India's Welspun Corp hits over three-week high on positive growth view

Welspun

05/04/2023 07:52

** Shares of large diameter pipes maker Welspun Corp
 WGSR.NS  rise as much as 3.8% to 213.60 rupees, hitting their
highest level since March 13
    ** Analysts at Phillip Capital say they have a positive
outlook on co's acquisition of Sintex's plastic division as the
B2C business will provide better revenue stability than
Welspun's existing pipe business; maintain their "buy" rating
with TP of 275 rupees
    ** Sintex's plastic division continues to be cash-positive
despite running at sub-optimal levels - Phillip 
    ** Brokerage adds, with the effective cost of acquisition at
4.1 billion rupees ($49.90 million), expect the payback period
to be 4 years
    ** Stock of co on track for a fourth consecutive session of
gain, if trends hold
    ** Stock's moving average convergence divergence (MACD) line
above the signal line since March 31, indicating a bullish bias
    ** More than 522,000 shares change hands by 11:51 a.m IST vs
30-day avg of 623,320 shares

($1 = 82.1670 Indian rupees)

 (Reporting by Ashish Chandra in Bengaluru)
 ((ashish.chandra@thomsonreuters.com (+91 7982114624))