Walchandnagar Industries | Return of a Golden Era

@Rahil_Dasani

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.

9 Likes

They raised some money and this would help the working capital - further boosting profitability. Shares pledges are common and not a red flag IMO.

1 Like

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!!!

5 Likes

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

17 Likes

Walchandnagar Industries Ltd

The chart have approached a major resistance which it was not able to break for quite some time.

Weekly

Monthly

5 Likes

New Mgmt. interview https://www.dailymotion.com/video/x8tboa6

3 Likes

Key components have been manufactured by Walchandnagar Industries Limited.

7 Likes

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.

3 Likes

Allotment info

1 Like

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.

5 Likes

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.

3 Likes