Are you ready to get 2332% Return if yes please Read descriptionHello Everyone, i hope you all will be doing good in your trading and your life as well, i know you guy's have to read about this stock which can give 2332% returns. So i am talking about welspun corp stock which has given breakout and retested the breakout zone on monthly time frame. Well i have written many things on chart about these, but still i will explain about this stock here too, but for the levels you have to go through chart above.
1st of all stock has given huge breakout after almost 16 years, and stock is sustaining above to this breakdown zone, All major indicators like, MACD AND RSI showing bullish crossover, price is above 200=DEMA, everything looks positive about this stock. So this is the best time to enter and hold for long term, now come about returns which i have mention on title, how will you get this much of returns in this stock if you invest now, 1st of all if you check major pattern on monthly chart, it is kind of triangle pattern right, in tringle pattern we always expect whatever inside higher length size will be we will expect that target for next move after breakout of triangle pattern. So if you check i have measure same length and i found stock has rallied 2332% in between, so i am expecting same. See guy's in longer term company always take some corporate action like, bonus and split so we might can see price differentiation on chart, but to calculate exact returns, you have to measure from today's date when i am publishing this post.
i hope this have been clear, one thing i have written on chart as well, i am just going to do copying and paste here as well just read this is very important:-
((Friends, if you check inside the monthly chart analysis, you will see that many types of chart patterns were formed, many trendlines and supports were found breakout or breakdowns which occurred many times, but now in the long term the stock has given all time high breakout. which Formed in 2008, my point here to tell you all this is that if you think for long term you will never care about these noises, so if the company is good we should always find opportunity to invest and whenever we have any type correction in stock, we should take as another opportunity to add more at down levels. i hope i have explain clearly about long term investing method.))
i think this is one of the best idea or method to get best appreciation in returns in long term on your stock. So i am expecting you guy's have learned these unique techniques in investing world. if you think i have really teach you something best then do not forget to hit like on this post.
NOW LET'S READ ABOUT THE COMPANY AND IT'S FUNDAMENTAL:-
WCL is one of the largest manufacturers of large diameter pipes globally. The company also manufactures BIS-certified Steel Billets, TMT (Thermo-Mechanically Treated)
Rebars, Ductile Iron (DI) Pipes, Stainless Steel Pipes, and Tubes & Bars. The company acquired Sintex-BAPL, a market leader in water tanks and other plastic products, to expand its building materials portfolio. It has also made strategic acquisition of specified assets of ABG Shipyard.
Growth Strategy:-
The Company has been undergoing a transformation journey since past couple of
years by diversifying into related businesses that have good future growth potential. Setting up of DI Pipes facility in Anjar, Gujarat and acquisition of Sintex BAPL are a part of that strategy.
Product Portfolio:-
The product portfolio of the company comprises HSAW Pipes (Helically Welded), LSAW Pipes (Longitudinally Welded), and ERW Pipes (Electric Resistance Welded) for Onshore/Offshore Oil, Gas, and Water Transmission it also provides Coating System for anti-corrosion and Value-added Service like Double Jointing, Pipe Bending, ID Machining, etc.
In Q3FY24, Sintex finalized its foray in Plastic Pipes segments through different types of PVC Pipes including CPVC, HDPE, UPVC and OPVC.
Growth in Pipes Business:-
DI Pipes sales - 9MFY24 sales volume rose almost 10x YoY to 135 KMT. Stainless Steel Bars sales volume grew by 201% YoY to 12,294 MT while, Pipes & Tubes sales volume rose by 23% YoY to ~3,667 MT during 9MFY24.
DI Pipes in Middle East:-
In Feb,24, company is planning to set up a 150 KMTPA DI Pipes manufacturing facility in the Middle East with an investment of ~Rs. 500 crore over next 4-6 quarters. The investment will be made through a combination of debt and equity. The plant is expected to commence commercial production by H1CY25.
Market Cap
₹ 17,538 Cr.
Current Price
₹ 669
High / Low
₹ 671 / 300
Stock P/E
15.8
Book Value
₹ 215
Dividend Yield
0.75 %
ROCE
21.6 %
ROE
21.5 %
Face Value
₹ 5.00
Industry PE
19.7
Debt
₹ 1,949 Cr.
EPS
₹ 42.4
Promoter holding
50.1 %
Intrinsic Value
₹ 587
Pledged percentage
0.00 %
EVEBITDA
8.91
Change in Prom Hold
0.18 %
Profit Var 5Yrs
94.2 %
Sales growth 5Years
14.1 %
Return over 5years
37.0 %
Debt to equity
0.35
Net profit
₹ 1,136 Cr.
ROE 5Yr
14.4 %
Profit growth
656 %
Earnings yield
9.33 %
PROS:-
Company has reduced debt.
Company is expected to give good quarter
Company has delivered good profit growth of 94.2% CAGR over last 5 years
Company has been maintaining a healthy dividend payout of 34.9%
CONS:-
Stock is trading at 3.12 times its book value
Company has a low return on equity of 12.2% over last 3 years.
Disclaimer:- Please always do your own analysis or consult with your financial advisor before taking any kind of trades.
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