This industrial product company delivered over 200% returns in a year; do you hold it?

An investment of Rs 1 lakh in the shares of this company 1 year ago would have turned to Rs 3 lakh today. 

WPIL Ltd, an S&P BSE SmallCap company, has delivered multibagger returns to its shareholders in the last one year. During this period, the company’s share price jumped from Rs 914 on 11 April 2022 to Rs 2,750 on 12 April 2023, an increase of 200% in the one-year holding period.

Recent performance highlights 

In the recent quarter Q3FY23, on a consolidated basis, the company’s net profit increased by 465.34% YoY to Rs 83.72 crore. The company’s net revenue increased by 105.69% YoY to Rs 507.17 from Rs 246.57 crore. 

The company is currently trading at a PE of 16.2X against the industry PE of 25.1x. In FY22, the company delivered an ROE and ROCE of 16.5% and 20.3%, respectively. The company is a constituent of Group B stocks and commands a market capitalization of Rs 2,705 crore.  

Company Profile 

WPIL, founded in 1952 by Johnston Pump Company Inc., USA, is involved in the complete value chain of Pumps & Pumping Systems, from idea to completion and implementation of turnkey water supply projects for industrial units, power utilities, irrigation departments, and so on. Customers include irrigation departments from states like Telangana and Madhya Pradesh, as well as national utilities, huge PSUs, and private sector enterprises. Prakash Agarwal purchased a majority position in the firm from the B. M. Khaitan group in 2002. 

Growth Drivers     

WPIL has a long history of producing specialized water pumps for various commercial end markets, starting as Johnston Pumps India and dominating the industry with its vertical pump range. After its acquisition by Worthington, it developed a strong range of horizontal pumps for all industrial applications, primarily in steel and water supply. 

Share price movements 

Today, the share of WPIL Ltd opened at Rs 2,710.70 and has touched a high and low of Rs 2,790 and Rs 2,697, respectively. So far 14,517 shares have been traded on the bourses.  

At the time of writing, the shares of WPIL Ltd were trading at Rs 2,716.95, an increase of 1.39% from the previous day’s closing price of Rs 2,679.60 on BSE. The stock has a 52-week high and low of Rs 2,790 and Rs 863.25 respectively on BSE.