Some members reached out to me in DM on WPIL and Shakti Pumps.
“Seems new govt will focus on rural recovery… So, why have you sold wpil, was just curious to know…
Also Shakti Pumps going to benefit from solar focus and rural recovery but valuations are high…
Please share your rationale…”
My response: I like WPIL and it’s promoter. No problem as such in holding it. I exited WPIL because there were better opportunities like Shakti pumps where I thought returns would be quicker and more. I entered into Shakti pumps around 2100 level and added more up to 2600 level. Regarding your question on shakti pumps overvaluation, I don’t think it is overvalued although it has ran up a lot. If you look at last quarter, they did 90 cr in PAT. If you annualise it, they are still available at a PE of less than 20. I estimate them to post 750 cr revenue this qtr and for them to beat last qtr numbers. Screener PE might seem high but forward PE isn’t in my judgement.
Above response is just on the valuations of Shakti pumps but there is a lot more on Shakti pumps that I would want to pen down and share with other members. I will try to do that later today.
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