WPIL shares surge after pump company wins Rs 425-crore order from West Bengal government

Kolkata-headquartered pump maker WPIL's shares surged on Friday after the company won an order worth Rs 425.4 crore from the Public Health Engineering Department under the West Bengal government. At 10:50 am, the stock of WPIL—which designs, develops, manufactures, erects, commissions, and services pumps and pumping systems—was locked in the 5.0 per cent upper circuit at Rs 3,584.5 apiece on BSE, coming within Rs 240 of a record high scaled in August. 

The deal involves the development of a water supply project, to be completed in 27 months, and includes operations and maintenance activities for three years, according to a regulatory filing. 

As part of the agreement, WPIL will be executing a "turnkey project for Package II of the surface-based water supply scheme, Northern Sector, under the Purulia District", it said.

WPIL said the order does not fall within related party transactions. 

Should you buy, sell or hold WPIL shares?

Zee Business analyst Varun Dubey recommends buying WPIL shares for a short-term target of Rs 3,500 with a stop loss at Rs 3,380.

WPIL Q2 results

Last month, the company reported a consolidated net profit of Rs 34.5 crore for the quarter ended September 30, an increase of 47.7 per cent compared with the corresponding period a year ago. 

Its quarterly revenue came in at Rs 353.6 crore, as against Rs 408.3 crore for the year-ago period, according to a regulatory filing. 

WPIL shares

 WPIL shares are on track to finish 2023 with a gain of more than three times, sharply outperforming a 17.5 per cent rise in the headline Nifty50 index.

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