Rs 3794 crore order book: This multibagger small-cap stock bags new order from Ministry of Defense, watch out!

Rs 3794 crore order book: This multibagger small-cap stock bags new order from Ministry of Defense, watch out!

Karan Dsij

Over the past year, the stock has delivered impressive returns, surging by an impressive 117 per cent.

Established in 1952 by Johnston Pump Company Inc., USA, WPIL is a distinguished manufacturer and distributor of various pump types, spare parts, and accessories. Additionally, the company specializes in the seamless execution of turnkey water supply projects, catering to industrial units, power utilities, and irrigation departments, among others.

With operational manufacturing units strategically located in Kolkata, Uttar Pradesh's Ghaziabad, and two units in Maharashtra, WPIL has made significant strides in the global market since 2011. It has achieved this by strategically acquiring pump companies across different regions worldwide.

WPIL boasts a market capitalization of Rs 2,858 crore, firmly positioning it as a Small-Cap stock. In the latest trading session, the stock exhibited impressive performance, concluding with a notable 0.84 per cent increase, reaching Rs 2,926. Furthermore, the company recently secured a substantial contract worth Rs 14.3 crore from the Ministry of Defense (Navy) for the supply of a comprehensive range of centrifugal pumps and related spare parts.

This pivotal contract for onboard centrifugal pumps signifies a significant milestone for WPIL, enhancing its product portfolio tailored to the evolving needs of the Indian Navy, currently engaged in a substantial fleet expansion initiative. Centrifugal pumps are vital fluid transfer devices that leverage the kinetic energy of a rotating impeller to facilitate fluid movement across various applications. Within the Navy, these pumps play a critical role in functions such as fluid transfer, firefighting, cooling, stability management, and more, ensuring the operational efficiency and safety of naval vessels during their sea deployments.

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Over the past year, WPIL has delivered impressive returns, surging by an impressive 117 per cent. The stock currently trades at a price-to-earnings (PE) ratio of 14.5x, coupled with a robust return on equity (ROE) of 26.2 per cent. This combination of strong financial indicators and recent contract wins positions WPIL as a compelling investment opportunity in the market.

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

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