Mukul Agarwal’s multibagger stock poised for growth; Opportunity Space of Rs 1.5 lakh Crores!

The company's order book stands at a robust Rs. 3,750 crores, exceeding expectations.

WPIL Limited's revenues remained steady during the most recent quarter, and its profit margins improved as well. Project revenue growth was hampered this quarter by supply chain issues, but overall operational improvements are expected to boost revenue in the second half of the year, according to company management. The company's product line is doing well across a number of categories in both domestic and foreign markets. Globally, the company has experienced increased profit margins, especially with the expansion of WPIL South Africa and Gruppo Aturia's aftermarket operations. The defense industry saw a major turning point when the company won the Indian Navy's framework contract for stationary onboard centrifugal pumps. Rutschi's divestment is still on schedule, with completion anticipated by the end of 2023.

The company's order book stands at a robust Rs. 3,750 crores, exceeding expectations. Despite facing supply chain challenges in the past, the company has demonstrated its ability to overcome these obstacles. With the construction season now in full swing, the company is well-positioned to capitalize on this favorable period. The order book comprises approximately Rs. 300 crores in products and Rs. 3,450 crores in projects. The O&M segment contributes Rs. 600 crores, while the EPC contractual book stands at Rs. 2,800 crores. With an opportunity space of Rs. 1 lakh to Rs. 1.5 lakh crores, order booking is not seen as a significant challenge for the company.

In the second quarter, the company's operating revenues fell to Rs. 348 crores, a year-over-year decline of about 14 per cent. Nonetheless, EBITDA increased to Rs. 71 crores, up 44 per cent year over year, and EBITDA margins increased to 20.37 per cent. PAT margins for this period were 12.32 per cent, and the quarterly net profit was Rs. 43 crores.

The Company's operating revenues on a half-yearly basis were Rs. 706 crores, a constant amount from year to year. At Rs. 137 crores, the EBITDA showed a 38 per cent year-over-year increase. EBITDA margins increased significantly as well, reaching 19.44 per cent. With PAT margins of 11.8 per cent, the net profit of Rs. 83 crores represented a 47 per cent year-over-year increase.

The stock is currently trading at Rs 3,089 with a high promotor holding of 70 per cent. Ace investor Mukul Agarwal has a 1.16 per cent shareholding in this company. The stock price has shown a remarkable performance across all timeframes; in one year, it gained 150 per cent returns, while in the longer timeframe of 5 years, it generated 262 per cent returns. Over its lifetime, it has accumulated investor interest and delivered multibagger returns of over 14000 per cent which is outstanding.

About Company

WPIL is engaged in the entire value chain of Pumps & Pumping Systems from concept to commissioning and execution of water supply projects on a turnkey basis for industrial units, power utilities, irrigation departments, etc.

Disclaimer: The article is for informational purposes only and not investment advice.

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