Welspun Corp Ltd Gains 13.18%: 5 Key Factors Driving the Week’s Momentum

2 February 2026: Valuation Shift Enhances Price Attractiveness Amid Sector Challenges

Welspun Corp Ltd began the week on a positive note, with its share price rising 3.02% to ₹751.00, even as the Sensex declined 1.03%. This move followed an announcement highlighting a shift in the company’s valuation parameters from very attractive to attractive, signalling improved price appeal despite ongoing challenges in the iron and steel sector.

The company’s price-to-earnings ratio stood at 12.46, considerably lower than several peers, while its EV/EBITDA ratio of 8.90 suggested a discount relative to operational cash flow generation. Robust returns on capital employed (19.91%) and equity (21.64%) further underpinned the valuation improvement. However, a downgrade in the Mojo Grade to Sell in December 2025 indicated caution amid sector headwinds and earnings uncertainties.

3 February 2026: Intraday High and Gap Up Reflect Strong Market Sentiment

On 3 February, Welspun Corp Ltd demonstrated pronounced strength, surging 7.74% to close at ₹809.10 after opening with a significant 8.75% gap up. The stock reached an intraday high of ₹816.70, outperforming both the Steel/Sponge Iron/Pig Iron sector’s 2.12% gain and the Sensex’s 2.63% rise.

This marked the third consecutive day of gains, accumulating an impressive 10.98% return over this period. The stock’s price remained above its 5-day, 20-day, and 50-day moving averages, signalling positive short- to medium-term momentum, although resistance remained at longer-term averages. The high beta of 1.09 reflected the stock’s elevated volatility, consistent with the sharp price movements observed.

4 February 2026: Technical Momentum Shifts Amid Mixed Market Signals

Welspun Corp Ltd continued its upward trajectory on 4 February, gaining 0.81% to close at ₹815.65. The stock traded within a wide range of ₹783.75 to ₹819.00, reflecting robust buying interest. Despite this, technical indicators presented a mixed picture.

The weekly MACD remained bearish, while the monthly MACD improved to mildly bearish, suggesting easing selling pressure. The RSI showed no definitive signal, indicating a neutral momentum stance. Daily moving averages shifted to mildly bearish alignment, and Bollinger Bands pointed to sideways to mildly bearish trends. Other oscillators such as KST and Dow Theory echoed this cautious tone, while on-balance volume lacked clear directional confirmation.

Long-term returns remained impressive, with three-, five-, and ten-year gains vastly outperforming the Sensex. However, the current Mojo Grade remained at Sell, reflecting ongoing challenges. Investors were advised to monitor key resistance levels near ₹820-₹830 for signs of a sustained trend reversal.

5 February 2026: Upgrade to Hold as Financial and Valuation Metrics Shift

On 5 February, Welspun Corp Ltd’s rating was upgraded from Sell to Hold by MarketsMOJO, reflecting a more balanced outlook amid flat quarterly results and improved valuation. The stock closed at ₹838.50, up 2.80% for the day, reaching an intraday high of ₹818.95.

The upgrade was supported by a strong ROCE of 25.26% for the half-year and record quarterly net sales of ₹4,532.48 crores. However, profitability metrics showed softness, with PAT declining 32.9% and PBT excluding other income falling 20.22%. Valuation remained attractive with a PE ratio of 13.84 and EV/EBITDA of 9.87, below many peers.

Technical indicators improved slightly to mildly bearish, with stabilising price action and neutral RSI readings. Institutional ownership at 31.99% added confidence, while the company’s long-term returns continued to outpace benchmarks significantly. The rating upgrade reflected cautious optimism amid mixed signals.

6 February 2026: Week Closes Slightly Lower Amid Consolidation

The week concluded on 6 February with Welspun Corp Ltd’s share price retreating 1.61% to ₹825.00 on relatively low volume. The Sensex gained a marginal 0.10% that day, closing at 36,730.20. This minor pullback followed a strong rally earlier in the week and may reflect short-term profit-taking or consolidation near recent highs.

Despite the slight decline, the stock’s weekly gain of 13.18% far outpaced the Sensex’s 1.51% rise, underscoring Welspun Corp’s relative strength. The company remains positioned above key short- and medium-term moving averages, with technical indicators suggesting a cautious but constructive outlook.

Key Takeaways

Welspun Corp Ltd’s 13.18% weekly gain significantly outperformed the Sensex’s 1.51% rise, driven by a combination of improved valuation, strong intraday price action, and a rating upgrade. The company’s attractive price-to-earnings and EV/EBITDA ratios relative to peers underpin its valuation appeal.

Technical momentum showed signs of stabilisation, with the stock trading above key short- and medium-term moving averages despite mixed signals from MACD, RSI, and other oscillators. The upgrade to Hold by MarketsMOJO reflects a cautious but more optimistic stance amid flat quarterly results and sector headwinds.

Long-term returns remain robust, with multi-year gains vastly exceeding benchmark indices, highlighting Welspun Corp’s resilience and growth potential. However, recent softness in profitability metrics and a modest dividend yield suggest investors should maintain a balanced view.

Overall, the stock’s strong weekly performance amid a challenging sector environment indicates renewed investor interest, but ongoing monitoring of technical levels and earnings trends is advisable.

Conclusion

Welspun Corp Ltd’s performance during the week of 2 to 6 February 2026 was marked by significant price appreciation and positive shifts in valuation and technical outlook. The stock’s ability to outperform the broader market and sector peers amid mixed financial signals demonstrates its underlying strength and market resilience.

The upgrade to a Hold rating by MarketsMOJO, combined with attractive valuation metrics and strong long-term returns, provides a foundation for cautious optimism. Nonetheless, the presence of mixed technical indicators and recent earnings softness advises prudence.

Investors should continue to watch for confirmation of sustained momentum through technical breakouts and improved profitability in upcoming quarters. Welspun Corp Ltd remains a noteworthy stock within the iron and steel products sector, balancing value appeal with measured risk considerations.

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