The target implies an upside of around 29% from Wednesday’s closing price of ₹2,524.
According to Jefferies, Welspun Corp is well positioned to benefit from a multi-year upcycle in oil and gas infrastructure spending in the US and the Middle East, supported by its local manufacturing presence in both regions.
The brokerage expects Welspun Corp to deliver a 17% volume CAGR and 32-33% EBITDA and EPS CAGR over FY26-29E, driven by capacity expansion, a strong order book and an improving business mix.
Jefferies expects the company’s earnings growth to be supported by a 51% expansion in capacity across the US and Saudi Arabia, alongside a rising contribution from its higher-margin overseas business.
Welspun Corp’s order book stood at ₹42,100 crore, equivalent to around 2.5 times its FY26 revenue, providing strong visibility on future revenue, according to the brokerage.
Jefferies also expects the company’s net cash position to increase from ₹1,400 crore at the end of FY26 to ₹3,900 crore by FY29E.
The brokerage said that Welspun Corp generated a 21% return on equity (ROE) over FY24-26 and expects this to improve to 22-23% over FY27-29E.At 18 times one-year forward EV/EBITDA, Jefferies believes the stock’s valuation remains reasonable. While the multiple has expanded in 2026, the brokerage believes a premium valuation is justified by the company’s strong earnings growth outlook, robust order book and high ROEs.
Compared with US energy infrastructure beneficiaries, Welspun Corp also appears reasonably valued relative to its EBITDA growth and price-to-book relative to ROE, Jefferies said.
The key risks to its view include slower-than-expected order inflows and delays in capacity expansion.
Welspun Corp shares ended 1.16% lower at ₹2,524 on Wednesday. The stock has rallied more than 47% over the past month.
