Defence stock hits 5% upper circuit after foraying into next gen defence technologies

The shares of the Heavy Engineering Company hit 5 percent upper circuit at Rs 161.75 after the company announced its foray into next-generation defence technologies.

Price Movement

With a market capitalisation of Rs 897.05 crore, the shares of Walchandnagar Industries Ltd were trading at Rs 161.75 per share, increasing around 5 percent as compared to the previous closing price of Rs 154.05 apiece.

Matter Explanation

The shares of Walchandnagar Industries Ltd have seen bullish movement after announcing a deal to acquire a 60.3 percent stake in AiCitta Intelligent Technology, a company engaged in R&D and the manufacture of Unmanned Ground Vehicles (UGVs). 

Moreover, with this deal, Aicitta becomes a wholly-owned subsidiary of WIL, marking its entry into next-generation defence technologies. Proven effective in recent global conflicts, this move unlocks new growth opportunities for WIL, strengthening its position in the defense sector.

Ace Investor

One of the prominent investors, Ashish Kacholia, holds 17,54,385 equity shares which is equivalent to 2.60 percent of the company, as of January 2025.

Also read: L&T Group stock to buy now for an upside potential of more than 20%; Do you own it?

Financial condition

Looking forward to the company’s financial performance, revenue tumbled by 4 percent from Rs 56 crore in Q3FY24 to Rs 59 crore in Q3FY25, but during the same time, net loss shrunk by from Rs 19 crore to Rs 17 crore.

Manufacturing Facility

The company operates three manufacturing facilities: Walchandnagar, producing nuclear, aerospace, missile, defense, and gear products with a 250-ton crane capacity; Satara Foundry, with a 1,200 TPD liquid metal capacity; and Dharwad, specializing in precision components and instruments.

Company Overview

Walchandnagar Industries is a heavy engineering company operating in defence, nuclear power, aerospace, oil & gas, and industrial products. It manufactures critical defence components, and core nuclear power equipment, and plays a key role in India’s space program with advanced engineering solutions.

Written by Abhishek Singh

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