
The company reported strong YoY growth in Sep 2025, with sales up 32% to Rs. 4,374 crore, EBITDA rising 48% to Rs. 591 crore, and net profit increasing 57% to Rs. 444 crore. EPS grew 52% to Rs. 16.68, reflecting robust operational performance.
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