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Last Updated : Apr 23, 2019 04:36 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 April 22, 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. With the execution and addition of the latest order of 180KT, the company order book at the start of FY20 now stands at 1.66 MT (in terms of revenue Rs141 bn), to be executed over next 15-18 months. At the end of FY19, WCL has entered into an agreement to sell PCMD division and 43MW power plant, at a consideration of Rs9.4 bn, this will make balance sheet further leaner, post the completion of the transaction i.e. by the end of Dec'19. With the leaner balance sheet and completion of capex cycle, Free Cash Flow is expected to improve backed by strong operational performance. We continue to maintain our positive view on the stock and reiterate BUY, with an unchanged target price of Rs161.


Outlook


We continue to maintain our positive view on the stock and reiterate BUY, with an unchanged target price of Rs161.


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.

First Published on Apr 23, 2019 04:36 pm
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