The Hindu Business Line : Welspun stock sees renewed buying interest

Brokers said expectation of better numbers is keeping alive interest in this counter. It reported dismal Q1 numbers. The company results are expected around the third week of October.

The company bagged two huge orders this year - a Rs 407-crore export order from Libya and a Rs 500-crore order recently for supply of pipes for a pipeline project in the US. It currently has Rs 1,000-crore odd order book, which is expected to sustain revenue and earnings potential over the near future.

Analysts maintain that the company's stock, which had been beaten down due to its dismal Q1 numbers, is witnessing a gradual turnaround in sentiment.

"The market is slowly discounting the Q1 performance. The strong order book, its future projects all point towards sustainability in earnings. However steel pries and its availability continue to remain an area of concern," a senior analyst with a reputed broking house said.

When contacted, company officials told Business Line that the company has an order book of Rs 1,100 crore-Rs 1,200 crore.

"Our future prospects in the oil and gas sector - domestically and internationally - underline the fact that we have a good chance to grow in the industry. The only hurdle could be steel prices. Apart from a strong order book, we also have other projects in the pipeline like the soon to be announced GAIL tender. We are looking at expansion of half million tonnes by March 2005. Going forward, this will help us double our bottomline," a company official said.

Commenting on the input problems in the first quarter that had impacted the company's performance adversely, officials said the issue had been resolved.

The stock ended the day at Rs 41.65, up 4 per cent, with around 28.87 lakh shares traded on the BSE.