Rs 12,650 crore order book: This multibagger civil construction company bags new order worth Rs 4,123.88 crore from Brihanmumbai Municipal Corporation
The stock gave multibagger returns of 170 per cent returns in just 1 year whereas BSE Sensex Index is up by 25 per cent.
Welspun Enterprises Limited (WEL), the infrastructure and energy arm of Welspun World, has secured a significant contract to design, build and operate a 2,000 MLD (million litres per day) water treatment plant (WTP) at Bhandup Complex in Mumbai, from the Brihanmumbai Municipal Corporation (BMC).
The contract, valued at Rs 4,123.88 crore, encompasses the design, construction, and operations & maintenance of the plant. The value includes an operations and maintenance (O&M) component of Rs 1,880.44 crore. The design‐build project is slated to be completed within a timeframe of 48 months, following which WEL will undertake O&M responsibilities for 15 years.
The proposed water treatment plant, one of the largest in the world in terms of capacity, is located at BMC’s Bhandup Complex, which currently supplies drinking water to Mumbai City through existing Water Treatment Plants. WEL has partnered with Veolia, one of the world’s largest technology companies specializing in the water sector, as its technology provider for the upcoming plant. WEL aims to leverage advanced treatment processes and technologies, in line with its commitment to maximizing resource utilization and developing sustainable infrastructure solutions.
Over the last few years, WEL has made rapid strides and expanded its foothold in the water sector in India. The company is currently executing some prestigious projects including the rural water supply project under the Government of India’s Jal Jeevan Mission in Uttar Pradesh covering around 2,500 villages and the 418 MLD Wastewater Treatment Facility (WwTF) project at Dharavi, Mumbai. In August 2023, WEL acquired Michigan Engineers Pvt. Ltd. (now renamed to Welspun Michigan Engineers Limited) to expand in the urban water infrastructure and tunnelling solutions segment.
Welspun Enterprises Limited (WEL), formerly known as Welspun Projects Ltd., is a part of the USD 3 billion Welspun Group. The company operates in the infrastructure space with investments in oil & gas. In the infrastructure space, WEL is focused on the road and water sectors. While the company’s main focus is on Hybrid Annuity Model (HAM) projects as a developer, it also takes up value accretive projects in the BOT-Toll and EPC space.
Today, shares of WEL surged 0.94 per cent to Rs 332.10 per share with an intraday high of Rs 338.30 and an intraday low of Rs 316.70. The stock’s 52-week high of Rs 382.70 while its 52-week low is Rs 121.10.
The stock gave multibagger returns of 170 per cent returns in just 1 year whereas BSE Sensex Index is up by 25 per cent. Investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
DSIJ’s 'Multibagger Pick’ service recommends well researched multibagger stocks with High Returns potential. If this interests you, do download the service details here.