Synopsis:
NHPC, SJVN, Lloyds Metals & Energy, Ideaforge Technology and E2E Networks are four fundamentally strong stocks with Capital Work in Progress (CWIP) greater than fixed assets. The firms are making significant investments in the implementation of their projects, resulting in CWIP that is substantially higher than their respective fixed asset bases.
If a company has continuous work in progress (CWIP) greater than fixed assets, this would mean that the company is increasing its production capacity and making investments for growth in the future.
Such a move suggests that a company is loaded with great projects and there is a possibility of winning greater revenues in the future, besides showcasing the strategic focus on creating value for the long term.
1. NHPC
NHPC Limited generates and trades power through hydro, wind, and solar plants in India and Nepal. It also offers construction, maintenance, and consultancy services, and supplies electricity mainly to state utilities and private distributors.
Its CWIP currently stands at Rs 50,601 crore, which is higher than its fixed assets of Rs 22,168 crore. CWIP has grown from Rs 19,087 crore in FY18 to Rs 50,601 crore in FY25, reflecting a sharp rise in ongoing projects.
2. SJVN
SJVN Limited, with its subsidiaries, generates and sells electricity in India and abroad through hydro, thermal, wind, and solar power, along with power transmission. It also operates an India–Nepal transmission line and offers consultancy, project management, and power trading services.
Its CWIP has reached Rs 26,162 crore in FY25, higher than the fixed assets of Rs 11,863 crore. In the last five years, CWIP has risen from Rs 4,298 crore in FY21 to Rs 26,162 crore in FY25, reflecting a rapid buildup of projects underway.
3. Lloyds Metals & Energy
Lloyds Metals and Energy Limited, established in 1977 and having its head office in Mumbai, produces and markets sponge iron products in India. It is engaged in three business segments: Sponge Iron, Power, and Mining. Besides, it generates by-products such as char, fly ash, ESP dust, bed materials, and iron ore fines, and engages in power generation and distribution.
Its CWIP stands at Rs 4,181 crore in FY25, well above its fixed assets of Rs 1,613 crore. Over the last five years, CWIP has jumped from Rs 85 crore in FY21 to Rs 4,181 crore in FY25, showing a steep rise in projects under execution.
4. E2E Networks
E2E Networks Limited provides cloud infrastructure and computing services in India. It offers cloud platforms for deploying and managing Linux, Windows, and GPU-based machines, along with storage and cloud solutions. Its products support data science, NLP, computer vision, digital-native workloads, and enterprise applications.
Its CWIP in FY25 stands at Rs 636 crore, exceeding its fixed assets of Rs 389 crore. Over the past five years, CWIP has moved from nil levels up to Rs 636 crore, marking the beginning of sizeable projects under progress.
The CWIP primarily represents the ongoing development of its GPU capacity in Chennai. Out of this, Rs 311 crore has already been capitalized during the quarter, while the remaining Rs 326 crore is still in progress.
5. Ideaforge Technology
IdeaForge Technology Ltd is the manufacturer of unmanned aerial vehicles (UAVs) and the supplier of associated software for security, surveillance, and logistics. The company has a variety of products ranging from drones like NETRA and YETI, payloads (e.g., cameras and LiDAR), autopilot systems, ground control software, and batteries, along with the services of training and repair, besides the options of consulting and customer support.
Its CWIP in FY25 stands at Rs 100 crore, exceeding its fixed assets of Rs 97 crore. Over the past five years, CWIP has moved up from 14 crore to Rs 100 crore, marking the beginning of sizeable projects in progress.
Although NHPC, SJVN, Lloyds Metals & Energy, and E2E Networks boast robust project pipelines with CWIP greater than fixed assets, it still remains a must for investors to conduct their own due diligence before committing their money. Assessing a firm’s financial health, future potential, and risk exposure are essential steps towards making the right decisions.
Written by Satyajeet Mukherjee
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