Geojit Investments Limited has suggested BUY Call for Welspun Corp Ltd, a global leader in large-diameter line pipes. Welspun Corp showed exceptional Q2FY26 performance with 32% revenue growth and 57% PAT surge. Supported by a record order book, a solid U.S. business pipeline, and strategic debt reduction leading to a net cash position, the stock displays attractive valuation with a forward P/E of around 15x. Technical indicators reinforce bullish momentum, prompting a recommended buy at Rs. 920–940 with a target of Rs. 1,150 and stop-loss at Rs. 830 for a potential 26% upside over 3-6 months.

Geojit’s Buy Call on Welspun Corp Ltd

Geojit Investments Limited has issued a strong buy recommendation on Welspun Corp Ltd (WELCORP), a dominant player in the iron and steel sector, especially large-diameter line pipes, on 11 November 2025. The research underscores the company’s significant operational growth and enhanced profitability, reinforced by a robust order book and prudent financial management. Investors are advised to enter long positions in the Rs. 920 to Rs. 940 price band, targeting Rs. 1,150 with an advised stop-loss of Rs. 830, projecting a healthy 26% return within a 3-6 month horizon.

Stellar Financial Performance in Q2FY26

Welspun Corp’s Q2FY26 results were impressive with revenue skyrocketing 32% year-on-year to Rs. 4,374 crore. EBITDA rose a commanding 48% to Rs. 591 crore, accompanied by an expansion in margin to 13.5% from 12.1% in the prior year period. Most notably, PAT surged 57% YoY to Rs. 443.5 crore, a testament to operational efficiency, execution precision, and stringent cost control. This robust earnings surge highlights Welspun’s effective management and growing demand for its infrastructure products.

Robust Order Book and Strategic U.S. Subsidiary Business

Welspun’s U.S. subsidiary secured substantial line pipe orders worth $715 million, focused on natural gas and Natural Gas Liquids (NGL) projects, ensuring solid revenue visibility through FY28. This backlog contributes to an unprecedented group order book totaling Rs. 23,500 crore. Additionally, increasing demand from AI-powered data centers supports Welspun’s positioning in the U.S energy infrastructure value chain, indicating sustained business growth and market relevance.

Prudent Debt Reduction and Financial Strength

The company has impressively reduced its debt over recent years, culminating in a five-year low debt-to-equity ratio of 0.2x in H1FY26. Supported by strong cash reserves and strategic asset divestitures, Welspun stands in a net cash position. This deleveraging underscores its financial discipline and reinforces operational resilience despite ongoing sizable capital expenditures.

Valuation and Profitability Metrics

Welspun Corp currently trades at a forward price-to-earnings (P/E) ratio of approximately 15x, reflecting an attractive valuation relative to its growth prospects. The company’s EBITDA margin is progressively expanding, expected to reach 12.4% by FY27. Adjusted profit after tax (PAT) is projected to rise 21% in FY26 and 18% in FY27, with return on equity (RoE) stabilizing around 17.7-17.8%, signifying sustainable profitability supported by disciplined cost controls and operational leverage.

Technical Outlook: Bullish Momentum Confirmed

Welspun’s stock chart exhibits a decisive breakout above a downward-sloping trendline with strong volume confirmation, a classical indicator of renewed bullish momentum. The stock successfully retested the breakout level and rebounded sharply, confirming the shift in trend bias favoring upside movement. Price currently trades solidly above the 21, 50, and 100-day Simple Moving Averages (SMAs), reinforcing a strong bullish structure.
The Relative Strength Index (RSI) is hovering near 60, indicating healthy consolidation within bullish territory after retesting its trendline support. Additionally, the Moving Average Convergence Divergence (MACD) indicator shows a bullish crossover as the MACD line crosses above the signal line, further bolstering expectations of continued upward price momentum.

Recommended Trading Levels and Risk Management

Geojit advises a buy entry in the Rs. 920 to Rs. 940 range, maintaining a disciplined stop-loss level at Rs. 830 to protect investors from downside risk. The anticipated upside target is Rs. 1,150, offering a potential return of approximately 26% in the medium-term (3-6 months). This trade setup balances an opportunity-rich risk-reward profile grounded in strong fundamentals and technical validation.

Key Financials At A Glance

Welspun’s consolidated revenue is forecasted to grow from Rs. 13,978 crore in FY25 to Rs. 20,707 crore by FY27, a compounded growth trajectory driven by rising demand and order execution. EBITDA is expected to swell from Rs. 1,684 crore in FY25 to Rs. 2,558 crore in FY27, with margin expansion from 11.9% to 12.4%. Adjusted PAT, excluding exceptional items, is poised to increase from Rs. 1,239 crore in FY25 to Rs. 1,720 crore in FY27. The company’s earnings per share (EPS) is projected to ascend from Rs. 47 to Rs. 66, signaling solid earnings growth.

Shareholding and Market Profile

Promoters maintain a dominant 49.8% stake, with mutual funds and institutional investors holding approximately 20.9%, and foreign institutional investors around 11.8%. Importantly, there is no promoter pledge on shares, enhancing shareholder confidence. The stock is part of major indices and carries a dividend yield of 0.55%. The company’s debt-to-equity ratio at 0.2 reflects its conservative leverage policy.

Final Takeaway for Investors

With a combination of robust quarterly earnings, a towering order book, strategic positioning in the booming U.S. energy infrastructure market, and strong technical signals, Welspun Corp stands out as an attractive investment opportunity. Geojit’s buy call, supported by fundamental strength and clear technical momentum, makes a compelling case for investors to capitalize on near-to-medium-term price appreciation with calculated risk parameters.