Welspun Corp Ltd.
NSE: WELCORPWelspun Corp Ltd.: A 30-second snapshot
Welspun Corp (WELCORP), an infrastructure pipe and tube manufacturer, trades at 1309 — up 71.6% over the past year and 56% over the past three months, reaching within 5% of its 52-week high. The stock carries a PE of 17.77 and a trailing profit margin of 11.85%, but a debt-to-equity ratio of 18.26 and a 5-year earnings CAGR of -33% stand as significant structural questions alongside the recent price momentum.
P/E
17.8
Forward P/E
18.5
ROE
—
Debt / Equity
18.26
Profit Margin
+11.8%
Div. Yield
+0.4%
5Y ROE > 15%
2/5
5Y FCF > 0
2/5
Quality
55/100
News
3 headlines · 3 positive · 0 negative
Welspun Corp Receives Large Order Worth 7 Billion Rupees - TradingView
TradingView
Momentum Stocks: Plastiblends India, Websol Energy hit upper circuit; Adani Power, Welspun Corp at 52-week high - TradingView
TradingView
Momentum Stocks: IIFL Finance, Tree House see negative breakdowns; GE Vernova TD, Welspun Corp, Hitachi Energy hits new high - TradingView
TradingView
Recent context
- ·Welspun Corp received a large pipe order worth 7 billion rupees in May 2026 (TradingView, 15 May 2026), adding to near-term order book visibility.
- ·The stock reached a 52-week high in late April 2026, appearing in multiple momentum-stock roundups alongside infrastructure and energy names.
- ·All 3 collected news items carry positive sentiment; there are no negative or neutral items in the current sample, though the thin sample warrants noting.
Strengths
- +PE of 17.77 is the lowest among 6 tracked Infrastructure peers — BEL trades at 51.9x, L&T at 33.4x, ABB at 86.8x, and CGPOWER at 108.5x — representing a meaningful valuation discount relative to the sector.
- +Price is above both the 50-DMA (1017) and 200-DMA (886), and the 52-week drawdown is only -4.97%, reflecting sustained upward price momentum over the past year.
- +Revenue grew at a 25.4% 5-year CAGR; a large order win of 7 billion rupees was reported in May 2026, indicating continued commercial pipeline activity.
- +Debt trend is classified as falling and the consistency score stands at 74 out of 100, suggesting some improvement in financial discipline even against the backdrop of high absolute leverage.
Weaknesses
- −Debt-to-equity of 18.26 is materially elevated for the Infrastructure sector; all named peers operate at significantly lower leverage, creating heightened sensitivity to interest rate movements and credit conditions.
- −5-year earnings CAGR of -33% indicates profitability has declined despite 25.4% revenue growth; the gap between top-line expansion and bottom-line contraction reflects an unresolved structural cost or financing burden.
- −Quality score of 34 ranks 4th of 6 peers; FCF was positive in only 2 of the tracked years and ROE exceeded 15% in only 2 years, pointing to inconsistent capital efficiency over the measurement period.
- −Analyst coverage is limited to 6 analysts, which reduces the confidence weight of the mean rating of 1.0 on the 1-5 scale (lower = more constructive); small analyst pools can exhibit higher consensus volatility.
Open questions
- ?Does the falling debt trend represent a genuine multi-year deleveraging path or a short-term working capital fluctuation, and at what D/E level does the company target to stabilize?
- ?How much of the 5-year earnings decline is attributable to financing costs on the elevated debt versus operational margin compression, and has either dynamic shifted materially in the most recent two years?
- ?The 7-billion-rupee order win is a positive signal for revenue visibility — but at the current profitability trajectory, what proportion of that order value translates to earnings, and is margin per order improving?
- ?With the stock 28.7% above its 50-DMA and RSI at 69.43, what has historically followed similar technical extension periods for WELCORP — has price consolidation been shallow or has it revisited the 200-DMA?
Peer comparison: Infrastructure
Ranks 4 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| WELCORP | Welspun Corp Ltd.You're viewing | 17.8 | — | 34 |
| Industry avg | across 5 peers | 69.4 | +18.3% | 40 |
| BEL | Bharat Electronics Ltd. | 51.9 | — | 57 |
| ABB | ABB India Ltd. | 86.8 | — | 47 |
| CGPOWER | CG Power and Industrial Solutions Ltd. | 108.5 | +19.6% | 45 |
| LT | Larsen & Toubro Ltd. | 33.4 | +16.9% | 26 |
| CUMMINSIND | Cummins India Ltd. | 66.5 | — | 24 |
Technical state
Current price
₹1,309.00
SMA 50
₹1,017.47
SMA 200
₹886.22
RSI (14)
69.4 (neutral)
From 52w high
-5.0%
1Y return
+71.6%
3M return
+56.0%
50-DMA
Above
200-DMA
Above
Algorithmic support levels
Risk flags
- highDebt-to-equity of 18.26 is substantially above infrastructure sector peers; L&T, BEL, ABB, and CGPOWER all operate at significantly lower leverage levels, raising debt-servicing concentration risk if order inflows slow.
- high5-year earnings CAGR of -33% contrasts sharply with 5-year revenue CAGR of 25.4%; profitability has contracted over the period despite strong top-line growth, indicating significant cost, interest, or below-the-line drag.
- mediumQuality score of 34 ranks 4th of 6 peers in the Infrastructure sector; ROE data is unavailable for WELCORP, FCF was positive in only 2 of the tracked years, and ROE exceeded 15% in only 2 years — persistency of returns is limited.
- mediumRSI of 69.43 is approaching overbought territory; price at 1309 is 28.7% above the 50-DMA (1017) and 47.7% above the 200-DMA (886); nearest support cluster is at 767-710, representing a 41-46% gap below current price.
- lowNews sample is thin at 3 items; all three carry positive sentiment, but the small sample limits the reliability of the overall sentiment label and may not reflect the full news environment.
Cross-section contradictions
- Stock is up 71.6% over 1 year and trades within 5% of its 52-week high, yet the 5-year earnings CAGR is -33% — price appreciation has substantially outpaced the earnings trajectory over the medium term.
- Revenue expanded at a 25.4% 5-year CAGR while earnings declined 33% over the same period; the divergence implies that cost structure or financing charges are absorbing the revenue gains.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 17 May 2026 · rotates through NIFTY 500 every ~5 days