The stock of the water management stock surged by 6% following its acquisition of a 100% stake in an Italy-based pumping solutions firm
Water management stock – During Wednesday’s trading session, WPIL Limited, a leader in Pumps & Pumping Systems, experienced a 6 percent increase in their stock price following the acquisition of a 100% stake in the prominent Italian pumping solutions firm, MISA.
With a market capitalization of Rs. 7,028.39 crores on Wednesday, WPIL Limited’s shares were trading at Rs. 755, up by 5.8 percent from the previous day’s closing price of Rs. 719.60 per share, reaching a high of Rs. 768 per share.
WPIL Limited, known for providing innovative solutions for the water, irrigation, and drainage sectors, acquired MISA through its subsidiary Gruppo Aturia. MISA is recognized for its expertise in large pumping station projects and the supply of pumps and hydro turbines. This acquisition strengthens Gruppo Aturia’s position as a major European supplier of large pumps and enhances its ability to offer turnkey solutions for pumping station projects. With a rich history dating back to 1901, MISA has a strong presence in Europe and North Africa.
Prakash Agarwal, WPIL’s Managing Director, expressed excitement about the acquisition, emphasizing its potential to enhance the company’s offerings in water, irrigation, and drainage across Europe and the MENA region. The transaction was completed in cash, with the exact amount undisclosed.
WPIL Limited is a globally recognized company specializing in engineering solutions, focusing on the design, manufacturing, and supply of high-performance pumps and pumping systems. The company is dedicated to providing comprehensive solutions for various sectors, including water supply, irrigation, drainage, sewage, and industrial applications.
WPIL is renowned for its exceptional offerings of large-scale pumping systems, hydro turbines, and integrated solutions for pumping stations. Committed to sustainability and utilizing cutting-edge technologies, WPIL caters to the evolving needs of customers across Europe, Asia, Africa, and beyond. The company’s Consolidated Orderbook stands at approximately Rs. 36,650 million.
In the second quarter of FY25, WPIL experienced significant growth in domestic revenues. The Product Division saw revenue increase to Rs. 83 crores from Rs. 60 crores in FY24, while the Projects Division’s revenue rose to Rs. 431 crores from Rs. 260 crores in FY24. The Product division’s outlook is promising, driven by portfolio expansion and a strong market presence.
In terms of shareholding, the promoters own a substantial 70.80 percent stake in WPIL Limited. Mutual Funds hold 2.43 percent, Alternative Investment Funds (AIF) have 0.18 percent, and Foreign Portfolio Investors (FPI) possess 5.68 percent. The remaining 20.91 percent is held by the public.
WPIL’s financial performance has been impressive, with revenue increasing by 160 percent from Rs. 191.52 crore to Rs. 499.42 crore in Q2FY24-25. Net profit also saw a significant rise from Rs. 23.43 crores to Rs. 60.23 crore during the same period.
Key financial ratios for WPIL Limited include a Return on Equity (RoE) of 1.66 percent and a Return on Capital Employed (RoCE) of 20.1 percent. Additionally, the company maintains a debt-to-equity ratio of 0.3.
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