Buy WPIL; target of Rs 550: Emkay Global Financial

Moneycontrol • 1 day ago

Original source

Key Investment Pillars

  • WPIL's products division is expected to recover in 2H, driven by strong demand from the power sector and a healthy order backlog of Rs10.3bn.
  • The projects division is expected to pick up in 2H, driven by domestic execution and O&M revenue, with a healthy order backlog of Rs40.8bn.
  • International business remains a key growth driver, with a strong order backlog and healthy revenue visibility.
  • Margin expansion is expected, driven by revenue recovery and a strong underlying margin profile.

Thesis Validation Checklist

  • Watch for dispatch normalization in the products division and execution pickup in the projects division in 2H.
  • Monitor order inflows and backlog growth, particularly in the international business.
  • Track margin expansion and revenue recovery, driven by operating leverage and a strong underlying margin profile.