BSE:505872

Stock Analysis Report

Executive Summary

WPIL Limited, through its subsidiaries, engages in designing, developing, manufacturing, erecting, commissioning, and servicing pumps and pumping systems in India.

Rewards

Trading at 77.6% below its fair value

Earnings are forecast to grow 32.01% per year

Pays a high and reliable dividend of 2.94%

Risk Analysis

Debt is not well covered by operating cash flow

Highly volatile share price over past 3 months

Profit margins (5.1%) are lower than last year (9.7%)

Does not have a meaningful market cap (₹2B)



Snowflake Analysis

Very undervalued with high growth potential and pays a dividend.

Share Price & News

How has WPIL's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 505872's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.8%

505872

-5.4%

IN Machinery

-2.9%

IN Market


1 Year Return

-69.4%

505872

-39.6%

IN Machinery

-29.3%

IN Market

Return vs Industry: 505872 underperformed the Indian Machinery industry which returned -39.6% over the past year.

Return vs Market: 505872 underperformed the Indian Market which returned -29.2% over the past year.


Shareholder returns

505872IndustryMarket
7 Day-1.8%-5.4%-2.9%
30 Day-53.3%-30.3%-26.5%
90 Day-59.5%-30.2%-28.5%
1 Year-69.1%-69.4%-38.5%-39.6%-27.9%-29.3%
3 Year-44.0%-45.2%-35.2%-37.9%-15.4%-20.0%
5 Year-54.8%-56.1%-22.3%-27.0%-3.3%-8.3%

Price Volatility Vs. Market

How volatile is WPIL's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is WPIL undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 505872 (₹254.8) is trading below our estimate of fair value (₹1136.09)

Significantly Below Fair Value: 505872 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 505872 is good value based on its PE Ratio (5.4x) compared to the Machinery industry average (10.1x).

PE vs Market: 505872 is good value based on its PE Ratio (5.4x) compared to the Indian market (9.2x).


Price to Earnings Growth Ratio

PEG Ratio: 505872 is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: 505872 is good value based on its PB Ratio (0.6x) compared to the IN Machinery industry average (0.8x).


Next Steps

Future Growth

How is WPIL forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

32.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 505872's forecast earnings growth (32% per year) is above the savings rate (6.5%).

Earnings vs Market: 505872's earnings (32% per year) are forecast to grow faster than the Indian market (19.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 505872's revenue (14.2% per year) is forecast to grow faster than the Indian market (9.1% per year).

High Growth Revenue: 505872's revenue (14.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 505872's Return on Equity is forecast to be high in 3 years time (20%)


Next Steps

Past Performance

How has WPIL performed over the past 5 years?

36.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 505872 has high quality earnings.

Growing Profit Margin: 505872's current net profit margins (5.1%) are lower than last year (9.7%).


Past Earnings Growth Analysis

Earnings Trend: 505872's earnings have grown significantly by 36% per year over the past 5 years.

Accelerating Growth: 505872's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 505872 had negative earnings growth (-56.1%) over the past year, making it difficult to compare to the Machinery industry average (-6.2%).


Return on Equity

High ROE: 505872's Return on Equity (9.3%) is considered low.


Next Steps

Financial Health

How is WPIL's financial position?


Financial Position Analysis

Short Term Liabilities: 505872's short term assets (₹7.4B) exceed its short term liabilities (₹6.1B).

Long Term Liabilities: 505872's short term assets (₹7.4B) exceed its long term liabilities (₹1.7B).


Debt to Equity History and Analysis

Debt Level: 505872's debt to equity ratio (57.3%) is considered high.

Reducing Debt: 505872's debt to equity ratio has increased from 49.7% to 57.3% over the past 5 years.

Debt Coverage: 505872's debt is not well covered by operating cash flow (19.6%).

Interest Coverage: 505872's interest payments on its debt are well covered by EBIT (5.6x coverage).


Balance Sheet

Inventory Level: 505872 has a high level of physical assets or inventory.

Debt Coverage by Assets: 505872's debt is covered by short term assets (assets are 2.9x debt).


Next Steps

Dividend

What is WPIL's current dividend yield, its reliability and sustainability?

2.94%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 505872's dividend (2.94%) is higher than the bottom 25% of dividend payers in the Indian market (0.95%).

High Dividend: 505872's dividend (2.94%) is low compared to the top 25% of dividend payers in the Indian market (4.18%).


Stability and Growth of Payments

Stable Dividend: 505872's dividends per share have been stable in the past 10 years.

Growing Dividend: 505872's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (16%), 505872's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 505872's dividends in 3 years are forecast to be thoroughly covered by earnings (5.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.0yrs

Average board tenure


CEO

Prakash Agarwal (48yo)

11.67s

Tenure

₹8,342,321

Compensation

Mr. Prakash Agarwal has been Managing Director of WPIL Limited since July 1, 2008 and serves as its Director. Mr. Agarwal has been a Non-Executive Director of Hindusthan Udyog Ltd since December 9, 1998. H ...


CEO Compensation Analysis

Compensation vs Market: Prakash's total compensation ($USD110.68K) is above average for companies of similar size in the Indian market ($USD48.50K).

Compensation vs Earnings: Prakash's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Prakash Agarwal
MD & Director11.67yrs₹8.34m2.03% 50.4m
Krishna Ganeriwala
Executive Director18.08yrs₹6.20mno data
Vishwanath Agarwal
Chairman of the Boardno data₹140.00kno data
Samarendra Roy
Non Executive Independent Director14.83yrs₹165.00kno data
Ritu Agarwal
Non-Executive Director5yrs₹125.00kno data
Anjan Dasgupta
Additional Independent Director2.08yrs₹155.00kno data
Rakesh Amol
Additional Independent Director1yrno datano data

5.0yrs

Average Tenure

56yo

Average Age

Experienced Board: 505872's board of directors are considered experienced (5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

WPIL Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: WPIL Limited
  • Ticker: 505872
  • Exchange: BSE
  • Founded: 1952
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: ₹2.489b
  • Shares outstanding: 9.77m
  • Website: https://www.wpil.co.in

Number of Employees


Location

  • WPIL Limited
  • Trinity Plaza
  • 3rd Floor
  • Kolkata
  • West Bengal
  • 700046
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
505872BSE (Mumbai Stock Exchange)YesEquity SharesININRMar 2002

Biography

WPIL Limited, through its subsidiaries, engages in designing, developing, manufacturing, erecting, commissioning, and servicing pumps and pumping systems in India. It offers vertical turbine, mixed flow, and axial flow pumps; concrete and metallic volutes, and turbine pumps; split case, multistage, end suction, and solid handling pumps; wet and dry motor pumps; and non-clog and vertical multistage pumps. The company also provides pump spare parts and accessories. Its products are used in various applications, such as thermal, nuclear, and hydro power plants; and irrigation and drainage, river water pumping, flood control, and mining and offshore, as well as municipal and industrial applications. The company also exports its products. The company was formerly known as Worthington Pump India Limited and changed its name to WPIL Limited in 1995. WPIL Limited was founded in 1952 and is based in Kolkata, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 12:48
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.