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Last Updated on: 22 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 590073 | NSE: WHEELS

Wheels India Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 21, 2024, 9:13 pm

Market Cap 1,668 Cr.
Current Price 684
High / Low915/548
Stock P/E17.6
Book Value 356
Dividend Yield1.08 %
ROCE12.3 %
ROE7.38 %
Face Value 10.0
PEG Ratio0.16

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Wheels India Ltd

Competitors of Wheels India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Enkei Wheels India Ltd 1,128 Cr. 628760/490146 1350.00 %7.01 %5.15 % 5.00
Wheels India Ltd 1,668 Cr. 684915/54817.6 3561.08 %12.3 %7.38 % 10.0
Steel Strips Wheels Ltd 3,176 Cr. 201290/18914.7 92.00.50 %18.7 %17.7 % 1.00
Industry Average1,990.67 Cr504.3359.43194.330.53%12.67%10.08%5.33

All Competitor Stocks of Wheels India Ltd

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales7299731,0771,1881,1341,1841,0781,2511,2121,2841,2101,2711,166
Expenses6819061,0101,1161,0861,1271,0331,1811,1531,2361,1501,1741,086
Operating Profit48676772485745705848609779
OPM %7%7%6%6%4%5%4%6%5%4%5%8%7%
Other Income51275115647254
Interest17161920222627303130303129
Depreciation24262626181918192021212223
Profit before tax1327243413141426113115031
Tax %26%25%23%24%24%25%26%17%21%-12%19%24%25%
Net Profit9201926101011219393824
EPS in Rs4.068.558.0511.124.224.724.989.284.071.784.1415.769.66

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales1,9872,1732,5633,4412,6722,4133,9664,6404,9774,932
Expenses1,8151,9872,3643,1962,5002,2703,7124,4204,7114,647
Operating Profit172186199245172143255221266285
OPM %9%9%8%7%6%6%6%5%5%6%
Other Income242388216261619
Interest58484566675971106122121
Depreciation606470797886101748587
Profit before tax567810610836198667595
Tax %29%24%29%30%-33%85%24%22%21%
Net Profit4159757647074515974
EPS in Rs17.0724.5831.1531.7920.390.7631.7823.0025.6931.34
Dividend Payout %26%26%24%25%28%132%26%30%29%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2016-20172017-20182018-20192019-20202020-20212022-20232023-2024
YoY Net Profit Growth (%)43.90%27.12%1.33%-38.16%-100.00%-31.08%15.69%
Change in YoY Net Profit Growth (%)0.00%-16.78%-25.79%-39.49%-61.84%68.92%46.77%

Wheels India Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 7 years from 2016-2017 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:%
5 Years:8%
3 Years:27%
TTM:0%
Compounded Profit Growth
10 Years:%
5 Years:-5%
3 Years:689%
TTM:116%
Stock Price CAGR
10 Years:4%
5 Years:2%
3 Years:0%
1 Year:3%
Return on Equity
10 Years:%
5 Years:7%
3 Years:8%
Last Year:7%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 6:33 pm

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital12121224242424242424
Reserves402457575616640637710731815845
Borrowings386369359495650698876819778748
Other Liabilities4955327188806741,1181,3641,4741,4871,424
Total Liabilities1,2951,3691,6632,0151,9872,4762,9743,0483,1043,041
Fixed Assets5185265577107538839031,0601,1491,158
CWIP1722656519811412611477144
Investments17192123232324223241
Other Assets7438021,0191,2161,0131,4561,9211,8511,8451,699
Total Assets1,2951,3691,6632,0151,9872,4762,9743,0483,1043,041

Reserves and Borrowings Chart

Cash Flow

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +14815513118418414828370329
Cash from Investing Activity +-69-75-135-230-242-118-120-152-150
Cash from Financing Activity +-82-7593870-3184-216-146
Net Cash Flow-255-912-0-9334

Free Cash Flow

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow-214.00-183.00-160.00-250.00-478.00-555.00-621.00-598.00-512.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days6473696265112826053
Inventory Days84717866811191019589
Days Payable1041081039799195136124121
Cash Conversion Cycle443744314636463121
Working Capital Days423540333358533427
ROCE %15%15%16%8%4%11%11%12%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthDec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024
Promoters57.53%57.53%57.53%57.53%58.10%58.73%58.73%58.31%58.31%58.31%58.31%58.31%
FIIs0.00%0.27%0.33%0.40%0.40%0.42%0.21%0.26%0.19%0.29%0.81%0.42%
DIIs20.16%19.93%19.95%19.98%20.02%20.02%20.02%18.81%18.32%13.13%12.16%11.99%
Public22.32%22.27%22.19%22.09%21.48%20.83%21.04%22.61%23.18%28.27%28.72%29.28%
No. of Shareholders16,34616,21716,19515,78515,65815,58715,35216,24516,77520,43421,22622,686

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Nippon India ELSS Tax Saver Fund1,509,4060.799.261,509,4062024-11-210%
Taurus Flexi Cap Fund21,2830.431.41,509,4062024-11-21-98.59%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)25.6924.1331.780.7620.39
Diluted EPS (Rs.)25.6924.1331.780.7620.39
Cash EPS (Rs.)55.5150.4171.4535.6652.06
Book Value[Excl.RevalReserv]/Share (Rs.)347.49323.01312.01282.63284.58
Book Value[Incl.RevalReserv]/Share (Rs.)347.49323.01312.01282.63284.58
Revenue From Operations / Share (Rs.)2037.371933.151648.581003.061110.39
PBDIT / Share (Rs.)112.1899.43110.9960.4174.80
PBIT / Share (Rs.)77.4269.4569.0224.8442.42
PBT / Share (Rs.)27.2826.7039.310.3614.77
Net Profit / Share (Rs.)20.7520.4229.490.0819.67
NP After MI And SOA / Share (Rs.)25.6924.1431.780.7520.39
PBDIT Margin (%)5.505.146.736.026.73
PBIT Margin (%)3.803.594.182.473.82
PBT Margin (%)1.331.382.380.031.33
Net Profit Margin (%)1.011.051.780.001.77
NP After MI And SOA Margin (%)1.261.241.920.071.83
Return on Networth / Equity (%)7.477.5910.420.277.39
Return on Capital Employeed (%)15.6815.9915.525.519.94
Return On Assets (%)2.021.922.570.072.46
Long Term Debt / Equity (X)0.340.260.340.500.42
Total Debt / Equity (X)0.901.001.160.860.76
Asset Turnover Ratio (%)1.631.551.421.051.29
Current Ratio (X)0.940.930.981.031.02
Quick Ratio (X)0.470.500.560.630.59
Inventory Turnover Ratio (X)4.164.234.293.353.98
Dividend Payout Ratio (NP) (%)0.0012.433.15350.5417.73
Dividend Payout Ratio (CP) (%)0.005.541.357.296.85
Earning Retention Ratio (%)0.0087.5796.85-250.5482.27
Cash Earning Retention Ratio (%)0.0094.4698.6592.7193.15
Interest Coverage Ratio (X)2.242.333.742.472.71
Interest Coverage Ratio (Post Tax) (X)1.411.481.991.001.71
Enterprise Value (Cr.)2222.411859.922092.561676.771273.70
EV / Net Operating Revenue (X)0.440.390.520.690.47
EV / EBITDA (X)8.117.777.8411.547.08
MarketCap / Net Operating Revenue (X)0.290.230.310.450.28
Retention Ratios (%)0.0087.5696.84-250.5482.26
Price / BV (X)1.741.421.681.651.13
Price / Net Operating Revenue (X)0.290.230.310.450.28
EarningsYield0.040.050.060.000.06

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Wheels India Ltd as of November 22, 2024 is: 467.40

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 22, 2024, Wheels India Ltd is Overvalued by 31.67% compared to the current share price 684.00

Intrinsic Value of Wheels India Ltd as of November 22, 2024 is: 983.44

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 22, 2024, Wheels India Ltd is Undervalued by 43.78% compared to the current share price 684.00

Last 5 Year EPS CAGR: 110.41%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (642.80 cr) compared to borrowings (617.80 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (2.70 cr) and profit (71.90 cr) over the years.
  1. The stock has a low average ROCE of 10.22%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 39.44, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 37.33, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Wheels India Ltd:
    1. Net Profit Margin: 1.01%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 15.68% (Industry Average ROCE: 12.67%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 7.47% (Industry Average ROE: 10.08%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 1.41
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 0.47
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 17.6 (Industry average Stock P/E: 59.43)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.9
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Wheels India Ltd. is a Public Limited Listed company incorporated on 13/06/1960 and has its registered office in the State of Tamil Nadu, India. Company’s Corporate Identification Number(CIN) is L35921TN1960PLC004175 and registration number is 004175. Currently Company is involved in the business activities of Manufacture of electric motors, generators, transformers and electricity distribution and control apparatus. Company’s Total Operating Revenue is Rs. 3686.69 Cr. and Equity Capital is Rs. 24.06 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Auto Ancl - Dr. Trans & Steer - WheelsNo.21, Patullos Road, Chennai (Madras) Tamil Nadu 600002investorservices@wheelsindia.com
https://wheelsindia.com
Management
NamePosition Held
Mr. S RamChairman
Mr. Srivats RamManaging Director
Mr. Rishikesha T KrishnanDirector
Mr. S VijiDirector
Mr. S PrasadDirector
Mr. Aroon RamanDirector
Mr. R Raghuttama RaoDirector
Ms. Sumithra GomatamDirector

FAQ

What is the latest intrinsic value of Wheels India Ltd?

The latest intrinsic value of Wheels India Ltd as on 22 November 2024 is ₹467.40, which is 31.67% lower than the current market price of ₹684.00.

What is the Market Cap of Wheels India Ltd?

The Market Cap of Wheels India Ltd is 1,668 Cr..

What is the current Stock Price of Wheels India Ltd as on 22 November 2024?

The current stock price of Wheels India Ltd as on 22 November 2024 is ₹684.

What is the High / Low of Wheels India Ltd stocks in FY 2024?

In FY 2024, the High / Low of Wheels India Ltd stocks is 915/548.

What is the Stock P/E of Wheels India Ltd?

The Stock P/E of Wheels India Ltd is 17.6.

What is the Book Value of Wheels India Ltd?

The Book Value of Wheels India Ltd is 356.

What is the Dividend Yield of Wheels India Ltd?

The Dividend Yield of Wheels India Ltd is 1.08 %.

What is the ROCE of Wheels India Ltd?

The ROCE of Wheels India Ltd is 12.3 %.

What is the ROE of Wheels India Ltd?

The ROE of Wheels India Ltd is 7.38 %.

What is the Face Value of Wheels India Ltd?

The Face Value of Wheels India Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Wheels India Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE