Welspun Corp Limited

Basic Materials — Steel · NSE

₹2,572.00+₹85.10 (+3.42%)

DalalBaazaar Score

72 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

No individual risk factor stands out on this snapshot.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

The 60-second version of Welspun Corp Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Welspun Corp Limited, together with its subsidiaries, manufactures, trades in, distributes, and sells steel pipes, tubes, bars, coils, and plates in India, the United States, and internationally. It operates through Steel Products and Others segments.

IndustrySteel

SectorBasic Materials

Employees9,300

Annual revenue₹16,209 Cr

How does it make money?

Turns over ₹16,209 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹17 left at the operating level before interest, tax and depreciation. Each of its 9,300 employees supports ₹1.74 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.74 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, JINDAL STEEL LIMITED, STEEL AUTHORITY OF INDIA. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 19.5% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE10.8%

What is the outlook?

8 analysts covering the stock expect revenue to grow about 33.2% and earnings to grow about 30.3% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+33.2%

Est. earnings growth+30.3%

Analysts8

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +71% while net margin moved +357% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+71%

Margin effect+357%

DalalBaazaar Score

72/ 100

Good

Weighted across six categories. Every point is explained below.

• P/E of 29.4x already prices in growth
✗ P/E is 35% above its own historical median of 21.8x — expensive by its own standards
✗ P/B of 7.41x is a steep premium to book

Quality vs. Valuation

Company Quality

82/ 100

Excellent

How good the business is, ignoring the share price entirely.

Valuation

38/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

29.4x

3Y Median

21.8x

40 monthly readings · mean 33.7x · range 10.1x–81.2x

Sector Median

18.2x

median of 4 sector peers

⚠️Current valuation is approximately 35% above its 3y median of 21.8x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 62% above the peer median of 18.2x.

vs. its own history

Expensive

21.8x median over 40 months · +35%

vs. sector peers

Expensive

18.2x median of 4 peers · +62%

vs. generic bands

Fair

15x–35x

EV/EBITDA

25.4x

PEG

0.30

What's Good / What's Bad

🟢 What's Going Well7

Margins are improving
EBITDA margin is up from 7.0% to 16.7% over 3 years.
Debt is being paid down
Total debt is down 30% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from 4.4% to 17.6%.
Return on capital is rising
ROCE has improved from 7.8% to 19.5%.
Very low debt
Debt/Equity of 0.25x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 19.5% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 7.0% to 16.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 30% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹672 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

The price already assumes success
The stock trades 35% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 15% a year✓ 19.5% CAGR
Latest reported year was 14.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 15%✓ 16.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹672 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 16%✓ 19.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

12 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

7 good · 3 neutral · 1 weak

Market Cap

₹67,825 Cr

Mid Cap

Mid-sized — more growth headroom, but sharper swings than large caps

P/E (Trailing)

29.4x

Fair

Fairly valued against the generic band

P/B Ratio

7.41x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹87.53

Profitable

Profitable on a per-share basis

ROE

17.6%

Strong

Strong capital efficiency

ROCE

19.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.25x

Low

Conservative leverage

Revenue Growth (YoY)

14.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

198.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.19%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹672 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

22.9x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

13.9%

Average

Average margins

Net Margin

13.3%

Good

Strong bottom-line conversion

Current Ratio

1.33

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.58

Defensive

Steadier than the market

52W Range Position

85%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

2687.5 / 2438.2

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

40.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹9,487 Cr	₹16,896 Cr	₹13,322 Cr	₹16,209 Cr	+19.5%
EBITDA	₹667 Cr	₹1,916 Cr	₹2,043 Cr	₹2,707 Cr	+59.5%
EBITDA Margin	7.0%	11.3%	15.3%	16.7%	—
PAT (Net Profit)	₹207 Cr	₹1,110 Cr	₹1,908 Cr	₹1,613 Cr	+98.4%
EPS	₹7.89	₹42.32	₹72.44	₹61.2	+98.0%
ROE	4.4%	19.8%	25.6%	17.6%	—
ROCE	7.8%	21.7%	28.9%	19.5%	—
Total Debt	₹3,345 Cr	₹1,930 Cr	₹1,083 Cr	₹2,357 Cr	-11.0%
Free Cash Flow	-₹1,379 Cr	₹1,007 Cr	₹651 Cr	₹672 Cr	—

🟢 Revenue has grown at 19.5% a year over 3 years.

🟢 EBITDA has grown at 59.5% a year over 3 years.

🟢 EBITDA Margin has risen from 7.0% to 16.7% over 3 years (+9.7 pts).

🟢 PAT (Net Profit) has grown at 98.4% a year over 3 years.

🟢 EPS has grown at 98.0% a year over 3 years.

🟢 ROE has risen from 4.4% to 17.6% over 3 years (+13.3 pts).

🟢 ROCE has risen from 7.8% to 19.5% over 3 years (+11.7 pts).

🟢 Total Debt has shrunk at 11.0% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹1,379 Cr to ₹672 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹20,434 Cr

Total Liabilities

₹11,028 Cr

Cash & Equivalents

₹1,513 Cr

Operating Cash Flow

₹3,204 Cr

Capex

-₹2,532 Cr

Shareholding (proxy)

Institutional Holding

32.4%

Insider Holding

49.8%

Corporate Actions

Dividend Rate

₹5

Ex-Dividend Date

30 Jun 2026

Analyst Consensus

Recommendations

7 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹2,751.06

+7.0% vs CMP

Target Range

₹2,233 – ₹3,145

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
JINDAL STEEL LIMITED	39.1x	5.3%
STEEL AUTHORITY OF INDIA	16.5x	7.1%

Recent News

1 positive1 mixed4 general

Welspun Corp Share Price Update: Market Cap Rs 72,049 Cr

Univest, 15 Oct

Welspun Corp US facility ready to handle ₹4,000 crore pipe orders

scanx.trade, 18 Oct

Welspun Corp shares surge 230% YTD: Should investors buy this multibagger stock ahead of Q2 results? Experts suggestion

Livemint, 16 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Compare Welspun Corp with

Equitymaster, 18 Oct

Welspun Corp jump 5% as US arm wins ₹4,000 cr order; up 4-fold from Feb low

Business Standard, 25 SeptOrder win

🟢Potentially positiveAn order or contract win, which adds to future revenue. How much depends on its size against annual sales and on when it is executed.

Capital Group, Aberdeen, Others Buy 2.4% Stake in Welspun Corp for Rs 1,433 Cr; Stock Hits 52-Wk High

HDFC Sky, 27 Aug

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

MiddlingRisk

WeakValuation

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you.

All 5 tripwires holding · see Key things to watch ↑