WPIL Ltd – Global Water Pumps

WPIL ‘s Q3 numbers were nothing short of spectacular & the stock is up 35% in two days! Not without reason! Sales have more than doubled & have crossed 500 crs, with operating margins coming in at about 21%.

The Media release attached below, that came along with the results made for very interesting reading as it gave some insights into the nature / scope of work of its subsidiaries across the globe. With the Co. now opening up & engaging with its investors / shareholders by giving a quarterly media release & appointing Valorem Advisors, for its Investor relations, it will not be long before the investing community appreciates how under valued it is, despite the recent run up. Even if the market cap were to double from here (currently 1,580 crs), given its high operating margins, given that it is an Indian multi national with its various subsidiaries across the globe, being as profitable if not more than its domestic operations, the Co would still be comparable to its domestic peers in terms of its valuation.

The table below (taken from Screener.in) would throw more light on the valuation vis a vis its peers.

Peer comparison

Sector: Capital Goods-Non Electrical Equipment Industry: Pumps

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