From ₹79 to ₹937: Welspun Corp Delivers 1,075% Multibagger Returns in 5 Years

In a remarkable wealth-creation story, Welspun Corp Ltd., the flagship company of the Welspun Group, has delivered a staggering 1,075% return over the past five years. From trading around ₹79 in mid-2019 to touching ₹937 in June 2025, the stock has emerged as a true multibagger, rewarding patient investors handsomely.

This phenomenal rally comes on the back of strong fundamentals, aggressive capacity expansion, consistent order inflows, and a strategic pivot towards high-margin segments, including ductile iron pipes and specialized steel offerings.

A Steady March to ₹937: What Powered the Rally?

Welspun Corp’s rally has not been sudden but a result of years of strategic planning and execution.

The company, traditionally known for its large-diameter line pipes catering to oil and gas majors, diversified its business model to include ductile iron pipes, stainless steel products, and infrastructure services, which has helped it withstand sectoral slowdowns and global volatility.

From FY20 to FY24, revenue rose from ₹6,400 crore to over ₹10,800 crore, while net profit increased nearly four-fold. The EBITDA margin improved significantly, reflecting better product mix and operational efficiencies.

“We have repositioned ourselves as a diversified player in water, oil & gas, and infrastructure solutions. This diversification has helped smoothen cyclicality in our business,” said Vipul Mathur, MD & CEO of Welspun Corp, in a recent earnings call.

Capacity Expansion and Strategic Acquisitions

Welspun Corp has invested heavily in expanding its manufacturing capacity, particularly in ductile iron pipes — a segment that has seen robust demand due to government-led Jal Jeevan Mission and urban infrastructure projects.

The company also completed the acquisition of Sintex-BAPL’s piping division and has been ramping up exports to markets in the Middle East, the US, and Africa. These moves have not only strengthened its product portfolio but also widened its global footprint.

“Welspun’s smart capital allocation and focus on value-added products are driving earnings visibility. The ramp-up in DI pipes is a long-term growth lever,” said Ankit Sinha, Senior Analyst at Axis Securities.

Investor Sentiment and Institutional Confidence

Institutional investors have taken notice of the turnaround. According to March 2025 shareholding data, mutual funds and foreign portfolio investors (FPIs) have gradually increased their stake, reflecting growing confidence.

In FY24 alone, the stock surged over 150%, significantly outperforming the Nifty 500, which rose around 28% during the same period. Strong order book visibility, margin expansion, and dividend payouts have added to investor enthusiasm.

Welspun Corp’s 5-year CAGR return stands at 67%, a rarity even among top-tier midcap performers.

Market Context: Riding on Macro Tailwinds

India’s infrastructure push has been one of the biggest tailwinds for companies like Welspun Corp. With budgetary allocations to water projects, housing, and smart cities, demand for steel and piping products has remained strong.

Globally, pipeline infrastructure demand has been robust, especially in the Middle East and the US, where pipeline rehabilitation and new projects are picking pace. Welspun Corp, with its US manufacturing facility and compliance with API (American Petroleum Institute) standards, is well-positioned to tap into this demand.

“While raw material volatility remains a concern, Welspun’s diversified procurement strategy and backward integration have helped cushion the impact,” noted Rohit Chatterjee, energy and infrastructure sector expert at JM Financial.

Technicals and Valuation

From a technical standpoint, Welspun Corp has shown strong breakout patterns over the past 18 months, consistently trading above key moving averages. With a 52-week low of ₹386 and a high of ₹944, the stock has delivered over 135% returns in the last year.

Despite the rally, some analysts still see headroom.

“At ~₹937, the stock trades at 12.5x FY26 estimated earnings, which is reasonable given the earnings visibility and ROCE expansion. Investors with a 2–3 year horizon can still find value,” said Priya Desai, Equity Strategist at Motilal Oswal Financial Services.

Risks to Watch

No investment is without risks. For Welspun Corp, the key concerns include:

• Raw material price volatility, especially steel and coal

• Delays in infrastructure project execution

• Geopolitical disruptions affecting exports

• Currency fluctuations impacting international earnings

However, the company’s increasing share of domestic business and diversified global contracts offer some insulation.

Investor Outlook: Is the Rally Sustainable?

With a robust order book, diversified revenue streams, and consistent profitability, Welspun Corp has transformed itself from a cyclical commodity player into a value-driven industrial leader.

For investors, the 10X rally in 5 years is both an inspiration and a reminder of what patient, value-based investing can yield.

While near-term corrections are possible after such a steep run, long-term investors with risk appetite can look at Welspun Corp as a core infra-play in their portfolio.

As India and global economies continue to focus on clean water access, energy security, and pipeline infrastructure, companies like Welspun Corp appear to be in the right place at the right time.