Welspun Corp came into focus beacuse of steel pipe contract

Welspun Corp Limited came into focus after its Saudi-listed associate, East Pipes Integrated Company for Industry, secured a steel-pipe contract worth SAR 771 million, approximately ₹2,000 crore including VAT, from Saudi Aramco. The contract is scheduled for execution over six months. The important point is that this is an order secured by East Pipes, not directly by Welspun Corp. Welspun Corp has an associate-company relationship with East Pipes, so the economic impact on Welspun will depend on the associate's profitability and Welspun's share of that contribution. The timing is also relevant. Welspun Corp has recently been seeing strong investor attention following large international pipe orders. Its US operations had secured a $1.8 billion order, around ₹17,200 crore, shortly before this Saudi development. The six-month execution period makes the next two quarters important. I would track production volumes, utilisation, margins and the contribution from East Pipes in Welspun Corp's consolidated financials. New international orders would provide additional confirmation that demand remains strong across the pipe business. From a technical perspective, Welspun Corp touched a fresh high of ₹2,797.60 during September 21 trading before giving back part of the gain. ([Upstox - Online Stock and Share Trading][3]) The ₹2,800 area is therefore an immediate psychological resistance. Sustained trading above this level with volume would indicate continued buying interest. A failure to hold the breakout zone after the fresh-high attempt would indicate profit booking. Call: Track the ₹2,800 zone, East Pipes' execution and Welspun Corp's consolidated contribution from the associate. Disclosure: I have no holding or position in Welspun Corp Limited at the time of writing.