Multibagger metal stock approaches record high as Q4 net profit doubles 

Shares of Welspun Corp Ltd (WCL) approached their record high on Thursday after the firm's net profit more than doubled in the March 2024 quarter. Net profit rose over 143% in the March quarter, reaching Rs 699.19 crore, primarily led by a significant reduction in expenses. In the same period last year, the company noted a net profit of Rs 287.28 crore, as stated in their exchange filing.

Welspun Corp shares rose 10% to Rs 894.80 on BSE on Thursday. The multibagger stock has gained 262% in two years and risen 33350% in three years. Earlier, Welspun Corp stock opened higher at Rs 833 against the previous close of Rs 813.85 on BSE. Market cap of Welspun Corp rose to Rs 23,493 crore on BSE.   

The stock touched a record high of Rs 900 on March 24,2025 and a 52-week low of Rs 441 on June 4, 2024. 

However, the company logged a decline in income, which fell to Rs 3,966.86 crore in the fourth quarter of FY25, compared to Rs 4,543.70 crore in the same quarter last year. Notably, WCL successfully lowered its expenses to Rs 3,639.32 crore, down from Rs 4,292.37 crore in Q4 FY24.

On a quarter-on-quarter basis, net profit rose by over 4%, up from Rs 672.19 crore earned in the October-December FY25 period. For the entire fiscal year of FY25, net profit stood at Rs 1,902.28 crore, a decline from Rs 1,136.00 crore in FY24.

The company's board has also proposed a final dividend of Rs 5 per equity share of face value Rs 5 each for FY25, as reported in a stock exchange filing on Wednesday night. In addition, they have approved a proposal to raise funds through the issuance of commercial papers (CPs) or Non-Covertible Debentures (NCDs), not exceeding Rs 500 crore, on a private placement basis.

WCL traditionally utilizes CPs and NCDs to meet routine working capital needs, and further details will be shared when these securities are issued. The company reported a gross debt reduction of Rs 1,000 crore during FY25, despite having spent Rs 900 crore on capital expenditures. WCL has now achieved net cash status, with Rs 1,049 crore in cash reserves. For FY26, the company anticipates revenue of Rs 17,500 crore, reflecting a 25% increase compared to the Rs 13,977.54 crore recorded in FY25.

With a robust order book exceeding Rs 19,500 crore, WCL has contracts for line pipes in India and the US, as well as ductile iron (DI) pipes and stainless steel bars and pipes. The US mill's order book is secured for the next eight quarters. The company is also investing Rs 5,482 crore across India, the US, and the Kingdom of Saudi Arabia to enhance its production capacities in various sectors.

Welspun Corp Limited is engaged in the business of manufacturing steel products and plastic products. The company is engaged in the business of production and coating of high-grade submerged arc welded pipes, hot rolled steel plates and coils. It is a service provider of welded line pipes, ductile iron pipes, stainless steel pipes, tubes and bars.