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Last Updated : Apr 01, 2019 03:35 PM IST | Source: Moneycontrol.com

Buy Welspun Corp; target of Rs 161: Kotak Securities

Kotak Securities is bullish on Welspun Corp has recommended buy rating on the stock with a target price of Rs 161 in its research report dated March 28, 2019.

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Kotak Securities' research report on Welspun Corp


Welspun Corp (WCL) is a leading global manufacturer of large diameter pipes with an installed capacity of 2.4 Mn tonnes. Given its presence in USA, Saudi Arabia and India, we believe that, the company is better placed compared to its peers in terms of tapping the global market opportunity of over US$400 bn. At the end of Feb’19, WCL’s order book stood at Rs145 bn, to be executed over the next 15-18 months, thereby providing strong revenue visibility. We expect Welspun Corp to register growth of ~11% CAGR in revenue during the FY18-FY21E period, while PAT is expected to grow at 31% CAGR during the same period, on back of improvement in operating performance and decline in interest outgo.


Outlook


At current valuations, WCL is currently trading at 5.5x/4.2x/3.2x FY19E/FY20E/FY21E EV/EBITDA, which in our view is attractive. We initiate coverage with BUY rating and a target price of Rs.161.


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.




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First Published on Apr 1, 2019 03:35 pm
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