Shares of Welspun Corp Ltd. have shown extraordinary growth, turning into a multibagger stock for investors over the past three years. The stock recently traded at Rs 1,338.10, pushing its market capitalization close to Rs 35,000 crore. This surge represents a remarkable 620% return from its price of Rs 185 in May 2023.
Strong Performance Despite Mixed Q4FY26 Results
Despite reporting a mixed set of financial figures for the quarter ending March 31, 2026, brokerage firms have maintained a positive outlook on Welspun Corp. The company's net profit for Q4FY26 stood at Rs 370.4 crore, a 47% decrease year-on-year. However, revenue saw a 9.9% increase, reaching Rs 4,312.6 crore, with EBITDA at Rs 503.8 crore and stable margins of 11.7%.
The company attributed some of the quarter's challenges to disruptions in export markets due to ongoing geopolitical tensions. Nevertheless, Welspun Corp announced a final dividend of Rs 5 per share and provided robust guidance for FY27.
Analysts Boost Price Targets
Brokerage firms have reacted to Welspun Corp's performance and future prospects by significantly increasing their target prices for the stock.
- Nuvama Institutional Equities: Citing a healthy order book and strong sectoral tailwinds, Nuvama revised its FY27E/28E EPS upwards by 10% each. They maintained a 'buy' rating, raising their target price to Rs 1,458 from the previous Rs 1,082.
- Systematix Institutional Equities: This firm highlighted the growing order book, ongoing capacity expansion, and a diversified product mix as key drivers for medium-term growth. They noted Welspun's strong balance sheet, ending FY26 with a net cash position of Rs 1,600 crore, and issued a 'buy' rating with a target price of Rs 1,610.
- JM Financial Ltd: Praising the company's strong close to FY26, achieving 96% of revenue guidance and surpassing EBITDA guidance, JM Financial also revised earnings upwards for FY27E/FY28E. They set a 'buy' rating with a target price of Rs 1,500, citing a robust order book and strong demand outlook.
Future Outlook and Expansion
Welspun Corp's order book has more than doubled to Rs 25,300 crore, indicating strong demand. The company's FY27 guidance projects revenue of Rs 20,000 crore and EBITDA of Rs 2,850 crore, with a Return on Capital Employed (RoCE) exceeding 20%.
Key expansion projects, including US and KSA capacity additions, are on track for commissioning in FY27. The company has also commissioned capability enhancements at its existing Spiral facility in Anjar and plans additional coating capacity expansion in Bhopal. These strategic moves, combined with a strong financial position, are expected to support continued growth and insulate the company from cyclical volatility.