This small-cap stock engaged in infrastructure development, specializing in transportation, water and wastewater management, tunneling, and urban solutions, jumped 2 percent after receiving an order worth Rs. 79 crore from Vadodara Municipal Corporation (VMC) for the rehabilitation of a 1,800 mm drainage line in Vadodara, Gujarat.
Stock Price Movement
With a market capitalization of Rs. 6,969.83 crores, the share of Welspun Enterprises Ltd (NSE:WELS) has reached an intraday high of Rs. 511.15 per equity share, rising nearly around 2.03 percent from its previous day’s close price of Rs. 501. Since then, the stock has retreated and is currently trading at Rs. 503.55 per equity share.
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What Happened
Welspun Michigan Engineers Limited (WMEL), a subsidiary of Welspun Enterprises, has secured a Rs. 79.29 crore order from Vadodara Municipal Corporation (VMC) for the rehabilitation of a 1,800 mm drainage line in West Zone, Vadodara, Gujarat.
The project is to be completed within 12 months (excluding the monsoon) and will enhance the city’s infrastructure using advanced trenchless technology. With this order, WMEL’s order book grows to Rs. 2,994.71 crore. This project marks WMEL’s entry into a new market, strengthening its growth strategy in urban infrastructure.
Order Book
The company’s consolidated order book currently stands at Rs. 14,500 crores, with Rs. 9,300 crores from water projects, Rs. 1,950 crores from tunneling, and Rs. 1,750 crores from transportation. By the end of FY25, the order book is expected to grow to Rs. 15,000-20,000 crores.
Over the next 5 to 7 years, the company has identified projects worth over Rs. 6 lakh crores in key areas like water supply, wastewater treatment, and BOT toll projects. Its long-term goal is to become a technology-driven, end-to-end water solution provider, offering integrated solutions in treatment, conveyance, and smart management.
Strategic Investment
The company has launched SmartOps technology, a new solution for wastewater and water treatment, with recent orders secured in Pandharpur (Maharashtra) and Varanasi (UP). This initiative is expected to contribute Rs. 43-45 crores to FY25 sales, with a potential 100-150 percent growth in FY26.
Margin Guidance
The management expects to finish FY25 with a consolidated EBITDA of about Rs. 700 crores, aiming for an EBITDA margin of around 19 percent. They also project annual revenue growth of 15 percent to 20 percent over the next three years, though growth may be slower due to recent delays in order inflows.
Segment Performance
In Q3 FY25, the company achieved segment-wise revenues of Rs. 328 crores from Transport, Rs. 365 crores from Water, and Rs. 174 crores from Tunneling, reflecting strong performance across key business sectors.
Recent quarter results
Welspun Enterprises Limited’s revenue has increased from Rs. 707 crore in Q3 FY24 to Rs. 867 crore in Q3 FY25, which has grown by 22.63 percent. The net profit has decreased by 3.75 percent from Rs. 80 crore in Q3 FY24 to Rs. 77 crore in Q3 FY25.
Written By – Nikhil Naik
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