Dilipkumar Lakhi-Backed Infra Company Secures Rs 1,989.40 Crore Order from Brihanmumbai Municipal Corporation – Order Book Reaches Rs 15,800 Crore!
The company’s shares have delivered an impressive return of over 320 per cent in the past 2 years.
This Small-Cap infrastructure company, engaged in the development of road, water, and wastewater projects, has received a Letter of Acceptance from the Brihanmumbai Municipal Corporation for a project with a total contract value of Rs 1,989.40 crores (excluding GST).
As of June 30, 2024, Welspun Enterprises Ltd had an outstanding order book of Rs 12,300 crores on a standalone basis. With the addition of this new order, the outstanding order book is approximately Rs 14,300 crores (less execution done in Q2 FY25).
This includes about Rs 9,900 crore from the water sector (including around Rs 4,400 crore from O&M and asset replacement), Rs 1,989 crore from the newly added tunnel segment, and approximately Rs 2,400 crore from the transportation sector (excluding Rs 1,900 crore for a road project bid, where the company is L1).
Additionally, on October 7, 2024, Welspun Michigan Engineers Limited, a subsidiary of Welspun Enterprises Ltd, was awarded a project valued at approximately Rs 24.60 crores for wastewater treatment in the State of Maharashtra. With these new order inflows, the consolidated order book now stands at approximately Rs 15,800 crores (less execution done in Q2 FY25).
Today, the company’s shares rallied around 3 per cent and finally closed at around at Rs 553.55 and the current market capitalization stands at Rs 7,661 crore. Additionally, the shares have delivered an impressive multibagger return of over 100 per cent in the past 1 year only.
As per the Quarterly Results, in the Q1 FY25, Welspun Enterprises Ltd recorded a revenue of Rs 907 crore compared to Rs 699 crore. It reported an operating profit of Rs 140 crore. The net profit stood at Rs 110 crore compared to Rs 93 crore. Looking at the annual performance, the company generated a revenue of Rs 2872 crore in FY24 compared to Rs 2758 crore. The operating profit for FY24 was Rs 425 crore with a net profit of Rs 319 crore compared to a profit of Rs 726 crore in FY23.
Welspun Enterprises Ltd formerly known as Welspun Projects Ltd., is a member of the USD 2.7 billion Welspun Group. The company operates in the infrastructure sector, with investments in oil and gas. The company is an infrastructure development firm focusing on the road, water, and wastewater segments. Additionally, it has investments in oil and gas exploration.
Ace investor Dilipkumar Lakhi holds a 3.93 per cent stake in the company.
Disclaimer: The article is for informational purposes only and not investment advice.