See a good upside for Welspun Corp: Ashit Suri, JV Capital Services

Ashit Suri, Fundamental Research Analyst, JV Capital Services, in a chat with ET Now talks about Welspun Corp.

What are your thoughts on Welspun Corp? What is the key investment rationale that you are seeing in the company for this one?

Welspun Corp is into submerged arc welded pipes and it caters to the oil and gas space. Now with oil hovering around $80 per barrel mark, companies like Welspun are likely to see renewed interest and 80% of its revenues are generated from its international operations. There is a huge replacement demand which is expected from the US going ahead.

Even as on March 31, the order book to sales ratio is around 1.4, which is pretty strong. If one is look at the valuations on an expected EPS for FY11, the stock is trading at just eight times PE multiple. So keeping these factors, I see a good upside for Welspun Corp and levels of around 320-330 in the medium term.