Defence stock held by Ashish Kacholia trading at a discount of up to 50% to keep on your radar

Synopsis: Walchandnagar Industries Limited’s share has fallen X% from its 52-week high due to declining revenues, rising losses, negative return ratios, and weak financial fundamentals, signalling deteriorating business performance and reduced investor confidence.

This Defence Stock, engaged in designing, engineering, manufacturing and commissioning heavy engineering equipment and turnkey projects for sugar, cement, power, defence, nuclear and aerospace sectors, is in focus after the company is trading at a discount of up to 48.94 percent from its 52-week high

With a market capitalization of Rs. 1,051.31 crore, the shares of Walchandnagar Industries Limited were currently trading at Rs. 155 per equity share, rising nearly 1.17 percent from its previous day’s close price of Rs. 153.20. 

The stock is down by 48.94 percent from the 52-week high of Rs. 303.55. In the calendar year, the stock has given a negative return of 47.20 percent. The stock has given a positive return of 140.09 percent in the last five years. 

Why Are Walchandnagar Industries’ Stock Prices Declining?

Walchandnagar Industries has seen weakening financial performance, falling revenues, and rising losses, which have collectively impacted market sentiment and led to a decline in its share price of up to 48.94 percent from the 52-week high of Rs. 303.55. Here are the points below:

Sharp drop in revenues: Walchandnagar’s sales declined from Rs. 322 crore in FY23 to Rs. 302 crore in FY24 and further reduced to Rs. 259 crore in FY25 (-14.24 percent YoY), signalling strong top-line shrinkage.

Repeated quarterly and growing losses: The company moved from a Rs. 20 crore profit in FY23 to losses of Rs. 42 crore in FY24 and Rs. 86 crore in FY25. Further, the company reported a net loss of Rs. 11.90 crore in Q2 FY26 (vs. -Rs. 10.39 crore in Q1 FY26), and cumulative H1 losses of Rs. 22.29 crore.

Negative return metrics (ROE, ROCE): For FY2025, ROE was about -25.3 percent and ROCE around -8.33 percent, indicating the business destroyed shareholder value instead of generating returns. The company shows a poor interest coverage ratio, a high debt burden relative to earnings (high debt-to-EBITDA ratio), and low profitability.

Company Overview

Walchandnagar Industries Limited (WIL) is one of India’s oldest engineering companies, founded in 1908 by industrialist Seth Walchand Hirachand. Over more than a century, it has evolved from a domestic engineering firm into a diversified heavy engineering and project-execution company with customers in India and overseas.

The company is mainly engaged in designing, engineering, fabrication and manufacturing of heavy machinery and critical equipment. Its work spans core areas such as sugar plants, cement plants, boilers, heavy-duty gears, mineral processing equipment, as well as special-purpose machinery for defence, nuclear power and aerospace programmes.

Business Segments and Product Portfolio

Walchandnagar Industries Limited (WIL) operates in areas such as defence and missile systems, aerospace, nuclear power, gearboxes, cement machinery, power plants, instrumentation, foundry, and sugar machinery. 

The company works through Heavy Engineering, Foundry & Machine Shop, and Other segments, offering turnkey sugar plants, boilers, cement equipment, industrial and marine gearboxes, castings, centrifugals, and precision components for aerospace and nuclear projects.

Client Base

Walchandnagar Industries Limited serves many major government and defence organisations in India. Its important clients include ISRO, DRDO, Indian Navy, Bharat Dynamics Limited, Goa Shipyard, Hindustan Shipyard, BrahMos Aerospace, and Mazagon Dock. 

Nuclear Energy Projects & Growth Strategy

Walchandnagar Industries Limited is actively working on important nuclear energy projects. These include waste management plants, spent fuel storage facilities, and mechanical-electrical installations at major sites like Tarapur and Kalpakkam for India’s nuclear power program.

For future growth, the company is focusing on making key nuclear equipment within India. It is also strengthening long-term partnerships with government nuclear agencies and using its experience in high-precision nuclear technology projects to gain more orders.

Shareholding Pattern

In September 2025, Walchandnagar Industries Limited had a majority stake held by the promoters at 31.59 percent, foreign institutional investors at 0.38 percent, domestic institutional investors at 0.80 percent, the government at 0.02 percent and the public at 67.20 percent. Ace investor Ashish Kacholia holds a 2.59 percent stake in Walchandnagar Industries Limited, valued at Rs. 26.7 crores, consisting of 17,54,385 shares.

Recent quarter results

Coming into financial highlights, Walchandnagar Industries Limited’s revenue has decreased from Rs. 67.86 crore in Q2 FY25 to Rs. 51.78 crore in Q2 FY26, which is a drop of 23.70 percent. The net loss of the company has increased from Rs. 10.39 crore in Q2 FY25 to Rs. 11.90 crore in Q2 FY26.

In terms of return ratios, the company’s ROCE and ROE stand at -8.33 percent and -25.3 percent, respectively. Walchandnagar Industries Limited has an earnings per share (EPS) of Rs. -14.7, and its debt-to-equity ratio is 0.56x.

Written By – Nikhil Naik

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