LIC-Backed Midcap Stock Is Up 4% After Bagging Another Major Order

Welspun Corp’s shares were on the up on Wednesday following the company’s announcement of a new contract to supply LSAW pipes, coating, and bends in Latin America. The stock surged up over 4% to hit an intraday high of ₹586.55.

What Happened: The contract, valued at ₹611 crore, is set to be executed in the fiscal year 2024-25, according to a stock exchange filing by the company. Welspun Corp anticipates receiving a notice to proceed with the purchase order by the second week of May.

This announcement comes on the heels of Welspun Corp revealing that it had secured orders worth ₹872 crore over the past month for supplying multiple-line pipes in India and the United States, with these also scheduled for execution in FY25.

Among these orders, one significant contract includes supplying coated LSAW pipes and bends for an essential oil transportation project in the Middle East, intended for extreme sour service application.

See also: Tata Consumer Q4 Profit Crashes 20% To ₹216 Cr

Furthermore, last month, the company secured additional line pipe orders in both India and the US, amounting to ₹2,039 crore. Additionally, Welspun Corp has disclosed plans to boost the operations of Sintex, the plastic water tank manufacturer it acquired in March 2023, targeting substantial growth over the next four to five years.

As part of its growth strategy, Welspun Corp aims to expand its offerings to include plastic pipes, leveraging the Sintex brand and distribution network.

Price Action: Welspun Corp. Ltd. shares were trading 2.61% higher at ₹576.40 on Wednesday after markets opened for trading.

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