Stock Of The Day: Welspun Specialty Wins Rs 117 Crore Order — Key Levels
The contract is for supply of seamless stainless steel boiler tubes for National Thermal Power Corp.'s Talcher Super Critical Thermal Power Project.
Shares of Welspun Specialty Solutions Ltd. surged over 18% the most in nearly five months on Monday after it emerged as the lowest bidder for a Rs 117 crore contract from Bharat Heavy Electricals Ltd.
The contract is for supply of seamless stainless steel boiler tubes for National Thermal Power Corp.'s Talcher Super Critical Thermal Power Project (2 X 660 MW).
Shares of the company rose 18.2% intraday, before paring gains to trade 11.95% higher at Rs 42.35 per share at 10:39 a.m. The stock has risen 7.27% year-to-date.
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Key Levels
Resistance level: Rs 46 per share (life high).
Support level: Rs 37.35 per share (two-day low).
Management Outlook
New product introduction and development is expected to continue, with more grades planned for fiscal 2025, according to the management.
It also foresees 20-30% overall volumes and topline growth in fiscal 2025. There are no immediate plans for volume expansion, it said, as the focus is on utilising existing capacities efficiently.
The company's order book at the end of fiscal 2024 stood at over 4,100 tonnes, valued at about Rs 166 crore. The management expects 20-30% growth going forward in fiscal 2025.
Welspun Specialty FY24 Result: Highlights (YoY)
Revenue rose 66.7% to Rs 697 crore.
Ebitda rose 234% at Rs 55.8 crore.
Margin expanded 400 basis points to 8%.
Net profit at Rs 62.5 crore versus net loss of Rs 13.7 crore.
The company recognised deferred tax assets in fiscal 2024, amounting to Rs 33.9 crore.
