Welspun Corp
Welspun Corp
Industrial ProductsKey Fundamentals
MidcapIron & Steel ProductsIndustrial ProductsTapetide Score
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Key Insights
Strengths
1- Company has delivered good profit growth of 20.9% CAGR over last 5 years
Weaknesses
2- Stock is trading at 7.51 times its book value
- Earnings include an other income of Rs.1,078 Cr.
Growth Rate
AI Analysis — Bull vs Bear
Welspun Corp has a market capitalisation of about Rs 74,257 Cr and trades at a P/E of 30.6x and a P/B of 7.76x (8.16x by another data point). Its recent operating record is strong: sales have compounded at 20% over 3 years and TTM, profits at 119% over 3 years and 42% TTM, and ROE is 19% over both the last year and 3 years. Two things offset this: earnings include Rs 1,078 Cr of other income, and the stock is up 229% over the past year, which sets a high bar for future results.
- Profit growth has been very fast: 119% compounded over 3 years and 42% TTM, well above sales growth. That points to higher margins and operating leverage.
- Sales growth has picked up and held steady at 20% TTM, 20% over 3 years and 19% over 5 years. That is roughly double the 10-year sales CAGR of 9%, which suggests a larger business than in earlier cycles.
- Returns on capital have improved steadily. ROE rose from a 13% 10-year average to 15% over 5 years and 19% over 3 years and the last year.
- Over the longer term, profit growth of 20.9% a year for 5 years roughly tracks 19% sales growth. This suggests earnings are backed by revenue growth and are not only a one-period margin spike.
- A P/E of 30.6x looks moderate next to 3-year profit growth of 119% and TTM profit growth of 42%. If even part of that growth continues, the implied growth-adjusted multiple is low.
- The profit CAGR over 10 years is 29%, compared with 9% for sales. Profitability has improved over a full decade, not only in the recent upcycle.
- The stock has compounded at 87% a year over 5 years and 44% a year over 10 years. The market has recognised the improvement in fundamentals over a long period.
- At 7.76-8.16x book value against a 19% ROE, the valuation already assumes returns stay high. Any fall in ROE toward its 10-year average of 13% would make the book multiple hard to justify.
- Reported earnings include Rs 1,078 Cr of other income. This non-operating part raises questions about earnings quality and may overstate the 42% TTM profit growth and the 30.6x P/E-based valuation.
- The stock rose 229% over one year, far more than TTM sales growth of 20% and profit growth of 42%. Most of the return came from a higher valuation multiple, which raises the risk of the multiple shrinking again.
- The 119% 3-year profit CAGR is far above the 5-year profit CAGR of 21%, which points to a low starting base. Growth at that pace is unlikely to last, and normalised growth may be closer to 20%.
- The 10-year sales CAGR is only 9%, and the 10-year ROE is 13%. Both reflect the cyclical, order-driven nature of the pipes and infrastructure business. The current 20% growth phase may not be structural.
- The dividend yield is 0.19%, which gives little income support if the valuation falls from current levels.
- Debt-to-equity, ROCE and EPS are missing from the data provided, and the two P/B figures differ (7.76x vs 8.16x). Balance-sheet leverage and capital efficiency can't be fully checked from this dataset.
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- Promoter entity sold 2.27% stake Sep 3
Promoter-group firm Welspun Investments sold 60 lakh Welspun Corp shares (2.27%) at ₹2,275.30 on Aug 26, raising ₹1,365.18 crore. It is now sending up to ₹1,000 crore into OCDs of Indivara Realty, a related-party real estate venture with no revenue yet, which raises governance and overhang concerns.
- Rally leaves valuations stretched Sep 21
The stock is up about 250% year-to-date, about 42% in one month and about 1,990% over five years, against an 18.87% YTD gain for the Nifty Metal index. Gains this steep leave little cushion if execution slips.
- EBITDA margin slipped despite scale-up Sep 9
Revenue rose from ₹6,440 crore in FY21 to ₹16,770 crore in FY26, but EBITDA margin fell from 15.7% to 14.0%. The source article wrongly called this an improvement.
- Heavy reliance on US orders Sep 21
The two largest orders ($1.8 billion and $412.5 million) are both for US plants, including the Little Rock HFIW mill, and run through FY28-FY29. Revenue visibility therefore depends heavily on US energy capex and trade policy.
- Record ₹45,000 crore order book Sep 21
The company won its largest-ever single order, about $1.8 billion (₹17,200 crore), and Welspun Tubular separately won a $412.5 million (₹4,000 crore) HFIW pipe order, both to be executed in FY28-FY29. That lifted the global order book to ₹45,000 crore ($4.7 billion), and shares rose as much as 5.3% to ₹2,837.50.
- Blowout Q1 FY27 earnings Sep 21
Consolidated net profit rose 198.64% to ₹1,046.49 crore as revenue grew 14.91% to ₹4,081.12 crore. Quarterly EBITDA hit a record ₹756 crore (up 35% YoY) and net cash rose to ₹2,336 crore.
- Associate EPIC wins Aramco contract Sep 20
Associate company East Pipes (EPIC) won a contract from Saudi Aramco worth over SAR 771 million (about ₹2,000 crore including VAT), to be executed over six months. The financial impact is expected between Q4 FY27 and Q1 FY28.
- Growth in non-line-pipe segments Sep 9
In FY26, ductile iron (DI) pipe volumes rose 26% YoY, stainless steel bars 44% and seamless pipes 9%. Planned DI pipe capacity in Saudi Arabia is being raised from 150 to 250 KMTPA, and management says it is booked through FY28.
- Jordan pipe subsidiary approved Sep 18
The board approved Welspun Pipe Jordan PSC, a wholly owned subsidiary held through its UAE arm. This follows the Sep 2 MOU with Perma-Pipe to supply Jordan's National Water Carrier Project.
- New coatings subsidiary formed Sep 12
On Sep 11, the board of Welspun DI Pipes approved Welspun Special Coating Pvt Ltd, a step-down subsidiary for protective pipe coatings such as FBE, polyethylene and polyurethane. Incorporation still needs MCA approval.
- Investor conference and roadshow Sep 22
Welspun Corp will attend the Bharat Connect Conference on Sep 25, 2026 and run a non-deal roadshow from Sep 28 to 30, 2026.
- Order book figures don't match Sep 20
Reports cite different order book figures: ₹20,960 crore (Sep 20), ₹25,350 crore and ₹25,750 crore (Sep 9), and ₹45,000 crore after the new US orders (Sep 21). Check against company filings.
- Group firm wins ₹351 crore sewer orders Sep 20
Welspun Michigan Engineers, part of sister company Welspun Enterprises, won ₹351.24 crore of World Bank-funded Ahmedabad sewer projects. This does not directly affect WELCORP, and Welspun Enterprises shares fell 5.75% to ₹778.35.
TL;DR: Welspun Corp is executing strongly: a record ₹45,000 crore order book, a near-tripling of Q1 FY27 profit to ₹1,046 crore, ₹2,336 crore of net cash, and fast growth in its DI pipe, stainless steel and Saudi businesses. The main risks are a stretched valuation after a 250% YTD run, the promoter group's 2.27% stake sale with proceeds going to a related-party real estate venture, slightly lower long-term margins, and heavy reliance on US orders. The fundamental trend is improving, with revenue visibility now extending into FY29. Going forward, the stock will likely depend more on smooth execution at the US plants and any further promoter selling than on new order wins.
Quarterly Results
| Particulars | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 4,069 | 4,059 | 4,750 | 4,461 | 3,137 | 3,302 | 3,614 | 3,925 | 3,551 | 4,374 | 4,532 | 4,313 | 4,081 |
| Expenses | 3,712 | 3,660 | 4,287 | 4,131 | 2,763 | 2,902 | 3,179 | 3,465 | 3,026 | 3,783 | 3,917 | 3,809 | 3,389 |
| Operating Profit | 357 | 400 | 463 | 330 | 374 | 400 | 434 | 460 | 525 | 591 | 616 | 504 | 692 |
| OPM % | 9% | 10% | 10% | 7% | 12% | 12% | 12% | 12% | 15% | 14% | 14% | 12% | 17% |
| Other Income | 50 | 227 | 62 | 178 | 83 | 125 | 487 | 570 | 84 | 131 | 120 | 142 | 685 |
| Interest | 92 | 75 | 62 | 75 | 66 | 83 | 82 | 88 | 63 | 49 | 51 | 49 | 45 |
| Depreciation | 86 | 86 | 90 | 87 | 85 | 89 | 90 | 87 | 85 | 84 | 93 | 93 | 125 |
| PBT | 228 | 466 | 373 | 347 | 305 | 352 | 749 | 855 | 461 | 588 | 593 | 504 | 1,207 |
| Tax % | 26% | 17% | 21% | 17% | 19% | 20% | 10% | 18% | 24% | 25% | 23% | 26% | 13% |
| Net Profit | 168 | 387 | 294 | 287 | 248 | 283 | 672 | 699 | 349 | 444 | 456 | 371 | 1,048 |
| EPS in Rs | 6.32 | 14.7 | 11.15 | 10.24 | 9.46 | 10.94 | 25.72 | 26.62 | 13.31 | 16.68 | 17.16 | 14.04 | 39.67 |
Profit & Loss
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 8,450 | 7,236 | 5,899 | 6,347 | 8,953 | 9,957 | 7,153 | 6,505 | 9,758 | 17,340 | 13,978 | 16,770 | 17,300 |
| Expenses | 7,595 | 6,449 | 5,380 | 5,874 | 8,310 | 8,756 | 6,357 | 6,032 | 9,264 | 15,778 | 12,293 | 14,534 | 14,897 |
| Operating Profit | 855 | 787 | 519 | 473 | 644 | 1,201 | 795 | 473 | 494 | 1,561 | 1,684 | 2,236 | 2,403 |
| OPM % | 10% | 11% | 9% | 7% | 7% | 12% | 11% | 7% | 5% | 9% | 12% | 13% | 14% |
| Other Income | 96 | 99 | 139 | 128 | -106 | 243 | 618 | 544 | 386 | 504 | 1,248 | 478 | 1,078 |
| Interest | 283 | 241 | 236 | 170 | 177 | 144 | 85 | 102 | 243 | 304 | 320 | 212 | 194 |
| Depreciation | 436 | 386 | 386 | 258 | 260 | 233 | 246 | 255 | 303 | 348 | 351 | 355 | 394 |
| PBT | 231 | 258 | 36 | 173 | 101 | 1,067 | 1,082 | 661 | 334 | 1,413 | 2,262 | 2,147 | 2,893 |
| Tax % | 8% | 31% | 72% | 12% | 122% | 39% | 24% | 33% | 40% | 20% | 16% | 25% | — |
| Net Profit | 214 | 179 | 10 | 153 | -22 | 654 | 827 | 444 | 199 | 1,136 | 1,902 | 1,620 | 2,319 |
| EPS in Rs | 2.62 | 5.72 | 1 | 5.97 | -0.5 | 24.36 | 29.42 | 16.82 | 7.9 | 42.44 | 72.73 | 61.15 | 87.55 |
| Div. Payout % | 19% | 9% | 50% | 8% | -100% | 43% | 17% | 30% | 63% | 12% | 7% | 8% | — |
Balance Sheet
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 132 | 133 | 133 | 133 | 133 | 130 | 130 | 130 | 131 | 131 | 131 | 132 |
| Reserves | 2,667 | 2,666 | 2,677 | 2,721 | 2,665 | 3,085 | 3,952 | 4,298 | 4,582 | 5,467 | 7,313 | 9,024 |
| Borrowings | 3,021 | 2,644 | 1,843 | 1,386 | 1,305 | 1,061 | 1,021 | 2,057 | 3,381 | 1,967 | 1,122 | 2,355 |
| Other Liabilities | 3,998 | 3,195 | 3,595 | 3,452 | 4,097 | 3,667 | 2,588 | 2,684 | 7,180 | 4,249 | 6,635 | 8,889 |
| Total Liabilities | 9,818 | 8,637 | 8,247 | 7,693 | 8,200 | 7,943 | 7,692 | 9,169 | 15,274 | 11,813 | 15,201 | 20,400 |
| Fixed Assets | 4,662 | 3,730 | 3,356 | 3,046 | 1,567 | 1,617 | 2,599 | 2,433 | 4,910 | 4,800 | 4,707 | 6,536 |
| CWIP | 80 | 34 | 32 | 17 | 47 | 83 | 147 | 1,261 | 87 | 87 | 787 | 1,241 |
| Investments | 805 | 1,017 | 725 | 488 | 476 | 784 | 1,713 | 2,307 | 1,537 | 1,100 | 1,402 | 1,864 |
| Other Assets | 4,271 | 3,855 | 4,134 | 4,143 | 6,110 | 5,460 | 3,233 | 3,168 | 8,740 | 5,827 | 8,306 | 10,759 |
| Total Assets | 9,818 | 8,637 | 8,247 | 7,693 | 8,200 | 7,943 | 7,692 | 9,169 | 15,274 | 11,813 | 15,201 | 20,400 |
Cash Flow
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 901 | 354 | 403 | 981 | 623 | 648 | 774 | 218 | -185 | 1,306 | 1,504 | 3,204 |
| Investing | 338 | -326 | 618 | 184 | -255 | -49 | -848 | -201 | -348 | 373 | 194 | -3,714 |
| Financing | -1,106 | -99 | -979 | -761 | -335 | -743 | -198 | 453 | 909 | -1,877 | -1,369 | 875 |
| Net Cash Flow | 133 | -71 | 42 | 405 | 33 | -144 | -271 | 470 | 376 | -198 | 328 | 365 |
| Free Cash Flow | 812 | 122 | 322 | 933 | 565 | 474 | 518 | -757 | -1,235 | 1,022 | 690 | 715 |
| CFO/OP | 108 | 60 | 69 | 200 | 110 | 77 | 118 | 78 | -13 | 96 | 109 | 157 |
Ratios
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 49 | 71 | 91 | 76 | 48 | 42 | 34 | 46 | 43 | 38 | 46 | 37 |
| Inventory Days | 138 | 107 | 159 | 125 | 129 | 127 | 93 | 78 | 286 | 70 | 173 | 166 |
| Days Payable | 154 | 132 | 198 | 177 | 92 | 81 | 55 | 75 | 130 | 68 | 133 | 118 |
| Cash Conversion Cycle | 33 | 45 | 52 | 24 | 86 | 88 | 72 | 48 | 199 | 40 | 87 | 85 |
| Working Capital Days | 18 | 5 | 33 | 22 | 49 | 39 | 36 | -47 | -26 | 12 | 8 | -23 |
| ROCE % | 8% | 8% | 5% | 7% | 12% | 30% | 20% | 13% | 6% | 20% | 21% | 23% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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63 extracted metrics + investor summaries across FY07–FY27.
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Company Information
WCL is one of the largest manufacturers of large diameter pipes globally. The company also manufactures BIS-certified Steel Billets, TMT (Thermo-Mechanically Treated) Rebars, Ductile Iron (DI) Pipes, Stainless Steel Pipes, and Tubes & Bars. The company acquired Sintex-BAPL, a market leader in water tanks and other plastic products, to expand its building materials portfolio. It has also made strategic acquisition of specified assets of ABG Shipyard. [1]
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