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Shares of Welspun Corp surged nearly 4% in early trade on Thursday, September 3, after global brokerage Jefferies initiated coverage on the stock with a ‘Buy’ rating and set a target price of ₹3,250.
The brokerage’s target price implies an upside of approximately 28.8% from Welspun Corp’s previous closing price of ₹2,523.50.
At around 10:48 AM, Welspun Corp shares were trading near the day’s high of ₹2,676, which also marked a fresh 52-week high.
Welspun Corp Share Price Today
| Detail | Price/Value |
|---|---|
| Previous Close | ₹2,523.50 |
| Open Price | ₹2,554.70 |
| Day’s Low | ₹2,553.60 |
| Day’s High | ₹2,676.00 |
| 52-Week Low | ₹710.00 |
| 52-Week High | ₹2,676.00 |
| Live Volume | 23,32,502 |
| Jefferies Target Price | ₹3,250 |
| Brokerage Rating | Buy |
Why Welspun Corp Shares Are Rising Today
The sharp movement in Welspun Corp shares came after Jefferies initiated coverage on the company, highlighting its positioning in the global energy infrastructure cycle.
Jefferies described Welspun Corp as a global leader in welded line pipes, which are used to transport oil and gas and form an important part of energy infrastructure projects.
The brokerage believes the company’s manufacturing footprint across key global markets gives it an advantage as spending on energy infrastructure increases.
US Oil And Gas Capex To Support Welspun Corp
Jefferies sees strong potential for Welspun Corp from continued capital expenditure in the US oil and gas sector.
The company’s local manufacturing capabilities in the US could help it capture demand more efficiently while reducing some of the logistical and operational challenges associated with importing products.
According to the brokerage, rising investments in oil and gas infrastructure could provide an important growth opportunity for Welspun Corp over the medium term.
Saudi Arabia Emerging As Key Growth Market
Jefferies also identified Saudi Arabia as a significant opportunity for Welspun Corp.
Saudi Arabia continues to invest heavily in energy and infrastructure, creating potential demand for line pipes and related products. Welspun Corp’s global presence could allow it to participate in these large-scale projects.
The brokerage believes opportunities across international energy markets could strengthen the company’s growth prospects.
India Demand Outlook Remains Uncertain
While Jefferies sees potential tailwinds from the Indian market, it cautioned that the near-term domestic demand environment remains uncertain.
Despite the uncertainty, the brokerage expects Welspun Corp to maintain a strong growth trajectory and deliver healthy returns on equity.
Global oil and gas projects, particularly in the US and Saudi Arabia, could offset some of the near-term uncertainty in India and support the company’s medium-term performance.
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