Many issues with the company:
Capex vs ROCE:
ROCE of the company has decreased even without significant capex
Depreciation Effect:
Company is depreciating a lower percentage of assets. This is contributing to an increase in Net Profit
Pledge:
Promoters have pledged a significant portion of their holding
Contingent Liabilities:
Company has significant contigent liabilities which can be risky
Share price:
Share price has decreased over last 10 years more due to earnings
Working Capital:
Company has significant working capital which is dragging its ROCE and ROE
Debt:
Company have issues servicing its debt
Your thoughts please @Rahil_Dasani
what you have described is why this is a turnaround, there are these issues thats why you are getting it at the price you see it.
please try to understand what is changing.
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They raised some money and this would help the working capital - further boosting profitability. Shares pledges are common and not a red flag IMO.
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INDIA GOVT: 100% FOREIGN DIRECT INVESTMENT ALLOWED IN SPACE SECTOR UNDER AMENDED POLICY
Looks like all things are aligning beautifully for Walchandnagar as strong tailwinds coming in its end markets (nuclear energy and space).
Exciting times ahead. All depends on management execution now to take advantage of this big opportunity!!!
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I have been again and again speaking on the capabilities of WIL.
Supply of Medical Oxygen Plant was done during covid, these are also used in the Tejas jet. So tech they already have, do they qualify for the jet, possible.
Developed prototypes and tech demonstrators for land systems
- Missile launchers for agni program was developed initially by WIL.
Pressure testing facilities for the boosters of the gaganyaan program, developed for the first time by WIL
Only indian manufacturer of propulsion drive system for submarines
- this lead to and will lead to import substitution
got qualified in 10 different missile programs
- asthra
- rudram
- vlm sam
was selected by DRDO as its industry partner for developing launchers, both trailer and wagon mounted.
Containerized Launcher System for the strategic submarine programme has been successfully developed through reverse engineering.
- this again led to import substitution.
only competent Indian firm to undertake aggregation and installation of the Main Power Plant onboard strategic submarines. Having successfully completed two such installations
has developed the expertise to manufacture air borne launchers mounted on aircrafts. The first of the series of air borne launchers has been delivered.
nominated by IHQ Ministry of Defence (Air) to indigenize critical components of Mi-17 series helicopters.
Equipment manufactured by WIL, have been successfully used in the launching of ‘ROHINI’, ‘SROSS’, ‘IRS’, ‘G-SAT’ and other satellites.
has been identified as a prospective supplier of nuclear equipment by foreign firms. In this regard Atomstroyexport, Atomenergomash of Russia, AREVA now EDF, France, Westinghouse, GE have already evaluated and approved capabilities of WIL for localization of their equipment.
most of the prods they use for space, comes free issue from the govt
- the customer sees some capability and promise to provide this kind of service to its supplier
Now they seem to be moving deeper into the value chain, want to enter newer products which they werent doing before
- Composites- necessary in aerospace engineering because of their high specific strength at lower weight, stiffness, and corrosion resistance.
for almost all the segments this firm has done a tech tie up with international firms
- MAAG Gears with whom they had Technical Collaboration for gearboxes
- has worked jointly with DCNS France for manufacture and supply of Raft Mounted Gearboxes for Anti Submarine Warfare Corvettes.
- collaborated with Winters Instruments, Canada to sell a premium range of precision instruments
invested and biased
19 Likes
Walchandnagar Industries Ltd
The chart have approached a major resistance which it was not able to break for quite some time.
Weekly
Monthly
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New Mgmt. interview https://www.dailymotion.com/video/x8tboa6
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Key components have been manufactured by Walchandnagar Industries Limited.
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With a proud legacy of 50 years of association with ISRO, WIL is poised to make substantial investments in capacity expansion, aiming to increase flight hardware production rates exponentially from FY 24-25 onwards.
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Allotment info
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Indian Oil in talks with Nuclear Power Corporation of India to build small nuclear reactors. (Bloomberg)
Recent past has provided ample opportunity to accumulate.
Not expecting earth shattering numbers in Q4 - but, expecting some positive news and positive commentary.
It’s a long term play.
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ISpA Welcomes Walchandnagar Industries Limited as a Platinum Sponsor for the Indian DefSpace Symposium 2024.
The 2nd Edition of the Indian DefSpace Symposium will take place on 18-20 April 2024 at Manekshaw Centre, New Delhi, India.
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Their annual report is bereft of domain/product information, hardly talks about their core business areas, except for the last page. There is very limited information available online.
Can you please share the resources you used for research?
I have bookmarked some resources like their website, youtube interviews etc. Anything apart from this would be very helpful.
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What prompted you to say time has come? They have not done a concall + commentary since 2019? Could you please elaborate?
here you go!
Still think this will set the ball rolling?
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The result is not that bad at all. Without the very large one time income skewing the numbers , it’s the first quarter in many years when they have lost less than a rupee per share .
While this result may not attract new investors because they are still not in black, there are many things to please existing ones .
- Reduced interest cost by 2 crores or so and cash balance 55 crores in hand suggesting further debt reduction possible.
- Point no. 7 in small saying substantial portion of assets fully depreciated.
Disc. Invested around these levels recently
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Walchandnagar’s core competence is in Nuclear and Submarine division. These are very tech intensive fields. As of today india’s nuclear capacity is around 7500MW. The target for 2031 is 22480MW.
Coming to technical charts, stock is looking forward for 16year breakout. what is the difference in this attempt compared to previous ones?? this time stock has consolidated at the breakout range for last 5-6 months along tailwinds in the sectors. Company is yet to produce results where everyone can believe in. I personally feel its a game for next 5 years. If we get a monthly closing above 280-290 , we are set for good returns.
Stock might not show great results in the coming quarters , but you would see small improvements every quarter.
It would be great if company resumes concalls or start to release more info in media release.
I am invested and quite biased. you need to build your own conviction to see this decadal opportunity, like how @Moonrise sees this
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The stock has well cross All multiyear resistance this morning and is trading at 347.64.
However, all seemingly never ending rallies have a cliff. Where do you see the cliff is?
we need to this month closing. There will be intermediate cliffs but it shall keep going higher. Lets also connect quarterly results