SIP Stock with Anil Singhvi – Welspun Corp – ACCUMULATE this stock at every level

SIP Stock With Anil Singhvi – Welspun Corp - In today’s edition of Strong Investment Portfolio (SIP) Stock with Zee Business Managing Editor Anil Singhvi, Research Analyst Ashish Chaturvedi recommends a stock that would give high returns to the investors

ZeeBiz WebTeam | Apr 12, 2021, 02:11 PM IST

SIP Stock With Anil Singhvi – Welspun Corp - In today’s edition of Strong Investment Portfolio (SIP) Stock with Zee Business Managing Editor Anil Singhvi, Research Analyst Ashish Chaturvedi recommends a stock that would give high returns to the investors.

 

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Welspun Corp Businesses

Welspun Corp Businesses

Chaturvedi recommended Welspun Corp - a company which manufactures pipes for companies in the oil and gas sector boasts of an enviable list of clients including Saudi Aramco, British Petroleum, Total, Reliance Industries. The business operations are not just limited to India, he said adding that 21 per cent of its revenue comes from the US where it has a manufacturing unit. 

Around 15 per cent comes from its Saudi Business, he further said. 

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Welspun Corp Order Book

Welspun Corp Order Book

Welspun Corp has an order book worth Rs 5,300 cr while the market cap is only around Rs 4000 cr. He said that the order book is likely to go up, going forward. The government oil and gas companies are expected to increase their capex by 50 per cent in this financial year to 3 lakh cr, he added. 

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Welspun Corp Financials

Welspun Corp Financials

The EBIDTA of Welspun Corp is expected to improve further as the balance sheet of the company is very strong, he said. The company has reduced its debts significantly and is virtually debt free now. 

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Welspun Corp Promoter stake

Welspun Corp Promoter stake

The trust of promoters and foreign investors on this company is only growing. Both have increased their stakes in the company. The promoter stake was around 47.49 per cent in June 2020 while the FIIs held around 8.20 per cent. This increased to 50.02 per cent and 12.19 per cent by December 2020.

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Welspun Corp - Market Guru Anil Singhvi Take

Welspun Corp - Market Guru Anil Singhvi Take

Market Guru also called this stock excellent and gave two major reasons why this company was very strong. The company has a large cash in hand at Rs 974 at a time like this, he said. This translates into Rs 70 cash per share. 

The promoters and FIIs raised stakes in the company during the last quarter and this is the second most important aspect about Welspun Corp, Singhvi said. 

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Welspun Corp - Expert Take

Welspun Corp - Expert Take

Top Stocks to Buy – Welspun Corp – Expert Kunal Saraogi said that the stock is comfortably placed on the technical charts. A big upside is open now. He sees the target price at Rs 200 – a 25 per cent upside from the existing levels. It is also the resistance level, he said. 

This stock was trading around Rs 154 at the time of recommendation. He said that it augured for the investors that the stock markets are struggling. The valuations of this stock are attractive and hence it should be accumulated, Singhvi said.