The Third Eye : Welspun Gujarat S R Ltd.

Welspun Gujarat Stahl Rohren Ltd. has attracted lot of Investor attention. The company supplies high grade Submerged Arc Welded pipes to the companies in Oil and Gas sector. Welspun-Gujarat reported a 19.86 per cent rise in net profit to Rs 18.1 crore for the quarter ended September 30, 2005 as compared to last year.
The promoters have hiked their holdings in the company from 30 % to 39 %. The FII’s have also hiked their holding in the company from 30% to 38%.

The oil and gas sector is expected to witness laying of pipelines on a large scale and welspun will be a beneficiary on this account. The company has recently secured an order worth Rs. 5000 million from Indonesia and another worth Rs, 3000 million from Algeria. Welspun Gujarat has recently raised $75 million through FCCB to finance its expansion plan.

On the Trading patterns the stock has shown consistent strenght in last few sessions.
The stock is currently trading at Rs. 97