Kotak Securities has buy on Welspun Corp, target price Rs 171

Kotak Securities has a buy rating on Welspun Corp in the long term with a target price of Rs 171. The stock ended flat at Rs 143.70 on Thursday while the BSE Sensex closed 38.44 points down at 39,020.39.

Company Financials

For the quarter ended 30-09-2019, the company has reported consolidated sales of Rs 2224.61 crore, up 11.08% from last quarter sales of Rs 2002.65 crore and down -2.85% from last year same quarter sales of Rs 2289.93 crore. The company has reported net profit after tax of Rs 103.07 crore in the latest quarter.


Investment Rationale

Welspun Corp's reported numbers in the second quarter were above estimates backed by stronger than expected performance from the US operations and sequential improvement in India operations, the brokerage said. In addition, to the strong operating performance, strong performance from the Saudi operations also supported PAT growth, the brokerage said.