Rs 580 Crore Order Book & Ashish Kacholia Holds 2.60 Per Cent: Engineering Company Reports Net Loss for Second Straight Year
The stock is up by 50 per cent from its 52-week low of Rs 142.95 per share and has given multibagger returns of over 300 per cent in 3 years.
Walchandnagar Industries Limited, a renowned engineering company known for its design, engineering & high complex precision manufacturing capabilities with the operational legacy of more than 115 years, announces disappointing results.
According to Quarterly Results, the company reported net sales of Rs 53 crore in Q4FY25 compared to net sales of Rs 91 crore in Q4FY24 while it reported a net loss of Rs 56 crore in Q4FY25 compared to a net loss of Rs 4 crore in Q4FY24. In its annual results, the company reported net sales of Rs 259 crore in FY25 compared to net sales of Rs 302 crore in FY24 while it reported a net loss of Rs 86 crore in FY25 compared to a net loss of Rs 46 crore in FY24.
In a strategic move to bolster future growth and long-term value, the Company is realigning its portfolio to focus on Defence, Nuclear, and Aerospace as key pillars. This strategic pivot comes amidst a cyclical slowdown in the Foundry business, which impacted revenues due to a downturn in machine tools and automotive sectors, compounded by a lockout at the Satara plant. Despite these challenges, the Company has undertaken a significant one-time provision of ₹ 43.62 Crores for loss-making legacy (TNEB) projects, setting a clear path for sustainable growth moving forward.
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The Company's robust order book stands at Rs 580 Crores as of March 31, 2025, with a healthy potential order pipeline of approximately ₹ 1000 Crores. This strong outlook is further reinforced by a recent Rs 30.75 crore order from Vikram Sarabhai Space Centre (VSSC) in March 2025 for S139 segment hardware, solidifying WIL's leadership in India's burgeoning space program. With the government's heightened focus on early procurements in Defence, Nuclear, and Aerospace sectors identified as India's "DNA" due to their strategic national importance and deep technological capabilities, the Company anticipates securing major order wins in FY26 and beyond. This emphasis on indigenous platforms, energy independence, and expanding space ambitions presents a significant opportunity for the Company to contribute to and benefit from India's journey towards becoming a global superpower in these critical sectors.
Walchandnagar Industries Ltd is a heavy engineering and project execution company and has diversified business offerings across core sectors with a focus on EPC / turnkey projects, Hi-Tech manufacturing, engineering products and engineering services. The company is a Small-Cap with a market cap of Rs 1,093.18 crore.
As of March 2025, two ace investors, Ashish Kacholia, own a 2.60 per cent stake in the company. The stock is up by 50 per cent from its 52-week low of Rs 142.95 per share and has given multibagger returns of over 300 per cent in 3 years.
Disclaimer: The article is for informational purposes only and not investment advice
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