Welspun Corp shares jump over 2% after Nuvama initiates coverage with Buy rating, target price set at Rs 1,028

Shares of Welspun Corp gained over 2% in early trade after Nuvama Institutional Equities initiated coverage on the stock with a Buy rating and a target price of ₹1,028 per share

In its initiation note, Nuvama said Welspun Corp has built a strong and defensible position in the metal pipes segment by expanding across the value chain. The brokerage highlighted the company’s robust and diversified manufacturing capacity, which allows it to cater to a wide range of domestic and international infrastructure and energy projects.

According to Nuvama, Welspun Corp is well placed to benefit from India’s accelerating infrastructure push, particularly in water transmission, oil and gas pipelines, and large public works. At the same time, the company is expected to play a meaningful role in supporting energy independence initiatives in the United States, where demand for energy infrastructure remains structurally strong.

Beyond its core pipes business, Nuvama pointed out that Welspun Corp is increasingly looking to diversify into building material products. The brokerage believes Sintex could emerge as a key growth driver in this segment, helping the company reduce dependence on a single business line. This strategic shift is expected to create a more balanced and resilient business model over the medium term, supported by the company’s scale and execution capabilities.

The brokerage also noted that Welspun Corp is currently executing a ₹5,500 crore capital expenditure programme through FY27. This investment is aimed at capacity expansion, product diversification, and operational efficiency improvements. As these initiatives come on stream, Nuvama expects margins and return ratios to improve steadily, with meaningful gains likely by FY28.

With performance across all business segments remaining healthy, Nuvama estimates Welspun Corp’s revenue and EBITDA to grow at a compounded annual rate of 21% and 22%, respectively, over FY25–FY28. The growth outlook is supported by strong order visibility, operating leverage, and disciplined capital allocation, reinforcing the brokerage’s positive stance on the stock.

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