Welspun Corp stock snaps 5-day slide; here’s why Axis Securities sees upside in 3-6 months

Shares of Welspun Corp Ltd climbed on Tuesday, halting a recent downtrend. At last check, the stock was trading 1.04 per cent higher at Rs 806 on the BSE, from its previous close of Rs 797.70. The counter has successfully snapped its five-day losing streak, during which it had shed more than 7 per cent in value.

The positive momentum follows a significant development announced by the company regarding its international operations.

On Monday post-market hours, Welspun Corp informed the exchanges that its associate company, East Pipes Integrated Company for Industry (EPIC), a listed entity in the Kingdom of Saudi Arabia (KSA), has signed a major contract. 

The agreement with the Saudi Water Authority is for the manufacturing and supply of steel pipes for a total value exceeding 485 million SAR (approx Rs 1,165 crore). The duration of this contract is six months.

Brokerage Axis Securities has recommended a ‘Buy’ on Welspun Corp. The brokerage has set a target price of Rs 875, implying an upside of 9 per cent from current levels, with an investment duration of 3-6 months.

Axis Securities highlighted Welspun Corp's robust order book which stands at a record high of Rs 23,500 crore as of October 2025. Brokerage noted that this backlog offers clear revenue visibility for the next two years at the US and for at least 1 year at ex-US operations.

The brokerage’s bullish stance on Welspun Corp is underpinned by the company’s strong positioning across two core geographies. In the US, it highlighted a structural shift in demand driven by LNG exports and rising power requirements from data centres, with Welspun Corp’s Little Rock mill already fully booked through FY28.

 In Saudi Arabia, the firm noted that, beyond the recent project win by its associate EPIC, Welspun Corp is also setting up wholly owned greenfield facilities to service Aramco’s approximately $10 billion annual capex programme and the region’s large-scale water infrastructure projects.
Valuation and Financials

"As per our estimates, the stock is currently valued at 7.5x of FY28 EBITDA, which appears to be attractive," the brokerage said in its note. Management remains confident of achieving its FY26 EBITDA guidance of Rs 2,200 crore, having already delivered Rs 1,186 crore in the first half of the fiscal year.