Walchandnagar Industries | Return of a Golden Era

Walchandnagar Industries Ltd.(WIL) , established in 1908 is a Heavy Engineering Company with a presence in Strategic Sectors like Defence, Nuclear & Aerospace and Industrial Products like Gears, Centrifugals, Castings and Gauges. Certified for ISO 9001:2015, WIL also has a presence in Oil & Gas, Railways and in EPC sectors through its offerings for Sugar Plants, Co – Generation Boilers and Cement Plants.

Walchandnagar Industries Limited (WIL) is an ISO 9001: 2015 certified Indian company with global presence and diversified business portfolio in Projects, Products and High-tech Manufacturing. Carrying a legacy of more than 100 years of Engineering Excellence, WIL has established its name as one of the best in its operational areas. WIL is known for pioneering achievements in Indian engineering industry and for its contribution to nation building activities. WIL is a listed company on the BSE and NSE stock exchanges in India.

WIL has a strong engineering, project management and manufacturing infrastructure to undertake projects and supply of machinery and equipments, in the fields of Nuclear Power, Aerospace, Missile, Defence, Oil & Gas, Steam generation plants, Independent power projects, Turnkey Cement and Sugar plants. WIL has a large proven reference list of satisfied customers across the world.

First to Manufacture

* *Critical components for Nuclear Reactor*
* *Main propulsion gear boxes for Indian built Navy Frigates*
* *Components for Satellite launch vehicle for ISRO*
* *Critical components for 235 MW & 500 MW Nuclear Power project*
* *One of the largest Optical Telescope in Asia*
* *Critical components for India’s first Moon mission **“CHANDRAYAAN-I”***
* *Major critical components for India’s Intercontinental ballistic missile (ICBM) program **“Agni V”.***
* *Critical components for India’s first Mars mission **”MANGALYAAN”.***

First ever

  • Indigenously built Sugar project
  • Company to export Sugar machinery and complete Turnkey project from India
  • Export of complete Cement plant with largest ever Kiln manufactured by any Indian company
  • Independent Power project based on municipal solid waste in India.


Compliance to Various Codes

  • Fabrication of components complying to various codes of conformance such as A.S.M.E, Sec.VIII Div.I & II, A.S.M.E. Sec. III NB, NC, & ND, A.S.M.E. Sec.III NF, I.B.R. Act 1948, ISO, DIN, Customer Codes etc
  • Welding procedures and welders are qualified under the various third party inspection surveillances such as I.B.R., N.P.C.I.L, V.S.S.C, E.I.L, L.R.I.S, A.B.S., SSQAG, P.D.I.L, Bax Council, T.E.I.L, B.V., DNV, D.R.DL, Holtec , etc.


  • Aerospace
  • Cement Plant Machinery
  • Defence
  • Foundry
  • Gear Boxes
  • Instrumentation
  • Centrifugal Machines
  • Nuclear Power
  • CoGeneration Power Plants
  • Missiles
  • Sugar Plant Machinery
  • Walchandnagar Technology Group (WTG)


Walchand Technology Group (WTG) is Technology & Engineering Solutions Group of Walchandnagar Industries Limited (WIL) powered by a dynamic and dedicated team of qualified and trained engineering professionals, with a judicious mix of domain and discipline experts. WTG has harnessed in-house knowledge and ability garnered from over 100 years of engineering achievements and experience, to provide a complete range of consulting engineering services in the following sectors

A. Energy – Nuclear, Thermal Plants

B. Oil and Gas – Eg. Distillation Column for Oil India

C. Defence – Submarines & Ships

D. Design Engineering and Execution of Complex Projects – Eg. Sodium Coolant System for 500 MW FBR at Kalpakkam Bhavini

E. Special Purpose machine and R & D Projects

Availability of Software and hardware tools at WTG and access to expert panels of agencies and consultants with specific domain expertise in nuclear, electrical engineering, as well as controls and instrumentation give a distinct advantage.

Prominent Clients list include Nuclear Power Corporation of India limited (NPCIL), BHAVINI, BARC, IGCAR.

Stock Price History

Walchandnagar has been a premium company in critical area manufacturing for aerospace & nuclear sectors. The company has gone through a very tough time but is now looking at a full swing turnaround, backed my massive sectoral tailwinds.

What do I like?

Company founded by a freedom fighter. Has tremendous strength the aerospace, defence, missile, and nuclear sectors.

These are very high-tech areas were only specialised players with the manufacturing capabilities, technical know-how, and historical quality delivery strength, can survive.

It is not easy for a new company to setup & establish itself as a credible supplier of these components, that too for the government, ISRO, NPCIL, etc.

Our Government is pushing on every business area that Walchandnagar Ind is involved in. There is and will continue to be growing demand for products that they manufacture.

Company is undergoing debt restructuring. In the process, they have raised preferential from a few astute & marquee investors - 233CR

  • Ajay Upadhyaya made an entry in June 2023 quarter, currently holds 1.63%
  • Ashish Kacholia 17.5lac shares 2.59%
  • Jagdish Master - 4.3lac shares 0.65%
    *Some are via warrants at Rs 114/share - I believe 33.33% paid, 66.67% to be paid

Funds to be used for

  1. Purchase of large assets to enhance defence, nuclear, and aerospace programs. gearbox business
  2. Reduce debt on books.
  3. General working capital

Q3FY24 Results - poor, and expected. There was a strike which caused some loss, and they are still in the turnaround process.

Management is bullish, confident, and hungry to turnaround the entire business.

“This is truly an opportunity for Walchandnagar to rebuild its brand & legacy, to what it was two decades ago. Next ten years will define Walchandnagar, the engineering & aerospace, defence business, as we stand for it. I think we are very ambitions, very hungry, as a management team. This inflow of capital, and faith, that people have put in us, needs to be repaid in the next 5-10 years. We are very bullish about all that we do, and we are very hungry, that’s they key.” ~ Chirag Doshi, MD

Yesterday’s Press Release

Recent interview Video

My View

The worst is behind them.

I see honesty, patriotism, and hunger, in Chirag Doshi. These 3 values, when mixed with nation building initiatives by the government, and when the business has an edge due to the highly specialised & technical nature of the product mix (barrier to entry), the resulting recipe is one for imminent success.

Invested, position built slowly across the last several months.

*Disclaimer: I invest on management depth, market leadership, sector growth & demand. My holding periods are long, and I’m alright with drawdowns, as long as corporate & business hygiene is intact. NOT an expert, just a dreamer


I do remember their restructuring of loan around 65/share around March or May 23 last year, I think.
Even though, the company works around the hot themes of current market, Defence. aerospace and Nuclear. I could not find any details regarding their products, Example whether their products are for one time capex driven or they have any annually recurring in nature? Further, Valuations are always debatable, especially with loss making companies, it’s hard to decide, can you share your thoughts on this.

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They produce highly specialised products that are used on either side of the line, from underwater submarine gears to components for missiles & our space program. Diverse, highly technical, and need of the decade as declared by the Government.

Regarding valuations - very difficult at this stage, considering the past & many moving parts yet to settle down.

Aside from reasons mentioned in my original post, my gut tells me:

Walchandnagar is a race horse. The horse was the pride of India, once upon a time. The sector dipped, the horse got lazy, sick, and unhealthy. It’s been unhealthy for a very long time.

Now, there’s a resurgence in the sector. And with that, there’s demand for the race horse. However, the horse needs to regain it’s health, so there’s work ongoing to fix its ailments (debt restructuring), to give it better nutrition (preferential with ‘several’ astute long-term investors), and to bring it back to being the pride of the nation (patriotic & nation building capex driving needs for their products).

Can the horse get any more sick that it already has been? Unlikely.

Can the horse regain its health and become the prime race horse that it once was? All the efforts are in that direction, time will tell.

I like turnarounds, especially these kinds. I liked hearing Chirag Doshi speak, I found honesty & pride in his voice. I’m invested.

If you study numbers, you won’t find any joy (study them post Q1FY25). If you study the brand, and the story that can unfold, you will find a lot of joy. Would I like to be part of this rebuilding journey? Heck yeah!

Is the right approach to adopt for investing decisions? Absolutely not. I may be completely wrong in my decision and everything can go south. I am highly unconventional and unorthodox in my approach.

I’m NOT an expert, just a dreamer.


Are Walchandnagar Industries and Walchand Peoplefirst Ltd part of the same business house?

Thanks for creating this thread.

I believe the company is at the cusp of huge turnaround. It has very advanced and high technology capabilities in nuclear energy and space end markets (both of which are going through huge tailwinds).

With 240crs funds from marquee investors (Ashish Kacholia, Madhu Kela etc) it will be able to fund capex, working capital and repay debt.

If marquee investors have put 240crs in a 550crs marketcap it shows the kind of confidence they have in future potential of the company.

Sometimes i wonder after looking at their niche capabilities, how come this company is only available at 850crs marketcap!!!


Poor results

Revenue down 23% and loss widens.


I am NOT sure about super capabilities being discussed here. Engineering capabilities has two parts
Engineers(Knowledge base) and manufacturing (physical capabilities)

Both are questionable. Engineers wouldn’t be sitting around for decades in a non-performing company. Plants- At best they would be average by modern standard as company was not in a a position to invest.


@fundoo yes, exactly.

Although, I don’t think your statement of Madhu Kela having invented is true. At least, I did not uncover that during my research.

If it is true, even better, but can you share some reference to validate that? @fundoo

Basis my work only known names are Ajay Upadhyay, Mukul Agarwal, and J Master.

The same engineers and facility produced products that enabled Chandrayaan to lift off. @nav_1996

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Which product? Is it something critical.

They have been a listed supplier for defence and space sector due to legacy. They have that advantage.

Such one-off projects don’t have much impact on biz unless there is recurring biz.

Another question we need to ask ourselves. Why have they not grown. Their revenue is 1/3rd of what was 10 years ago.

My take is that most of their revenue comes from plat and machinery and they have not been competitive.

Notes from caprize investment managers:

Funds raising Plan is to invest 100cr over the next 18m for capex with possible asset turn of 10x. The company aims to achieve a turnover of Rs. 1,500 crores to Rs. 2,000 crores per annum in the next five years, with EBITDA margins of 20% to 22%. FY23 rev stood at 322cr.

What does the company do?
Manufactures hardware for launch vehicles (SSLV, PSLV, GSLV); equipment for nuclear reactors; marine gearboxes for naval frigates, corvettes, submarines, missile hardware/launchers, etc

Key Segments
Aerospace: Solid Propellant Motors, Nozzle End Segments, and Strap-On Motors
Missiles: Motor-casings for tactical and strategic missiles
Defence: Mobile Missile Launchers, Mobile Bridges, Containers and Launchers
Nuclear: Heat Exchangers, Calandria, End Shields, and Shield Tanks
Industrial products: Gearboxes, Castings, Centrifugal Machines and Crushing & Grinding Equipment

With the massive Make-In-India push along with rising intensity of public-pvt partnership in defense, we believe the company could be on the verge of a MEGA turnaround with major push coming from ISRO/Aerospace and the Defence/Missile program.

What to monitor?
Order Book – 822cr as of last qtr, 1500cr of offers in the pipeline. Potential: 3x with ISRO OB, 2x with Missiles, 3x with NPCIL
Debt reduction – Current total debt 478cr (LT 261cr)

But how does one evaluate a company with highly checkered past, limited/narrow public information/understanding.

While the past performance has been abysmal (300cr+ cumulative losses), Definitely a watchlist candidate for the next 4-6 quarters!


Pref funds allotte list include Ashish Kacholia, Tushar Bohra (i think he is associated with MK Ventures)

Things were not good in recent past thats why this is a turnaround investment opportunity.

If management execution was good this would have been a 10-15kcrs marketcap company instead of 800crs marketcap

The bet here is on potential turnaround in next 2-4 quarters driven by renewed management focus, hug fund raise and industry tailwinds.

Poor Q3 results were already known to the market because of labour strike which lead to 30crs revenue loss and profitsbility. Please read press release in detail.

We can’t keep on discussing what happened in the past as its irrelevant to the investment thesis.

What needs to be discussed is what kind if numbers the company can post.

Also, if you are not convinced that the turnaround is possible then please skip this. There are many other opportunities available in the market!!!


He is the co-founder at MK ventures, along with Madhu Kela. Although, it appears he has invested in his personal capacity, not as MK ventures, and Madhu Kela isn’t in. Which is fine.

The preferential was at around 114/share right?

Ajay Upadhyay has gotten in earlier, I believe around 50-70ish.

Tushar Bohra co-founded MK Ventures with Mr. Madhusudan Kela. Siddharth Shah & Sumit Bhalotia are the fund managers in MK ventures. All are invested in their personal capacities.


Do watch.


Any “turnaround” opportunity merits discussion of the past to understand the scope of the turnaround. What is it turning around from? What went wrong? Why do we think it will do better? Is it because of change in management or tailwinds or fresh capital or some product revamp or something else? Discussing the past of a company in a turnaround investment thesis is essential for gaining insights, learning from past mistakes and setting realistic expectations.

How did you arrive at the “10-15kcrs marketcap” number?

If management execution was not good, then how can we expect them to do better? Will fresh capital and tailwinds make the management better? Or, do they need a new management?

For example,how did the management handle the labor strikes? Despite crores of funding and industry tailwinds, will the company will keep making losses if the labor strikes continue? What is the management doing to prevent future labour strikes?

Of course, the future potential needs to be discussed. An all encompassing discussion must involve everything in the company including its past failure, current tailwinds, future potential, etc.

All counter arguments are equally, if not more, important than positive reinforcements. I would be glad to know every opinion or idea on the hypothesis – both the positives and the negatives.


excuse me for interrupting.
what went wrong is that they have several segments, previously they were heavily into govt project EPCs, there were 2 projects in particular which had issues from the client side (WIL did their part), which led to funding issues, as these clients didnt pay.
to sustain their operations they needed funds, debt was already fully utilised according to the bank limits, so they went to KKR.
post that covid hit, and what was in the dump, got more deeper in the dump

funding is the key, this industry is pretty capital intensive. they have the knowhow, the tech and the certifications/brand in their space, all they need are funds to support wc.
they have also gotten out of the govt epc space, and will focus only on pvt entities.
now regarding the tailwinds, i am sure you can read them everywhere.
my thought is i see several entities using these keywords like space, aero, defence, but here we have an entity who truly does it.

you need to understand these are temporary things, yes its a bad show from the side of the mgmt, but we as investors cannot have the answer to everything, if we did then WIL wont be at the valuations it is today

fy25 needs to be better, one needs to closely track execution, thats the key to it all.


Am I missing something. Isn’t space, aero and defence govt sector mainly and not pvt.

that line is mentioned for the EPC part of the biz
you need to study WIL to understand it better and create your own conviction (if any).

maybe if i have misinterpreted what you are saying, just msg me personally

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Great sign.

Dream on.