walchandnagar industries

Walchandnagar Industries-Engineering Excellence
CMP Rs 610

Shares in issue: 3 mn
Market Cap: Rs 201 crore
Currrent Revenues: Rs 258 crore
Order Book : Rs 500 crore
Promoters Holding: 47.4 per cent
Reliance Capital TC: 4.99 per cent
LIC: 7.03 per cent
Oriental Insurance: 2.46 per cent
The Rs 258 crore Walchandnagar Industries is one of those entities which should find adequate reflection into any portfolio that wishes to have an exposure to the growing demand for engineering products. Walchandnagar Industries (WIL), offers that one stop entry point into a diverse selection of industries that range from Space, Sugar to Power.

Financials
For the year ended September 2005, WIL reported Revenues of Rs 258 crore, with after tax profits of Rs 7.7 crore. For the Q1 to December 2005, WIL has reported Revenues of Rs 55 crore, with after tax profits of Rs 1.35 crore. On FY O5 EPS of Rs 25.7, the stock fetches a PE of 26. This is not a cheap stock by any standards, but the stock holds out the promise of accelerating the rate of earnings growth during FY06, as the business gets scaled. What is most important that WIL is focusing on all the growth sectors of the Economy at present.
Space Odyssey
October 15, 1994", as the World looked on in awe. India's D-2 Polar Satellite Launch Vehicle lifted its head and soared higher & higher piercing the skies, till it was out of sight of the millions of jubilant eyes. A promise fulfilled. Another step taken by the Nation in pursuit of technical excellence.
WIL once again received accolades from ISRO and VSSC for having successfully contributed in another colossal effort. WIL had manufactured and supplied first stage booster motor castings along with nozzles for a rocket which demanded highest degree of precision and accuracy.
Large Infrastructure
This was not the first time that WIL had proved its technical competence, gained over the years through unrelenting efforts and an enviable manufacturing infrastructure; an infrastructure that boasts of having an area of 32,680 sq.meters under crane, facilitating manufacture of any critical pressure vessel/heat exchanger of thickness up to 125 mm weighing almost 125 tonnes.
Quality being the prime objective, WIL has kept pace with the latest developments in the field and has been updating the quality control facilities over the years. This ensures that the highest standards of quality such as ISO,ISI,ASME,ASTM and DIN are met effectively. To make the systems foolproof periodic quality audits are conducted. Various jobs being manufactured at WIL have to pass through the stringent inspection criteria of agencies like LLOYDS,Bureau-Veritas, Linde-Consortium, EIL and PDIL.
ISO 9001 Certifications
With elaborate quality and systems and procedures established over for years, WIL has acquired the ISO 9001 accreditation from LLoyds Register of Quality Assurance(LRQA).
WIL's technological excellence is supplemented through various collaborations with internationally renowned companies for Sugar machinery, Industrial Boilers, Gears and Centrifuges.
In addition to successfully absorbing this international technology, WIL on its own also developed highly sophisticated engineering capability to meet the growing needs of modern customers - Auto-Setting Mill, patented World-wide was the result of such hi-tech capability. And its recent tie-up with ONODA ENGINEERING CO.JAPAN for up-to-date technical know-how to manufacture Cement Machinery gives WIL an edge as the newer opportunities emerge. WIL is ready to grab them.
Looking Overseas
Having carved a niche and established itself as a supplier of quality engineering products in the domestic market, it was but natural that WIL made forays in the international market. It operates with full confidence in the challenging arena of global competition. The successful execution of turnkey Sugar Projects in Uganda, Malaysia, Tanzania and Cement Projects in Indonesia and Nepal speaks volumes of the engineering excellence achieved over the years.
Outlook
In pursuit of higher and higher targets, WIL has ambitious plans for lateral as well as vertical expansion. Its 258 Crore turnover is likely to grow manifold in the next five years- thanks largely to an established base of committed customers and ambitious plans to enter diverse areas like Horticulture, Financial Services Sector, Sugar Production, Construction.
WIL maintains a self-contained township at Walchandnagar, 135 Kms South-East of Pune, a metropolitan set-up with all the modern urban facilities makes it a unique Industrial Township which is free from pollution and traffic jams.
Striving relentlessly to uphold the tradition of Engineering Excellence set by the founder Seth Walchand Hirachand, WIL is poised to take on greater challenges. The future, indeed,holds promise .....the period of growth has now begun

buy during dips......arnd 500 or below will be a good oppurtunity