Latest news with #WelspunCorp
Time of India
12 hours ago
- Business
- Time of India
JM Financial maintains Buy on Welspun Corp, raises target price to Rs 980
JM Financial maintains a Buy call on Welspun Corp with a revised target price of Rs 980 (earlier Rs 940). The current market price of Welspun Corp is Rs 920.1. The time period given by the analyst is year when Welspun Corp price can reach the defined target. Welspun Corp, incorporated in 1995, is a Mid Cap company with a market cap of Rs 24267.32 crore, operating in Metals - Ferrous sector. Welspun Corp's key products/revenue segments include Welded Pipes, Scrap, Other Operating Revenue and Export Incentives for the year ending 31-Mar-2024. Financials For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 3966.86 crore, up 8.49% from last quarter Total Income of Rs 3656.57 crore and down -12.70 % from last year same quarter Total Income of Rs 4543.70 crore. The company has reported net profit after tax of Rs 648 crore in the latest quarter. The company's top management includes Goenka, Mathur, R Mandawewala, Misra, Misra, Chokhani, Agrawal, Sheth. Company has Price Waterhouse Chartered Accountants LLP as its auditors. As on 31-03-2025, the company has a total of 26 crore shares outstanding. Live Events Investment Rationale Welspun Corp has guided to maintain its Net Debt to EBITDA ratio below 1.0x. Improved scale across businesses buoyed by macros will help capitalize on operating leverage, while strong cash flows will further reduce financial leverage. JM Financial maintains BUY. Promoter/FII Holdings Promoters held 50.01 per cent stake in the company as of 31-Mar-2025, while FIIs owned 12.18 per cent, DIIs 14.3 per cent. ETMarkets WhatsApp channel )
Mint
2 days ago
- Business
- Mint
JSW Steel, Vedanta, Tata Steel and other metal stocks drop up to 2% as Trump doubles tariffs to 50%
Indian metal stocks started June on a sombre note, with the Nifty Metal index declining 1.6% in early trade on Monday, June 2. Fourteen out of fifteen constituents opened in the red, trading with cuts of up to 2%. Lloyds Metals & Energy, JSW Steel, Welspun Corp, Vedanta, Tata Steel and Steel Authority of India emerged as the top laggards. While it's not just metal counters facing selling pressure on Dalal Street today, the red wave swept across the board as global trade tensions resurfaced, triggering risk-off sentiment among investors. US President Donald Trump last week intensified trade tensions, announcing he would double tariffs on steel and aluminum imports and accusing China of violating a prior agreement to ease tariffs. Speaking at a rally in Pennsylvania, Trump said the US would raise steel tariffs from 25% to 50% starting next week while highlighting the partnership between Japan's Nippon Steel and US Steel. Later, taking to his Truth Social account, Trump wrote, 'It is my great honor to raise the tariffs on steel and aluminium from 25% to 50%, effective Wednesday, June 4th. Our steel and aluminum industries are coming back like never before. This will be yet another BIG jolt of great news for our wonderful steel and aluminum workers. MAKE AMERICA GREAT AGAIN!' The announcement comes amid an ongoing legal battle over the legality of some of Trump's tariff policies. An appeals court has allowed the case to proceed after the Court of International Trade ordered a halt to the taxes. Trump accused China of violating a tariff truce reached in early May—a claim Beijing rejected, countering with accusations of US wrongdoing. China, the world's largest steel producer and exporter, has seen its steel exports to the US decline significantly since the 25% tariff was imposed in 2018. While India's exports of steel and aluminium to the US are limited, the drop in metal stocks occurred amid growing concerns that a potential rise in tariffs could impact global metal demand. A call between Trump and Chinese President Xi Jinping is expected later this week in a possible effort to ease trade tensions. On the economic front, Chinese factory activity data contracted at a slower pace in May than the month prior, also aiding the selling pressure in metal stocks today. As tariff headlines once again dominate global markets, Asian indices opened in the red on Monday, with the Nifty 50 and Sensex falling nearly 1% in early trade. Rising geopolitical tensions between Ukraine and Russia also pushed investors toward safe-haven assets, leading to a sharp decline in equities. According to Dr VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the market structure currently supports a continuation of the ongoing consolidation phase. He noted that global headwinds—particularly renewed tariff concerns—are likely to restrain any breakout rally. However, strong domestic tailwinds may offer support at lower levels. He added that the recent announcement of 50% tariffs on steel and aluminium by President Trump signals ongoing uncertainty in the global trade environment, which may act as a significant headwind for markets. On the domestic front, however, factors such as better-than-expected Q4 GDP growth at 7.4%, improving trends in consumption and capital expenditure, low inflation, and the prospect of continued rate cuts present a solid foundation for sustained economic growth in FY26. The only near-term challenge, he pointed out, is weak earnings growth. If leading indicators begin to reflect a recovery, the market has a strong chance of breaking out of its current range and moving higher. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
Mint
3 days ago
- Business
- Mint
Welspun Group sees strong US business despite US tariffs, expands into water management
On Thursday morning, Welspun Corp stock was up 10% on highest volumes of shares traded on any day in the past twelve months. The stock closed at its 52-week peak of ₹ 895 on the BSE. The company, which makes steel pipes for transporting oil, had just announced its Q4FY25 and FY25 results, reporting a 67% increase in consolidated net profits over the previous financial year despite a 19% fall in annual revenues. The sudden confidence of investors should come as a surprise. There was some serious uncertainty surrounding its business after President Donald Trump imposed a 25% tariff on steel imports into the US in early March. Welspun, which has a pipe making factory in the US, imported steel as raw material, which made the landed cost of the metal highest compared to anywhere else in the world. It looked like Welspun Corp was staring at a prolonged downturn. A month after Trump announced tariffs, the stock was down 15%. B.K. Goenka, chairman of Welspun Corp, says: 'Trump's big support for the local US oil industry is seeing a surge of investments in the sector. There is a huge demand for pipes, causing their prices to increase and we are doubling down on the business.' Welspun disclosed that it has an order book of ₹ 19,500 crore, while its US steel mill is booked for the next 8 quarters. It is not just in the pipe business that Goenka is exuding confidence. As luck would have it, yet another company of the $5 billion Welspun group has its business fortunes linked to the US market. Welspun Living, which is the largest maker of bath towels in the world, accounts for every fifth towel sold in the US. Just like steel, garments exports to the US were also affected by Trump's new rules, which saw import tariffs increase from 4.57% to 30.57%, according to textile industry portal Fibre2Fashion. In its Q4FY25 results announced on Thursday, Welspun Living said that its home textiles grew at 1.7% year-on-year (y-o-y) in the quarter, even though the growth stood at 10.8% in FY25. The company's total revenue rose 1.2% to ₹ 2,648 crore in Q4FY25. For the full fiscal year, it rose at 8.9% to ₹ 10,697 crore. A research report by institutional equities firm Systematix titled Indian Textiles, published after India signed its free trade agreement FTA with the UK in the first week of May, says: 'The FTA is poised to bring far-reaching benefits to India's textile and apparel sector. The agreement can double bilateral trade between the two countries.' The sector's export accounted for 12% of UK's $15.3 billion imports from India and the report expects a 9% increase in Welspun's export to the UK, boosted by the agreement. In many ways, the two Welspun firms have come to be good examples of how Indian companies are working the way around Trump's tariffs, which have got the attention of senior business leaders, policy makers and investors in the past two months. 'Immediately, we will face some issues in our export to the US because of tariffs but we must understand that the main focus of the US is to reduce its reliance on China. To that effect, the real China+1 effect is going to play out only now. In the coming years, we expect our exports to the US to grow 20%,' says Goenka. Now, the biggest chunk of Chinese exports to the US markets come from synthetic textile and garment, while Indian exports are based on cotton. 'We may not gain from Chinese exports going down as much as getting our shares from countries like Bangladesh and Sri Lanka which also face higher tariffs in the US. We have better access to capital and that will help us scale up faster," Goenka says. "India has a unique advantage in home textiles as well-run companies like Welspun Living have easier access to capital markets and also locally-made cotton. It is placed better than competitors like Pakistan and Turkey in terms of US tariffs," says Arvind Singhal, founder and chairman of retail industry consultancy KSA Technopak. Singhal, until last year, was a board member of Welspun Living. On the other hand, since the price of oil pipe will be directly linked to that of steel, Goenka expects to pass any price increase to customers. 'The price of US steel has already gone up after tariffs were announced and there is going to be parity to imports,' he says. In the case of Welspun Corp, there are other levers too by which Goenka is trying to generate value. To deploy some of its cash, Goenka took control of plastics storage and furniture maker Sintex after the company filed for bankruptcy. The interest in Sintex stems from Goenka's interest in the water business, which he thinks will grow into a substantial one in the coming years. 'Starting from treatment, whether fresh water treatment or desalination, then transporting, and having a small loft tank, pipes, tap and small effluent sewage treatment can all be done by Sintex as a package unit," says Goenka. 'In FY26, we will do about ₹ 800 crore of revenue but the profits won't by much because of old losses or restructuring. But, we have 10% margin in the business.' "Welspun has diversified beyond its core offerings into building materials and plastic segments. Such expansion enables it to align with favourable dynamics across the industrial, consumer and residential markets," wrote Shweta Dikshit, analyst with Institutional equities firm Systematix in a May 19 note on the company. The firm recommended a buy on the stock with a target price of ₹ 1,006. Elsewhere, Goenka is focusing on reducing his costs in the textile business and is implementing a solar power project in Anjar, Gujarat. That project was commissioned with an intention to ensure that 80% of the power for the textile plant came from renewable sources in FY26 and 100% by FY30. 'Connectivity to the grid is still an issue. We will commission a part of it by September this year and the rest by December," Goenka says. The group will eventually have more solar energy in the renewable portfolio as a new company Welspun Energy has been incorporated for the business. In pilot stages are plans to produce green ammonia and green hydrogen. 'It may look like green hydrogen is not viable today but that was the case with solar energy too in 2008-09 when it was ₹ 18 a unit. The same will happen to hydrogen and it is the energy of the future," he says.
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Business Standard
6 days ago
- Business
- Business Standard
Akash Bhanshali portfolio stock up 10%, nears record high post Q4 results
Welspun Corp share price today Akash Bhanshali portfolio stock: Shares of Welspun Corp surged 10 per cent to ₹893.55 on the BSE in Thursday's intraday trade, amid heavy volumes, in an otherwise rangebound market. The stock price gained after the company reported 30.7 per cent growth in its consolidated profit before tax (PBT) for the quarter ended March 2025 (Q4FY25). In the past two trading days, Welspun Corp share price has rallied 14 per cent. The stock is trading close to its all-time high price of ₹900, which it touched on March 24, 2025. At 11:39 AM, Welspun Corp was quoting 9.7 per cent higher at ₹892.80 as compared to 0.01 per cent decline in the BSE Sensex. Average trading volume on the counter jumped over 20-times. A combined 8.8 million equity shares, representing 3.4 per cent of total equity of Welspun Corp, have changed hands on the NSE and BSE thus far in trade. Akash Bhanshali held over 1 per cent stake in Welspun Corp Investor Akash Bhanshali held 3.36 million equity shares, representing 1.28 per cent stake in Welspun Corp, at the end of the March 2025 quarter, shareholding pattern data shows. Some of the stocks that are part of his equity portfolio are Ambar Enterprises, Dilip Buildcon, Genus Power, Laurus Labs, Natco Pharma, Ramkrishna Forgings, and Shilpa Medicare. Welspun Corp Q4 results The iron & steel products company posted 30.7 per cent year-on-year (Y-o-Y) growth in consolidated profit before tax (PBT) at ₹328 crore in the March quarter, aided by a reduction in expenses. The company had posted PBT of ₹251 crore in the year-ago quarter. Earnings before interest, taxes, depreciation and amortisation (Ebitda) moved up from ₹413 crore to ₹502 crore, registering a growth of 21.5 per cent. However, the company saw its income declining 12.7 per cent Y-o-Y to ₹3,967 crore in the fourth quarter of FY25, from ₹4,544 crore in the same period a year ago. Welspun Corp FY26 revenue, Ebitda guidance For the financial year 2025-26 (FY26), Welspun Corp guided 25 per cent growth in revenue at ₹17,500 crore, higher than ₹13,978 crore in FY25. Ebitda, the company said, will grow 18 per cent to ₹2,200 crore from ₹1,858 crore in FY25. Welspun Corp achieved its Ebitda guidance of ₹1,700 crore for the recently concluded financial year. However, it missed revenue guidance of ₹17,000 crore. Business environment In the exports market, the company continued to observe good demand for LSAW pipes for critical applications such as deep offshore, Sour Service where Welspun has an impeccable track record. In the domestic market, oil demand in India is projected to register 2X growth to reach 11 mbpd by 2045 & Indian Refiners are expected to add 56 MTPA by 2028 to increase domestic capacity to 310 MTPA. The Indian government is investing heavily in expanding refining capacity, pipelines, and LNG terminals to meet the growing demand. In the water segment, huge opportunity in interlinking of rivers - Push from centre and states like MP (Ken-Betwa & PKC), Rajasthan (ERCP) and Maharashtra (Wainganga-Nalganga) will kick start pipe demand from this year followed by more interlinking projects under consideration in northern part of India. The states like Gujarat, MP, Rajasthan, Haryana, Tamil Nadu and Jharkhand are exponentially increasing the water pipeline network for irrigation, industrialization and urbanization. Jal Jeevan Mission (JJM) has been extended to 2028 which will translate into increased consumption of DI pipes. There was a slowdown in the release of funds under JJM in FY25 resulting in cash crunch in the market and the contractors have reduced their lifting off-late, resulting in piling up of inventory at manufacturers' end. However, the situation is likely to improve from the second half of FY26, the company said. About Welspun Corp Welspun Corp is the flagship company of Welspun World, with a diverse business portfolio in pipe solutions and building materials. WCL is among the top three manufacturers of large-diameter pipes globally and has established a global footprint across six continents and 50+ countries by delivering key customized solutions for both onshore and offshore applications. In the Pipes Solutions vertical, WCL also manufactures Ductile Iron (DI) Pipes and Stainless Steel Pipes, Tubes & Bars.
Time of India
6 days ago
- Business
- Time of India
Metal stocks shine on a lackluster monthly expiry, surge up to 11%. Here's why
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Driven by a combination of factors like Q4 earnings and a block on President Donald Trump's trade tariffs, metal stocks surged up to 11% in Thursday's trade, outperforming a weak broader market, as both the Nifty and Sensex trading in the red. Welspun Corp shares led the rally, surging 11.1% to hit a high of Rs 903.90 during the session after reporting impressive Q4 results. The pipe manufacturing major's fourth-quarter net profit more than doubled, the company slashed its gross debt, and guided for strong revenue growth in the year Corp posted a 143% year-on-year rise in consolidated net profit to Rs 699.19 crore for the March quarter, up from Rs 287.28 crore in the same period last year. The sharp profit growth came despite a decline in total income to Rs 3,966.86 crore from Rs 4,543.70 crore, largely supported by a significant drop in expenses, which fell to Rs 3,639.32 crore from Rs 4,292.37 other metal stocks, Lloyds Metal & Energy shares climbed 4.8% to reach Rs 1,422.00. Jindal Stainless shares also gained 3.5%, touching Rs 669.50, while Hindustan Zinc rose 2.8% to Rs Steel & Power shares were up 2.5%, hitting Rs 968.75, while Tata Steel shares advanced 1.7% to touch Rs 163.95. NMDC shares registered a more modest rise of 1.2%, with the stock reaching a high of Rs broader Nifty Metal index also outperformed the market, surging by over 1%. However, at around 2 pm, the index was up by 0.8%.Meanwhile, the shares of the state-owned Steel Authority of India Ltd (SAIL) jumped 2.2% to an intraday high of Rs 131.80 after the company reported an 11% year-on-year (YoY) rise in consolidated net profit for Q4FY25 at Rs 1,251 crore, compared with Rs 1,125 crore in the same quarter last rally in the metal pack came after a U.S. federal court ruling dealt a major blow to Donald Trump's plan to impose sweeping reciprocal tariffs on imports from several trading partners, including India.'The Federal court's decisions may have partly driven the uptick in metal stocks as commodities follow the international prices. Metal stocks have already seen a lot of buying activity and technically they are showing signs of bottoming out,' said Rajesh Palviya, Senior Vice President, Research-Head Technical & Derivatives at Axis Securities, adding that he sees an uptrend, going ahead.'Most metals behave with the same kind of momentum and we remain bullish on them," Palviya said while recommending a buy on Tata Steel, Vedanta, Jindal Steel and mining stock line a similar sentiment, Aamar Deo, Senior VP of Research at Angel One said, 'To a certain extent, metals stocks are reacting to the US court's decision as domestic commodities track global prices'.The development is being seen as a potential boost for global trade sentiment and a relief for export-driven sectors, particularly ruling, delivered by the U.S. Court of International Trade, invalidated the tariffs Trump had recently imposed on nearly all trading partners. These duties, which went as high as 50% in nations with trade deficits with the U.S., had disrupted international commerce, impacted supply chains, and added to inflationary pressures across global Indian metal exporters , the move may bring significant respite. The rollback of these tariffs may enhance price competitiveness for domestic players in overseas markets, particularly the U.S., which is a key export destination for steel, aluminum, and other metal tariffs in question were imposed under the International Emergency Economic Powers Act (IEEPA), a law the court found was misused to justify trade restrictions. While other Trump-era tariffs on steel, aluminum, and autos remain intact under different trade statutes, the latest ruling significantly curtails the scope for unilaterally imposed duties under emergency ruling may still face appeals, but for now, the market is pricing in the potential for a more stable and predictable global trade environment. With tariffs temporarily blocked and the scope of unilateral trade actions curbed, metal exporters stand to benefit from restored access and improved sentiment in global markets.
