WPIL has sold its step down subsidiary Rutschi for 68.7m euros, which is about 625 crs. It clearly means that its international operations need to be taken more seriously. The mgt., led by Mr. Prakash Agarwal needs to be complemented for their global aspirations, & more importantly succeeding in their endeavours, when for most Indian Co.’s, their global aspirations have proved to be their achilles heel! WPIL, which has been steadily getting re-rated over the past year, still has a long way to go when compared to its more illustrious peers with not necessarily better return ratios/ growth.
Perhaps the mgt. has done the smart thing by selling out, focusing on its core business & not spreading themselves too thin. Purely from an investor’s stand point, it will be more beneficial if the Co. can grow its Indian operations more meaningfully, given the predictable growth in the Indian economy. The mgt. though may continue with their global aspirations given their past record of successfully integrating their overseas operations. Whichever way the story unfolds, the steady re-rating of the Co. ought to continue, given its growth prospects & its execution capabilities.
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