High ROE Stock: Winsol Engineers Sets Up Zambian Subsidiary and Wins New Order

Winsol Engineers Limited has announced 2 notable updates this March, reflecting its ambitions to scale both internationally and within India. The company has established a new foreign subsidiary in Zambia and secured a domestic contract valued at over ₹2.52 crore, marking a step forward in its strategic roadmap.

Overseas Expansion: New Subsidiary in Zambia

Winsol Engineers incorporated a wholly-owned foreign subsidiary named Winsol Engineers Zambia Limited, based in Lusaka. This entity will engage in electric power generation, transmission, and distribution, as well as the manufacture of electric motors, transformers, and related control apparatus. Retailing of hardware, paints, and glass also falls under its scope.

Winsol Engineers Limited holds a 51% stake in the newly formed subsidiary through a cash-based subscription of 10,200 shares at K1 Zambian Kwacha each. This move is seen as a strategic attempt to tap into the African market and broaden its international footprint, aligned with the company’s goal of creating new growth avenues outside India.

Domestic Order for Transmission Line Material

In another announcement, Winsol revealed it received a purchase order from BA Prerna Renewables Private Limited. The order, valued at ₹2,52,28,223 (excluding GST), is for the supply of 220kV Extra High Voltage (EHV) transmission line materials.

This order is expected to enhance Winsol’s customer base and contribute significantly to its top line. The order will be executed as per the terms and conditions agreed upon by both parties. The company confirmed that the contract does not fall under related party transactions.

Stock Market Snapshot

As of 9:31 AM on March 27, 2025,  Winsol Engineers share price was trading at ₹186.60, reflecting an intraday gain of 1.80%. The company currently trades at a price-to-earnings (PE) ratio below 20x and boasts a return on equity (ROE) of 67%. 

Conclusion

The combination of a fresh overseas venture and a high-value domestic order illustrates Winsol Engineers’ 2-pronged strategy: consolidating its presence in the Indian market while venturing into international markets.

The developments are aligned with the company’s long-term vision of becoming a diversified engineering player in the power sector, leveraging both geographic and operational expansion.

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