Jefferies bullish on Welspun Corp with Buy rating, Rs 3,250 target

Welspun Corp shares rose nearly 6% on Thursday after Jefferies initiated coverage with a Buy rating and a Rs 3,250 target price, implying 27% upside, citing a multi-year upcycle in US and Saudi energy infrastructure spending. The brokerage highlighted Welspun's local manufacturing presence, capacity expansion, and robust order book as key strengths. It expects US midstream capital expenditure to reach $240 billion during 2026-30, with Welspun holding an estimated 30% share of the US large-diameter line-pipe market. Jefferies projects Welspun's total capacity to increase 51% by FY27, supporting a 17% volume CAGR and 32% EBITDA CAGR through FY29. The order book stands at Rs 42,100 crore, with key risks including slower order inflows and margin pressure from competition.