Rs 166.1 crore order book: Multibagger iron & steel company signed a Power Purchase Agreement (PPA) with Bhargavi Renewable Private Limited
The stock has delivered multibagger returns of 175 per cent in 2 years and a whopping 1,100 per cent in a decade.
On Thursday, shares of Welspun Specialty Solutions Limited (WSSL) plunged 1.92 per cent to Rs 47.40 per share from its previous closing of Rs 48.33 with an intraday high of Rs 49 and an intraday low of Rs 46.55. The stock’s 52-week high is Rs 52.50 and its 52-week low is Rs 30.68.
Welspun Specialty Solutions Limited has entered into a 25-year Power Purchase Agreement with Bhargavi Renewable Private Limited, a related party, on July 31, 2024, to procure renewable solar power at competitive market rates from its 15.5 MWp capacity unit. This agreement marks a significant stride in reducing the company's carbon footprint and fortifying its ESG initiatives.
Earlier, the company secured a contract valued at Rs 117.17 crore (including GST) to supply seamless stainless steel boiler tubes for National Thermal Power Corporation's (NTPC) Talcher 2x660 MW supercritical thermal power project. Emerging as the preferred bidder (L1) through a competitive process conducted by the project's main contractor, Bharat Heavy Electricals Ltd (BHEL), WSSL will complete the project by December 2024. This contract was awarded through standard business procedures, operating on an arm's length basis and without involvement from affiliated parties.
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Welspun Specialty Solutions Ltd is engaged in the business of manufacturing alloy, stainless steel & its products such as seamless tubes & rolled products and hence the entire turnover is from alloy and SS steel & its products. As of March 31, 2024, the company order book stands at 4,111 MT valued at Rs 166.1 crore.
The company has a market cap of over Rs 2,500 crore and has delivered good profit growth of 26.9 per cent CAGR over the last 5 years. According to the Quarterly Results, the net sales increased by 10 per cent to Rs 151.27 crore and net profit skyrocketed by 397 per cent to Rs 40.03 crore in Q4FY24 compared to Q4FY23. In FY24, the net sales skyrocketed by 67 per cent to Rs 696.97 crore compared to FY23. The company reported a net profit of Rs 62.47 crore in FY24 compared to a net loss of Rs 13.74 crore in FY23, an increase of 555 per cent.
As of March 2024, an ace investor, Dilip Kumar Lakhi owns a 23.04 per cent stake in the company. The stock has delivered multibagger returns of 175 per cent in 2 years and a whopping 1,100 per cent in a decade. Investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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