Nuvama ups Welspun Corp target price 41%, raises EPS on order wins, execution
This story was originally published at 15:36 IST on 21 August 2026
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--Nuvama ups target price on Welspun Corp by 41% to INR 2,656; retains buy
--Nuvama ups Welspun Corp EPS view on strong order wins, consistent execution
MUMBAI – Nuvama Institutional Equities Friday raised its target price for Welspun Corp Ltd. by nearly 41% to INR 2,656, while maintaining a 'buy' recommendation. The brokerage also raised its earnings per share for the company for financial years 2026-27 (Apr-Mar), FY28, and FY29 by 3%, 13%, and 20%, respectively. The revised target price implies an upside of nearly 14% from the stock's current price.
Nuvama said consistent order execution and strong order wins led it to raise these forecasts. Welspun Corp late Thursday said it bagged a record order of INR 172 billion to supply pipes from its manufacturing facility in the US. The company's shares hit a record high of INR 2,348.90 on the National Stock Exchange earlier in the day and were a whopping 16.5% higher at INR 2,336.50 at 1512 IST.
The order, which is to transport gas to the Gulf Coast from the Permian Basin, provides business visibility and continuity till 2030, the brokerage said. "Strong demand from industries such as natural gas pipelines and data centres are keeping the order book full till FY30," it added.
Welspun Corp's current global order book is at a record INR 421 billion, with 60-65% catering to the US market. The company plans to execute the US orders over the next 3-3.5 years, its management said earlier Friday in an investor call. It is working on a couple more such orders but these are yet to be finalised. Its margins in the US operations are likely to be around $250-$300 per tonne, Nuvama said.
The company is in discussions about expansion of pipelines and water network in Saudi Arabia. "These discussions are likely to translate to orders in H2FY27 (Oct-Mar), further smoothening the path for long term top line growth," the brokerage said. Since around 20% of liquefied natural gas supply has been disrupted, the company expects higher demand for pipes with restoration activities coming up over the next three to five years. "Furthermore, the US – the largest exporter of LNG – continues to ramp-up spends to fill the global supply gap," Nuvama said.
The company's Indian line pipes business is also likely to witness higher demand with LNG terminals expanding the city gas distribution network. Its management continued to guide for an earnings before interest, tax, depreciation, and amortisation of INR 28 billion for FY27 and feels that doubling of EBITDA by FY30 does not seem distant, considering all geographies perform well. End
US$1 = INR 95.70
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Ashutosh Pati
Edited by Avishek Dutta
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