This Mukul Agarwal portfolio stock has tanked 49% thus far in February

Shares of WPIL were down 8% to Rs 356.65 on the BSE in Tuesday's intra-day trade and quoting lower for the sixth straight trading day, falling 42% during the period on weak Q3 results

Shares of WPIL have continued under pressure, falling 8 per cent to Rs 356.65 on the BSE in Tuesday’s intra-day trade amid heavy volumes. The stock of this smallcap company is quoting lower for the sixth straight trading day, falling 42 per cent after it reported a weak set of numbers for the quarter ended December 2024 (Q3FY25). 

 

Thus far in the month of February, it has tanked 49 per cent from the level of Rs 700 on February 1, 2025. The stock had hit a record high of Rs 768 on January 8, 2025. At 11:04 am, WPIL was trading 6 per cent lower at Rs 362.95, as compared to the 0.43 per cent decline in the BSE Sensex.

 

In the previous two calendar years, WPIL had zoomed over 90 per cent. In calendar year 2024, the stock surged 93 per cent, while, in calendar year 2023, it skyrocketed 224 per cent.

 

Investor Mukul Mahavir Agarwal held 1.4 million equity shares, or a 1.43 per cent stake, in WPIL at the end of December 2024 quarter, shareholding pattern data on the bourses showed.

 

WPIL is engaged in the business of providing fluid handling solutions – from supply of pumps to turnkey project execution. It supplies a comprehensive range of pumps to the industrial, municipal, irrigation and power sectors. The company also has a strong project division which undertakes water management contracts in the above sectors.

 

In Q3FY25, WPIL reported 93.1 per cent year-on-year (YoY) and 47.2 per cent quarter-on-quarter (QoQ) decline in its consolidated profit after tax at Rs 37.10 crore, due to a drop in its revenues. 

 

The company’s revenue from operations decreased 11.4 per cent YoY, and 22.2 per cent QoQ, to Rs 381.60 crore. Earnings before interest, tax, depreciation and amortisation (Ebitda) margin contracted 365 basis points (bps) YoY and 867 bps QoQ at 12.60 per cent.

 

The management said the projects division revenues (which account for 65 per cent of total revenues) in the quarter were affected due to Jal Jeevan Mission funds shortage across all clients. The project execution momentum slowed down in the quarter as outstandings drastically increased; however the company maintained its construction focus to take advantage of the winter construction period.

 

The company expects the situation to improve starting next fiscal on the back of announcements made in the Budget 2025. Similarly, the pace of new tenders is also expected to pick up going forward and the company expects to see growth in this segment next fiscal onwards, WPIL said.

 

The outlook for the product division remains strong with a healthy enquiry pipeline. Further, the development of drainage pump orders from Thailand is currently in an advanced stage, the company said.

 

The company, being one of the leaders in the pump industry, foresees good growth in both domestic and international operations with an improved outlook across businesses. Geopolitical developments remain the biggest risks, which are rising with political changes taking place globally. These political changes along with policy changes will affect global trade and access to markets with a thrust on localisation, WPIL said in its FY24 annual report.