Rs 14,500 Crore Order Book: This Water and Road Infrastructure Focused Small-Cap Company Secured Contract Worth Rs 328.12 Crore From BMC
With a PE ratio of 21.1, the company trades at a premium compared to the industry PE of 20.1. The company has ROCE of 18.4 per cent and ROE of 12.61 per cent.
Welspun Enterprises Limited, through its subsidiary Welspun Michigan Engineers Limited (WMEL), has secured a significant contract from the Brihanmumbai Municipal Corporation (BMC) for upgrading the Haji Ali Storm Water Pumping Station in Mumbai. The contract, valued at Rs. 328.12 crore, includes comprehensive mechanical, electrical, instrumentation, and automation works, along with civil repairs. The project is scheduled for completion within 18 months, excluding monsoon periods, and includes a 15-year operations and maintenance phase. This contract follows a recent order for the Mogra Storm Water Pumping Station, highlighting WMEL's growing expertise in urban infrastructure development. The addition of this project increases WMEL's outstanding order book to approximately Rs. 2,915.42 crore.
Mr. Sandeep Garg, Managing Director of Welspun Enterprises, stated, 'This contract marks a significant milestone for our material subsidiary, Welspun Michigan Engineers Limited. We remain committed to executing this project responsibly and efficiently, ensuring it delivers lasting benefits to Mumbai.' This achievement underscores WMEL's commitment to sustainable water management solutions and its continued growth in the infrastructure sector.
Welspun Enterprises Limited (WEL), part of the USD 2.7 billion Welspun Group, is a prominent player in the infrastructure sector, focusing on road, water, and wastewater projects. The company operates with an asset-light model, leveraging partnerships for construction while concentrating on high-value project management. This approach allows WEL to maintain flexibility across multiple geographies with minimal investment in plant and equipment. As of February 2025, WEL's order book stands at Rs 14,500 crore, with a significant portion dedicated to water EPC projects. The company has a pan-India presence and is actively involved in various projects, including a 70:30 joint venture for rural water supply in Varanasi, Ayodhya, and Meerut. Additionally, WEL is invested in the oil and gas sector through a joint venture with Adani Welspun Exploration Limited, holding a 35% stake. The company aims to selectively bid for high-value projects while focusing on opportunities in the roads and water/wastewater sectors.
As of March 26, 2025, the current stock price of Welspun Enterprises Limited is Rs 517. The 52-Week High is Rs 652, and the 52-Week Low is Rs 301.9. Welspun Enterprises Limited has a market capitalisation of Rs 7,186 crore. The stock has delivered a 1-year return of 66.17 per cent and an impressive 3-year return of 555.35 per cent. The Price-Earnings (PE) Ratio stands at 20.1. Major public shareholders include Dilipkumar Lakhi with 3.50 per cent, Chirag Dilipkumar Lakhi with 2.13 per cent and Sandeep Garg with 1.88 per cent.
In the Quarterly Results of December 2024, the company reported a revenue of Rs 866.87 crore, reflecting a YoY growth of 22.66 per cent compared to Rs 706.71 crore in December 2023. The operating profit stood at Rs 128.18 crore, marking a 1.94 per cent increase from Rs 125.74 crore in the same quarter last year. However, the profit after tax (PAT) declined by 0.08 per cent to Rs 71.49 crore from Rs 71.55 crore in December 2023.
In FY24, the company posted a revenue of Rs 2,872.28 crore, registering a 4.14 per cent growth compared to Rs 2,758.19 crore in FY23. The net profit for the year stood at Rs 295.09 crore, down 59.17 per cent from Rs 722.76 crore in the previous financial year.
With a PE ratio of 21.1, the company trades at a premium compared to the industry PE of 20.1. The company has ROCE of 18.4 per cent and ROE of 12.61 per cent.
Investors must keep this Small-Cap stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.