In this article, we will discuss the WPIL share price target for 2024 to 2035, fundamentals, future plans, and challenges depending on the various reports from research and brokerage firms and research analysts.
Quarter 2 Results
WPIL Limited has announced its financial ratios reflect the company’s Q2 FY 2024 results, which are as follows:
- Total sales reported Rs 490 crore in Q2 FY24 as against Rs 319 crore in Q2 FY23, increased with 54.01% YoY and 35.41% QoQ.
- Net profit increased to Rs 102 crore in Q2 FY24 as against Rs 34.53 crore in Q2 FY23, increasing with 74.44% YoY and 55.63% QoQ.
- Operating profit is reported at Rs 104 in Q2 FY24, increased by 56.55% YoY and 73.16% QoQ.
- Earnings per share (EPS) are reported at 57.56.
- The number of shareholders increased by 107% YoY and 67.97% QoQ from 14,197 to 23,846.
| Sep’24 (Cr) | YoY Change | QoQ Change | |
|---|---|---|---|
| Sales | 490 | 54.01% | 35.41% |
| Operating Profit | 104 | 56.55% | 73.16% |
| Net Profit | 60.23 | 74.44% | 55.63% |
These numbers indicate that despite having good revenues, WPIL needs to work harder to achieve better profit margin improvements.
Industry Overview
The water management industry in India is poised for significant growth due to various factors:
- Government Initiatives: high government investment in water infrastructure development will help boost the demand for water management.
- Urbanization: This process has increased the need to develop the infrastructure for faster delivery of water for domestic uses and management of wastewater.
- Sustainability Focus: The current trend shows that firms are under pressure to embrace environmentally friendly methods for water usage, hence increasing research on sustainable practices for water management.
- Rising Industrial Demand: Several sectors like chemistries, oil & gas, and energy sectors are the ones that contribute towards elaborate programs for water utilization, and this is due to the fact that there are set laws on environmental standards to observe.
Competitive Landscape
WPIL competes in a very influential market with a few crucial players, such as Kirloskar Brothers Ltd., KSB Pumps Ltd., and Grundfos. Nevertheless, WPIL has an apparent competitive advantage because it specializes in turnkey projects and advanced pumps.
Company Overview
WPIL Limited came into existence in 1952 and has confirmed its position as a leading company in the water & wastewater management industry. The firm acts as a pump manufacturer for different types of pumps and also offers fully integrated solutions in many sectors, which include water, agriculture, and water treatment industries, for instance.
Product Portfolio
Pumps: Different types of pumps are used across various pump classes.
Turnkey Projects: Integrated packages covering design, supply, installation, and commissioning of water systems.
Water Treatment Solutions: Technologies that help provide customers with high-quality water for industrial and municipal purposes.
Service & Maintenance: Any follow-on services to help the systems that were installed run efficiently at all times.
Financials of WPIL Limited
As of October 2024, here are some key financial metrics that highlight WPIL’s performance:
Market capitalization: Rs 5,861 crore
Current Share Price: Rs 600
52-Week High/Low: Rs 298/Rs 648
P/E Ratio: approximately 11.56
Dividend Yield: 0.67%
Return on Equity (ROE): 1.66%
Debt-to-Equity Ratio: 0.30 reflects a low index of debtor sales, suggesting that individuals and companies have low levels of outstanding debt on balance sheets.
WPIL share price target for next 10 years
| Year | Minimum share price | Maximum share price |
|---|---|---|
| 2024 | 280 | 710 |
| 2025 | 485 | 1,020 |
| 2026 | 688 | 1,255 |
| 2027 | 850 | 1,464 |
| 2028 | 1,010 | 1,695 |
| 2029 | 1,455 | 2,020 |
| 2030 | 1,830 | 2,840 |
| 2031 | 2,266 | 3,575 |
| 2032 | 2,865 | 4,440 |
| 2033 | 3,582 | 5,200 |
| 2034 | 4,105 | 5,830 |
| 2035 | 4,683 | 6,585 |
WPIL share price target for 2025
WPIL share price target for 2025Â is in bullish trend according to research analysts and brokerage firms, it may touch highest share price target Rs 1,020 and lowest price target Rs 485 in FY 2025. Based on current data, the share price target of WPIL in 2025 is positive, and the stock has potential to grow. This should be a good investment for long-term investors.
WPIL share price target for 2030
The share price of WPIL is expected to witness a bullish trend in the year 2030, with the maximum share price Rs 6,585 and the minimum share price Rs 4,683 in 2030. Based on current data, the share price target of WPIL in 2030 is positive, and the stock has potential to grow. This should be a good investment for long-term investors.
WPIL share price target for 2035
WPIL share price target for 2035 is expected to witness a bullish trend according to research analysts and brokerage firms, it may touch highest share price target Rs 3,050 and lowest price target Rs 1,530 in FY 2035. Based on current data, the share price target of WPIL in 2035 is positive, and the stock has potential to grow. This should be a good investment for long-term investors.
Strengths of WPIL Limited
- Established Market Presence: WPIL is a company based in 1949 and specialized in the manufacturing of automotive equipment; the company has over seven decades of experience in the sector.
- Diverse Product Range: If one will notice, the company has a broader product offering, which makes it easier for it to address different industries.
- Strong Order Book: An order book with good health is a certainty, which gives visibility of the future sales revenue and certainly helps in the long run.
- Low Debt Levels: WPIL’s debt-to-equity ratio stands at 0.18, indicating that the management of the firm has kept itself firmly away from leveraging the capital structure too aggressively.
- Focus on Innovation: WPIL is able to fund its research and development activities so that they are capable of meeting the ever-changing technological trends.
Weaknesses of WPIL Limited
- High P/E Ratio: With a P/E ratio of nearly 93, investors may consider this an expensive stock relative to its earnings prospects.
- Dependence on Government Contracts: Government-related work means that a large proportion of sales are derived from contracts with the government, and hence inconsistent government policies may affect sales.
- Working Capital Intensive Operations: This is mainly due to lengthy business project cycles; the business model entails a significant amount of working capital.
- Profitability Susceptible to Raw Material Prices: Variations in the cost of raw materials also affect the profit margin more as compared to other costs.
- Limited Global Presence: Despite this, WPIL is not as internationally active as some of its counterparts and competitors.
Future Plans of WPIL Limited
WPIL has outlined several strategic initiatives aimed at driving future growth:
- Expansion into New Markets: Venture into other countries may help in the diversification of sources of income and thereby help companies cut their reliance on the local market.
- Investment in Technology Upgrades: Recruitment of highly skilled personnel will enhance production by improving the existing technological systems.
- Sustainability Initiatives: Stressing the environmental management systems can fit current global tendencies in sustainability and can be beneficial to increase the brand image.
- Diversification of Product Offerings: Hence, there is evidence that extending the product offering portfolio to more sophisticated water treatment technologies can address new market needs.
- Strengthening Service Capabilities: After-sales service is an area that needs a significant boost in expenditures since increasing the efficiency of after-sales service can, in a way, improve satisfaction and loyalty and, on the other hand, unlock a chance for consistent and steady income.
Conclusion
WPIL Limited is a rather promising candidate for investment because of the company’s background, its product range, and its consolidated performance figures revealing possible success in the long term. Nevertheless, these strengths should be balanced against threats such as high valuations and the reliance on government business to reach new clients during the evaluation of investment risks.
According to WPIL’s current growth and expansion strategies, along with a healthy track record, the company can be considered for those who want investment forecasts in the water management industry.
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Disclaimer: I am not a SEBI-registered investment adviser or research analyst. The information shared is only for educational purposes. This is not an investment advice.
FAQs
Should I invest in WPIL Limited now?
Indeed, it has exhibited good historical performance, financial leverage, and great returns; however, potential investors need to steer clear of its relatively high P/E ratio and heavy reliance on government business.
Is WPIL Limited a multi-bagger?
It has provided excellent return rates over the long term; however, to repeat such an effort in the future remains subject to market factors and specific business plans.
Who is the owner of WPIL Limited?
WPIL Limited operates as a public limited company, so the ownership is not concentrated within a single owner/family/individual but spread out across several institutions.
Is WPIL Limited debt-free?
No, while it has low amounts of debt, it is not entirely debt-free, although the company is cautious when it comes to leverage, having a DE ratio of about 0.30.
What classes of products are produced by WPIL Limited?
The complete profile of WPIL includes that it offers end-suction pumps, submersible motors, and vertical mill pumps together with integrated water solutions for agriculture, municipal water supply & treatment, industries, and wastewater treatment plants.