Amid stock market volatility, one stock has significantly enriched investors, increasing their funds by more than threefold in a short period. This concerns Wellspun Corp, which demonstrated sharp growth immediately after the market opened on September 3 and reached an all-time high.
Meanwhile, brokerage firm Jefferies issued a recommendation to buy this stock, assigning it a 'Buy' rating and setting a target price of 3250 rupees. This suggests that from the closing price of 2524 rupees on September 2, the stock could rise by approximately 29 percent.
The brokerage firm notes that spending on oil and gas infrastructure in America and the Middle East is in a phase of multi-year growth, and Wellspun can benefit as the company is involved in production in both sectors. Jefferies expects the company's volume to grow at a Compound Annual Growth Rate (CAGR) of 17 percent between FY26 and FY29, with EBITDA and EPS reaching 32–33 percent.
Wellspun Corp is increasing its production capacity by 50 percent in America and Saudi Arabia, which will support the company's revenue growth. Furthermore, the share of foreign business with higher margins in the company's total revenue is increasing. Orders for the company amount to 42,100 million rupees, which is approximately 2.5 times the company's revenue for FY26.
The broker states that the company's net cash position was 1400 million rupees at the end of fiscal year 2026, and it is expected to reach 3900 million rupees by fiscal year 2029. In its report, Jefferies also indicated that the company's Return on Equity (RoE) was 21 percent during FY24–26 and could reach 22–23 percent in the future.
In the last month, Wellspun Corp has grown by 54 percent, and over six months, it has tripled investors' funds, showing a return of 233 percent. Over the year, this stock has shown a growth of 210 percent.