Asit C Mehta maintains ‘buy’ on Welspun Gujarat

Welspun Gujarat
cmp: Rs 103.60
target price: Rs 190

Asit C Mehta Investment Interrmediates has maintained a ���buy��� rating on Welspun Gujarat Stahl Rohren while lowering the price target from the earlier Rs 500 to Rs 190 as it expects a slowdown in orders due to the current global credit crisis. ���Though there exists a significant opportunity for pipe manufacturing companies, the current global crisis may delay investments in oil & gas exploration and transportation. This may have a negative impact on order inflows in the future,��� says the report. Welspun Gujarat, with approximately 90-95% of sales coming from exports is not immune from the effects of the current credit crisis, it goes on to add. The report also notes that the company has decided to curtail its production of commercial grade steel pipes due to the weak industrial demand for steel.