Emkay Global Financial Maintains 'Buy' Rating, Targets WPIL at Rs 650
Emkay Global Financial Maintains BUY Rating on WPIL
Emkay Global Financial's research report on WPIL highlights the company's strong potential for growth, driven by its globally diversified presence across the pump sector and a robust order book. According to the report, WPIL has a strong order book of Rs49 billion, representing a year-over-year (YoY) increase of 47%.
This significant growth in the order book is expected to lead to a stronger revenue compound annual growth rate (CAGR) of 29% over the fiscal years 2026-2028 (FY26-28E), with a pick-up in execution. Additionally, the company is expected to see an earnings before interest, taxes, depreciation, and amortization (EBITDA) and earnings per share (EPS) CAGR of approximately 32% and 41%, respectively, over the same period. This growth is attributed to a better revenue mix and increasing high-margin aftermarket and operations and maintenance (O&M) revenue.
The report highlights that structural demand tailwinds across water infrastructure, desalination, and wastewater treatment are expected to be key growth drivers for WPIL. These demand tailwinds are expected to contribute to the company's continued growth and success.
| Company | YoY Revenue Growth (FY26-28E) | YoY EBITDA/ EPS Growth (FY26-28E) |
|---|---|---|
| WPIL | 29% | 32%/41% |
The research report maintains a BUY rating on WPIL, with an unchanged target price of Rs650. This implies a potential upside of approximately 40% for investors.
| Recommendation | Target Price | Upside Potential |
|---|---|---|
| BUY | Rs650 | 40% |
The strong growth prospects and positive outlook for WPIL make it an attractive investment opportunity for investors seeking to capitalize on the company's potential.
Investor Takeaway
Maintain 'Buy' rating on WPIL with a target price of Rs 650.
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