WIPRO in 2000 to operate as a
separate company with focus on IT peripherals such
as printers, UPS and networking products, has now given birth to another IT services and solutions firm. As part of its corporate
restructuring plans, the company has demerged its IT services business into a
separate company with primary focus on enterprise security, managed printing
solutions and technology distribution Known as WeP Solutions Ltd., the new
company was legally-separated from WeP Peripherals in March 2008.
WeP Solutions ltd is a leading computer & internet peripherals company inIndia with
annual sales of USD 64 million. Wep commenced operations in 1986 as a
peripherals division of WIPRO LTD, one of the largest it companies in
India
and has become independent legal entity in year 2000. WEP Solutions ltd is one
of the largest employee owned company in the country and has a track record of
uninterrupted growth for the last 18years. WEP is know for its quality with six
sigma initiative and ISO 9000 standards of certifications for its product
development, manufacturing, marketing and support and its unique 30 day money
back offer. Manufacturing facility: Wep has three state-of-the art
manufacturing facilities one at Mysore producing over 120,000 dot matrix
printers per annum, another at Hyderabad producing over 200,000 products and
third manufacturing facility was started in Himachal Pradesh in northern India
a year back for manufacture dot matrix printers Our manufacturing facilities in
Mysore and Hyderabad are ehtp thru which we also do contract manufacturing and
exports to prestigious customers like seiko precision and triumph adler / Bandermann
for European markets and export our printers to China, srilanka, Dubai, Nepal
and other south east Asian countries. All our three manufacturing facilities
are iso-9000 certified.
WeP Solutions ltd is a leading computer & internet peripherals company in
The main customers of WeP in
Design Services division are Honeywell, Wipro, BEL, Nokia , Texas
Instruments, Motorola, Toshiba, Bandermann, Wincor Nixdorf, Printronix etc..
Financials and Conclusion
On a
consolidated basis ,company’s top line spurted from Rs.0.84 Cr in 2010 to Rs.7.64
Cr in 2014 . Its bottom line is still in loss to profit on an yearly basis .In
last financial year , to write of its entire accumulated loss WeP reduced its
equity capital by half .Promoters are holding 39.26 % stake and other FII’s and WIPRO
LTD together holding another 20 % stake. Because of low floating stock
,liquidity is low in this counter.If you are a risk averse investor and
considering conventional valuation parameters for investment decisions ,it is
not a stock for you .I believe, due to various reasons ,company is at an
inflection point and the better days are just coming.But it is a long term
story and a stock only for those with enough patience.Remember ,this is not a 'multibaggerstocksideas'
but a stock suggestion based on the anticipated future growth of company .WeP
is listed only in BSE & BSE CODE : 532373 and currently trading around Rs.10.
Disc : I have vested
interest in "WeP Solutions Ltd".