Welspun Corp shares jumped nearly 6% after global brokerage Jefferies initiated coverage of the stock with a Buy rating and set a target price of Rs 3,250, implying an upside of about 27%.

The brokerage's bullish stance is anchored in its view that a multi-year upcycle in energy infrastructure spending is underway in the United States and Saudi Arabia, which it expects will benefit pipe makers such as Welspun Corp. Welspun Corp, part of the Welspun Group, is one of India's largest manufacturers of large-diameter pipes used in oil and gas transmission, making it a direct beneficiary when pipeline and energy transmission projects pick up in these markets.

Jefferies highlighted several supporting factors for its positive assessment, including Welspun Corp's ongoing capacity expansion, a strong order book, and the company's growing overseas operations. A healthy order book provides revenue visibility for pipe makers, since large pipeline contracts are typically executed over multiple quarters or years.

The report's key areas of focus include:

• US energy infrastructure upcycle
• Saudi Arabia expansion and India opportunity
• Growth projections
• Order book and balance sheet
• Key risks

The mention of key risks indicates Jefferies also flagged factors that could weigh on the investment case, though the specifics were not detailed in the report.

Source: Economic Times Markets