Mutlibagger Stock: This LIC-backed pipe manufacturer hits 12-year high on Monday – what lead the surge? – Zee Business

Life Insurance Corporation of India (LIC), which is also considered a domestic institutional investor, held 1,53,62,312 equity shares or 5.89 per cent stakes in Welspun Corp, as per the June shareholding pattern.
Multibagger Stock: Shares of Welspun Corp Limited touches a 12-year high of Rs 271.95 per share, after surging around 10 per cent on the BSE intraday on Monday. The multibagger stock, which has gained over 118 per cent in a year, closed almost 8 per cent higher to Rs 266.75 per share on the BSE. 
Life Insurance Corporation of India (LIC), which is also considered a domestic institutional investor, held 1,53,62,312 equity shares or 5.89 per cent stakes in Welspun Corp, as per the June shareholding pattern of the company available on the BSE. 

Welspun Corp share price jumped on the back of securing a significant order for a Carbon Capture Pipeline project in the United States, the company said in a regulatory filing. 
“This order is for the supply of 785 miles (1,256 KM) or 100,000 MT (approximately) of High-Frequency Induction Welding (HFIW) pipes, and would be used for transporting captured carbon dioxide, Welspun Corp further pointed in an exchange filing on Saturday. 

It added that the pipes will be produced from Little Rock plant in the US and the same will be executed in FY 23‐24. 
Kotak Securities said that the situation has improved on the ground for the pipes business with a recovery in oil prices from its low to over US $90/barrel. The near-term profitability would be driven by local business, while US operations also contribute meaningfully from FY24E, it added. 
Diversifying in to Ductile Iron segment, contribution from the steel business, and execution of orders in India would drive the earnings in the near term, Kotak Securities said, foreseeing a meaningful contribution coming from the US business starting FY24, which would drive earnings thereafter.  
Hence, the domestic brokerage believes that the profitability to improve for Welspun in the near to medium term and foresees strong cashflow generation starting FY24. 
Welspun Corp is a flagship company of the Welspun Group and pipe manufacturer with a capacity to manufacture Longitudinal (LSAW), Spiral (HSAW), and HFERW / HFI (ERW) pipes.  
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