The Stock for "NO LOSS NOVEMBER"- "WELSPUN CORP LTD"

Welspun Corp Ltd is the second largest manufacturer of large diameter pipes in the world based in Mumbai, Maharashtra. It is a flagship company of the $3 billion (₹129 billion) Welspun Group. The US$ 3.5 billion Welspun Group is one of India’s fastest growing conglomerates having registered a CAGR of 30% over the last decade. It conduct a 1.65 mtpa plant in Anjar, Gujarat which is being increased to 2.1 mtpa .This company’s pipe and coating facility is spread across 740 acres and has an annual capacity of 350,000 tons. The company has five business are Pipes, Plates & Coils; Home Textiles; Steel; Infrastructure; and Energy. In the first two is verticals. 
Technical Chart


The company Best in - HFW (High Frequency Welded), ERW (Electric Resistance Welded), HSAW (Horizontal Submerged Arc Welded), LSAW (Longitudinal Submerged Arc Welded), Plates & Coils, Bends and a portfolio of Coatings for the most critical applications. 
  • Some company's projects in recent times include large off shore and on shore projects which have an American multinational energy corporation, American natural gas and crude oil Pipeline Company and an Indian conglomerate holding company. 
  • The company Bestowed By FICCI and Nace International for FICCI Quality Systems Excellence Award for Manufacturing and Nace International Corrosion Awareness Award in 2014 
  • In the Line Pipe sector Welspun has to its credit some of the most famed projects including the world’s deepest pipeline project in the Gulf of Mexico, U.S.A, heaviest pipeline project in the Persian Gulf, highest LNG pipeline project in Peru and longest pipeline project from Canada to the US 
  • The company submitted a proposal to Madhya Pradesh State Industrial Development Corporation to reestablishment the Dewas Industrial Water Supply Project under the Madhya Pradesh Infrastructure Development. 
  • Some company's pipe client Abu Dhabi Gas Industries (GASCO), Anadarko Petroleum Corp USA, Bharat Petroleum Corporation Limited etc. 
Fundamental Analysis 

Welspun corp has a market capitalization of 3886.89 crore and turnover of 4482.56 crore.The company has a strong foothold in more than 50 Countries, employs over 24,000 people and has as many as 100,000+ shareholders. The company has reduced net debt by approximately 2,500 millionover the year.The company is prepared to meet the growing demand and is in a position to meet the stringent requirements and standards of high-grade line pipes. It plans to increase the capacity of its pipe plant by 75% to 1.75 million tons to meet growing demand for oil pipelines. 
  • The stock has Price to Earnings ratio of 14.51 and its Industry P/E is 23.76. It shows it is an undervalued stock in its industry 
  • It’s Price to Book value is 2.15 also not very high. And EPS (Earning per share is also fair at 10.10 
  • The company’s 2nd quarter result is expected to declared on 30 October and Financial analysts expects a positive result 
  • It stands at number 3 among its competitors Jindal Saw, APL Apollow and Maharastra Seamless 
  • The company has reduced its debts. 
Fundamentals
Market cap
3886.89 cr.
Face value
Rs. 5
Book value
Rs. 107.86
EPS
Rs. 10.10
52 Week H/L
Rs. 146/55.05
Listed at
NSE/BSE
P/E Ratio
14.51
Industry P/E
23.76
The Welspon Corp gains nearly 75% from the last one year. The stock is very strong on technical charts. It was in a tight consolidation range from one month and on Friday 27 October it gave break out above resistance level of 146 and also sustains above this resistance level. If we draw a trend line on daily chart from the low of 24 May 2017 then it also supports the uptrend. On Weekly chart the stock formed a Rounding Bottom pattern and a strong break out is expected in the next week. 
  • The break out of Rounding bottom pattern is expected above 157
  • Earlier in December 2010 and January 2011. 145-148 was the potential reversal zone 
  • In February 2012 and August 2010 the stock fell down from nearly 150 level and so If it breaks above these levels a strong bull rally is expected 
  • 21 day EMA works as a strong support and stock is likely to bounce back if it fell down on 21 day EMa 
  • 130 is the strong support level and should be hold buy the stock in orderto continue strong up trend. 
  • Buy Welspun Corp above 149 is recommended and watch for the break out above 157, if it breaks then add more shares and wait for the target of 172-188, It may achieve till the end of the next month  
Supports and Resistance (Monthly) 
  • Resistance 1- 157 Supports 1- 130 
  • Resistance 2- 172 Supports 2- 118 
  • Resistance 3- 192 Supports 3- 107