According to the Economic Times, the Industrial Products sector in India is a pivotal component of the economy, contributing approximately 17% to the GDP and employing 57.3 million people as of FY 2022-23. With a projected growth rate of 6.2% for FY 2025, this sector is poised for significant expansion, driven by government initiatives and increased foreign investments.
Price Movement
With a market capitalisation of Rs 1,275.56 crore, the shares of Walchandnagar Industries Ltd were trading at Rs 230.00 per share, decreasing around 3.06 percent as compared to the previous closing price of Rs 237.25 apiece.
Matter Explanation
The shares of the company surged significantly, up to 28 percent after Finance Minister Nirmala Sitharaman announced plans to develop 100 GW of nuclear energy by 2047, amend key nuclear laws for private sector participation, and launch a ₹20,000 crore Nuclear Energy Mission to develop five Small Modular Reactors (SMRs) by 2033.
Ace Investor
One of the prominent investors, Ashish Kacholia, holds 17,54,385 equity shares which is equivalent to 2.60 percent of the company, as of January 2025.
Order Book and Business Highlights
The company holds an ₹822 crore order book, with 56% from core manufacturing. It sees strong growth in Aerospace, record Foundry Division turnover, and delivered the first gearbox for Goa Shipyard’s patrol vessels. Focus areas include Defence, Nuclear, Aerospace, and Sugar, with ₹1,500 crore in pipeline offers.
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Debt Reduction and CAPEX Plans
The company aims to halve its debt in 2–3 years through collections, asset sales, and equity raising while investing ₹100 crore in Nuclear, Gear Boxes, and Aerospace. It plans to raise ₹50–100 crore in equity before September 2019, ensuring promoter dilution remains above 40%.
Future outlook
The company is optimistic about growth in India’s Defence and Aerospace sectors, aiming for an annual turnover of ₹1,500-2,000 crore within five years while maintaining 20-22% EBITDA margins. It focuses on high-tech manufacturing, ensuring strong cash flow and profitability despite challenges in the working capital cycle.
With retention money from EPC projects expected to be released soon, the working capital cycle will improve significantly, reducing the need for further funding beyond the next 7-8
months. Maintenance CAPEX remains low at ₹1-2 crore, while expansion CAPEX drives growth, ensuring long-term self-sustainability post-equity dilution.
Company Overview
Walchandnagar Industries is a heavy engineering company operating in defence, nuclear power, aerospace, oil & gas, and industrial products. It manufactures critical defence components, and core nuclear power equipment, and plays a key role in India’s space program with advanced engineering solutions.
Written by Abhishek Singh
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