Multibagger Alert: This stock zooms 1,150% in 70 months, brokerages see more upside left

Multibagger stock Welspun Corp: Domestic brokerage firms share their positive views on Welspun Corp, the flagship company of the Welspun Group, with some analysts initiating coverage on the counter lately while others continue to believe that the multibagger stock has more steam left in it on the back of three legged rally from India, the US and the Kingdom of Saudi Arabia.

Welspun Corp has made a mark in the metal pipes sector by expanding its presence across the value chain. Given its robust capacity arsenal, it plans to participate in infrastructure growth in India and energy independence in the US. It aims to expand its arsenal from metal pipes to building material products with Sintex as a frontline weapon, said Nuvama Institutional Equities.

"We reckon Welspun Corp, reaping the benefits of itsINR55bn in capex outlined till FY27E, shall report improved margins (12 per cent-plus) and returns ratio (300bp to 22 per cent) by FY28E. With all segments firing, top line/Ebitda is slated to compound at 21 per cent/22 per cent over FY25–28E," it added, initiating with a 'buy' rating and a target price of Rs 1,028 on the stock.

Established in 1995, Welspun Corp ranks among the top manufacturers of large-diameter line pipes globally. It is a diversified player offering Pipe Solutions (Line Pipes, DI Pipes, Stainless Steel) and Building Materials (TMT Rebars, Sintex Water Tanks, Plastic Pipes).

With a total installed pipe manufacturing capacity of 2.2 MMTPA and a consolidated order book of Rs 23,500 crore as of October 2025, Welspun Corp operates state-of-the-art manufacturing facilities in Anjar, Bhopal, Mandya, and Jhagadia in India, alongside strategic international operations in Little Rock (USA) and Dammam (Saudi Arabia).

Shares of Welspun Corp have surged more than 1,150 per cent from its covid-19 lows around Rs 62 apeice. The stock has gained more than 550 per cent in the last five years, while it is up 230 per cent in the last three years. However, the stock has down 9 per cent in the last six months, while it is down 21 per cent from its 52-week high at Rs 994.60, hit in June 2025.

Welspun stands out as a structurally attractive play in the pipes industry with sustainable long-term growth prospects. Demand tailwinds, coupled with new capacity coming online in Q1FY27 and ongoing product additions, provide strong visibility. A higher mix of value-added products, rising order book, and stable raw material prices are expected to support margin expansion, said BP Equities.

Manufacturing across key geographies offers it a competitive edge by expanding market access, lowering logistics costs, and diversifying risk. Its entry into the fast-growing plastic pipes and products segment through strategic acquisitions adds another growth lever, while an expanding distribution network positions it to scale faster, it said.

"Welspun is trading below its three-year median, offering scope for rerating. With global demand revival and management guidance of 10-12 per cent revenue CAGR over FY26-29 alongside 200bps Ebitda margin expansion to 15 per cent, earnings growth is set to accelerate. On a conservative basis, We derive a target price of Rs 942 per share," BP Equities adds.

Shares of Welspun Corp jumped nearly 5 per cent to Rs 813.55 on Monday, with a total market capitalization close to Rs 21,500 crore. The stock had settled at Rs 778.20 on Friday.

Welspun's consolidated order book stands at a record high, offering clear revenue visibility for the next two years at US and for at least 1 year at ex-US operations. The US operations are witnessing a structural shift with demand driven by LNG exports and power requirements for data centres, keeping the Little Rock mill fully booked until FY28, said Axis Direct.

"Welspun has a significant capex plan of Rs 5,500 crore over FY25-27. It has already incurred Rs 1,800 crore in FY25 and H1FY26 cumulatively so far, and plans to spend the balance until FY28 through internal accruals. It managed to maintain its net cash position of Rs 11 crore as of H1FY26 post Rs 950 crore capex. We recommend a 'buy' with a target price of Rs 875," it added.