Nuvama Institutional Equities has initiated coverage on Welspun Corp with a buy rating and a target price of ₹1,028 per share, implying an upside of around 32% from the current market price of ₹779.75.
In its initiation note, Nuvama Institutional Equities said Welspun Corp has built a strong position in the metal pipes segment by expanding across the value chain, supported by a robust and diversified capacity base. The brokerage expects the company to be a key beneficiary of infrastructure growth in India, while also playing an important role in energy independence efforts in the United States.
Nuvama highlighted that Welspun Corp is now looking beyond its core pipes business and aims to expand into building material products, with Sintex expected to emerge as a frontline growth driver. The brokerage believes this strategic diversification, combined with the company’s scale and execution capabilities, will help create a more balanced and resilient business profile over the medium term.
The brokerage further noted that Welspun Corp is in the midst of a ₹5,500 crore capital expenditure programme through FY27, which is expected to support capacity expansion, product diversification and efficiency improvements. As a result, Nuvama expects the company to report improving margins and return ratios by FY28.
With all business segments performing well, Nuvama estimates Welspun Corp’s revenue and EBITDA to compound at 21% and 22%, respectively, over FY25–FY28, underpinned by strong order visibility, operating leverage and disciplined capital allocation.
Disclaimer: This article is for informational purposes only. The views expressed are those of the brokerage cited and do not constitute investment advice or a recommendation to buy or sell the stock.