Rs 3,740 crore order book and 16,000 per cent returns: This multibagger received order worth Rs 425.35 from Government, locked in 5 per cent upper circuit!

The Stock has delivered multibagger returns of 204 per cent in just one year and 16,000 per cent of gains in a decade.

In a significant development, WPIL Limited has secured a substantial order from the Public Health Engineering Department (PHED), Government of West Bengal, for the comprehensive execution of a Turnkey Project. Notably, this lucrative contract does not fall under the category of related party transactions, marking it as a notable achievement for WPIL Limited in the water supply infrastructure sector.

This project, designated as Package I of the Surface-based Water Supply Scheme in the Northern Sector under Purulia District, comes with an impressive aggregate value of Rs 425.35 crore. The ambitious endeavour is slated to be completed within a tight timeframe of 27 months, followed by an additional 3 years for Operation and Maintenance.

As on September 30, 2023, company with a robust domestic order book for H1FY24 stood at Rs 3,739.4 crore and international order book for the same period is at Rs 827.5 crore and a continued focus on initiatives like the Jal Jeevan Mission and AMRUT 2, WPIL aims to further expand its footprint and solidify its position as a global leader in the water handling sector.

WPIL, a leading water handling solutions provider, operates through three core business divisions: Turnkey Solutions, specializing in comprehensive water project solutions; Engineered/Large Pumps, producing metallic and concrete volute pumps for irrigation and drainage; and Conventional Water Pumps, offering a range including vertical turbine, horizontal split case, and submersible pumps. The company's product offerings cover various pump types, including turbine, mixed flow, axial flow, large volute pumps, and submersible pumps.

In FY23, WPIL's segment revenue distribution comprised 51 per cent from Pumps and Accessories and 49 per cent from Project (Works Contract). Geographically, the company generated approximately 55 per cent of its revenue within India and 45 per cent outside India.

WPIL boasts a global presence with manufacturing units in India and subsidiaries or joint ventures in South Africa, Zambia, Australia, Singapore, Italy, France, Thailand, Switzerland, and the UAE.

The company has strategically pursued backward integration, acquiring an Alloy and Stainless-Steel Castings Foundry unit in Nagpur in FY23.

This is a Mid-Cap, fundamentally strong company with a market capitalization of Rs 3,334 crore, currently trading at Rs 3,414. The stock price-to-earnings ratio is 16x, whereas the industry price-to-earnings ratio stood at 30.9x, making this stock more attractive as an undervalued company. The company has delivered good profit growth of 40.6 per cent CAGR over the last 5 years and has a dividend yield of 0.57 per cent. On Thursday, in anticipation of an order receipt, the stock price was locked in the 5 per cent upper circuit. The stock has delivered multibagger returns of 204 per cent in just one year and 16,000 per cent of gains in a decade.

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