Welspun Corp shares have delivered stellar returns this year, surging more than 200% year-to-date (YTD), defying weak stock market sentiment amid higher crude oil prices, rising bond yields, and massive foreign capital outflow.
As per current BSE data, Welspun Corp share price is up almost 230% YTD, while in the last one year, it has gained nearly 215%. On longer timeframes of 3 years, 5 years, and 10 years, the stock has soared nearly 490%, 1,670%, and 3,575%, respectively, delivering strong multibagger returns.
In intraday deals on Friday, 16 October, Welspun Corp shares jumped nearly 6% to an intraday high of ₹2,630.10. The multibagger stock hit a 52-week high of ₹2,899.95 on 29 September after hitting a 52-week low of ₹709.75 on 2 February this year.
Welspun Corp owns Sintex, a well-known Indian brand that makes water storage tanks and advanced plastic piping products.
Welspun Corp manufactures a wide range of products, including OPVC (oriented polyvinyl chloride pipes) pipes, line pipes, ductile iron pipes, stainless steel bars, pipes and tubes, and TMT rebars.
Should investors buy Welspun Corp shares ahead of Q2 results?
Welspun Corp is expected to announce its September quarter (Q2FY27) results in the coming weeks. The company has not yet officially announced its board meeting date for the current financial year’s second quarter results.
Experts say the company’s long-term growth prospects make it an attractive buy for the long term. However, at the current juncture, the stock’s valuation is stretched, which can keep the upside capped or even trigger some profit booking.
Ravi Singh, Chief Research Officer at Master Capital Services, underscored that Welspun Corp share price has delivered a remarkable rally due to strong business fundamentals and expanding product segments.
“Its operating profit margin reached a record 17% in Q1, highlighting improved operational performance. However, at around 29 times price-to-forward earnings, valuations appear stretched despite the company’s growth prospects,” Singh noted.
“Fresh investors should avoid chasing the rally and wait for a meaningful correction towards ₹2,015, with a potential target of ₹2,800 over the medium term,” said Singh.
Saurabh Jain, the head of fundamental research at SMC Global Securities, underscored that Welspun shares staged a stellar performance before consolidating near the ₹2,486– ₹2,614 range.
Jain added that the company’s underlying fundamentals remain exceptionally strong, backed by Q1 FY27 revenue of ₹4,081 crore (up 15% YoY) and an EBITDA of ₹756 crore (up 35% YoY).
Jain believes that the company’s long-term growth trajectory is steady, driven by a massive global order book of ₹24,750 crore, strategic international expansion in the US and KSA, and a pristine net cash balance sheet of ₹2,336 crore.
However, following its parabolic rally, the valuation has become visibly stretched.
“Trading at a trailing P/E of roughly 28–30 times and a price-to-book multiple exceeding 7 times, the stock has aggressively priced in its near-term earnings acceleration and multi-year order execution visibility,” said Jain.
“While existing long-term investors are likely to comfortably hold their positions to benefit from structural water and energy infrastructure spending, fresh investors should avoid aggressive lump-sum buying at current peaks. It is prudent to wait for a healthy correction to accumulate shares with a better margin of safety,” Jain said.
On the technical front, the stock’s broader technical structure remains bullish despite recent profit booking from higher levels.
Deepesh Sarawagi, a technical research analyst at Choice Broking, underscored that the stock has maintained a higher-high and higher-low formation, reflecting a sustained uptrend.
According to Sarawagi, on the upside, the ₹2,850– ₹2,900 zone remains a key hurdle, and a decisive breakout could support further gains.
“The 20-day EMA is positioned above the current price, indicating near-term weakness, while the ₹2,450– ₹2,400 region, aligned with the 50-day EMA, offers an important support base,” said Sarawagi.
“The stock continues to trade above its 100-day and 200-day EMAs, preserving its long-term bullish structure. The RSI is near the neutral mark, suggesting moderating momentum. The near-term bias remains positive as long as the stock holds its EMA support zone; a breach could extend the ongoing consolidation,” Sarawagi said.
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Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
