Rs 14,500 Crore Order Book: This Infrastructure Small-cap Company Secures New Contract Worth Rs 79.29 Crore in Gujarat's Urban Development Sector
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 Vadodara Municipal Corporation for the rehabilitation of an existing drainage line in Vadodara, Gujarat. The contract, valued at Rs. 79.29 crore, marks a strategic entry into a new market for WMEL, enhancing its order book to Rs. 2,994.71 crore. The project, which involves the use of trenchless technology, is scheduled for completion within 12 months starting April 02, 2025, excluding monsoon periods. This development underscores WMEL's commitment to sustainable urban infrastructure development, minimizing environmental impact and societal costs.
Mr. Sandeep Garg, Managing Director of Welspun Enterprises, highlighted the project's significance, stating, "This project marks a significant milestone for our material subsidiary, Welspun Michigan Engineers Limited as it strategically marks their entry into a new market." The contract not only strengthens WMEL's position in the urban infrastructure sector but also aligns with its growth strategy to expand into new geographies.
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As of February 2025, WEL's order book stands at Rs 14,500 crore, with a significant portion dedicated to water EPC projects.
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.