WPIL Acquisition, Ceinsys Tech And Krishna Defence & Allied Industries Order

WPIL Ltd.

Recent filing: (ACQUISITION) WPIL's South African subsidiary, APE Pumps Pty Limited, has acquired 100% shareholding of Eigenbau Proprietary Limited, a contracting company specializing in water and wastewater solutions in Southern Africa. This acquisition strengthens WPIL’s presence in Africa and enhances synergies with APE Pumps.

SUMMARY: 5y Operating Profit uptrend | PE 26.3x (Sector PE range 30-60) | Ace Investor | Institutional entry | Orderbook of INR 3,798 Cr (Jun-24) (2x of TTM revenues) | Acquisition | Capital Goods - Non Electrical Equipments

  • MCap of INR 4,453 Crore (share price = INR 456 / share) (as on 9th Oct ‘24)
  • TTM PE 26.3x (as on 9th Oct ‘24) Retail float = 11.6% (Sep-24)

FOOD FOR THOUGHT: Negative operating cash flow for FY24.

Q1. What are the Products and Services offered by AVG Logistics?

WPIL Ltd. in engaged in the business of entire value chain of Pumps & Pumping Systems from concept to commissioning and execution of water supply projects on a turnkey basis for industrial units, power utilities, irrigation departments, etc.

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Ceinsys Tech Ltd.

Recent filing: (ORDER) Ceinsys Tech has received Letter of Award worth INR 332 Cr from State Water and Sanitation Mission (SWSM), Water Supply and Sanitation Department (WSSD), Government of Maharashtra for Appointment of System Integrators (SI’s) for IoT Deployment including Design, Implementation & Maintenance with Centralized IoT Platform for Jal Jeevan Mission Projects in State of Maharashtra for Phase II. The project involves 2 years of implementation and 5 years of operations and maintenance (O&M).

SUMMARY: 3y Operating Profit uptrend | PE 36.6x (Sector PE range 30-50) | Fund Raise | Orderbook of INR 750 Cr (Jun-24) (2.7x of TTM revenue) | New-Age IT

  • MCap of INR 1,412 Crore (share price = INR 864 / share) (as on 9th Oct ‘24)
  • TTM PE of 36.6x (as on 9th Oct ‘24) Retail float = 23.2% (Sep-24)

FOOD FOR THOUGHT: Risk of timing of receivables from Govt. bodies

Q1. What are the Products and Services offered by Ceinsys Tech?

Established in 1998, Ceinsys Tech Limited is leveraging smart technology and analytics to deliver new age solutions in the geospatial and engineering domains. The service offerings of the company include Geospatial Services, Risk Analytics, Engineering Support, Digital Enterprise, Consulting Service and Software Solutions to various industries like Water, Oil & Gas, Energy, Telecom, Transport etc.

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Krishna Defence & Allied Industries Ltd.

Recent filing: (ORDER) Krishna Defence has secured an order worth INR 88.4 Cr, to be executed in 18 Months, for the supply of Special Weld Consumables, designated for a highly critical platform. With this significant order its cumulative order wins for FY25 stands at INR 288 Cr, equating to 2.7x of its last year’s total revenue.

SUMMARY: 4y Operating Profit uptrend | PE 98.4x (Sector PE range 50-100) | Excellent Mar-24 results | Order book of INR 229 Cr (as of Jun-24) (2.2 times of FY24 revenue) | Large Order | Partnerships | Fund raise | Ace Investor | Defence

FUTURE OUTLOOK: As per FY24 Concall (29th May 2024), Company aiming to grow at 40%+ CAGR for the next 3 to 5 years | Company targeting a revenue of INR 180 to INR 200 Cr in FY25 and INR 500 Cr by FY28 | Company aiming to achieve a production capacity of around 4,000 tons, with capacity expansion.

  • MCap of INR 959 Crore (share price = INR 700 / share) (as on 9th Oct ‘24)
  • TTM PE 98.4x (as on 9th Oct ‘24) Retail float = 15% (May-24)

FOOD FOR THOUGHT: Negative operating cash flow for FY24.

Q1. What are the Products and Services offered by Krishna Defence & Allied Industries?

Krishna Defence & Allied Industries has comprehensive in-house capabilities of designing, developing and manufacturing a wide range of equipment for defence, security, dairy and mega kitchen verticals. Its clientele includes Indian Army, DRDO, Goa Shipyard, Amul, Keventers etc.

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