The WPIL Q3 numbers have disappointed the markets, perhaps due to a decline in profitability. On closer look, this is largely due to lesser other income, something that should be ignored, even when it is high to get a better view of the picture. The other reason for declining profits is the sharp increase in employee remuneration. The mgt mentioned that the environment is pretty robust it is gearing up for bigger volumes for which there has been fresh hiring, not only in India, but also overseas. There is always a lag time before volumes start coming in.
The mgt expects a good Q4, which is always the biggest, volume wise. The current year 23-24 is more of a consolidation year after a 50% growth in Sales last year 22-23. This is only to be expected though there should still be nominal growth. I expect the coming year starting in about a month & a half from now see the Co. graduate to the next level.
The stock has corrected sharply & to my mind is already attractively valued. The pendulum we know swings rather wildly to both extremes of optimism & pessimism n it is up to us investors to benefit from this!!
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