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Last Updated on: 21 July, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 505412 | NSE: WENDT

Fundamental Analysis of Wendt India Ltd

Basic Stock Data

Last Updated: July 20, 2024, 10:24 pm

Market Cap 3,032 Cr.
Current Price 15,162
High / Low17,057/9,526
Stock P/E81.9
Book Value 1,061
Dividend Yield0.33 %
ROCE24.7 %
ROE18.5 %
Face Value 10.0
PEG Ratio2.52

Data Source: screener.in

Competitors of Wendt India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Carborundum Universal Ltd 32,737 Cr. 1,7211,841/1,02670.8 1640.23 %20.1 %15.6 % 1.00
Industry Average32,737.00 Cr1,721.0070.80164.000.23%20.10%15.60%1.00

Quarterly Result

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Sales46424741484852515951515470
Expenses37333632363638384239394153
Operating Profit99129111114141712121318
OPM %19%22%25%22%24%24%27%27%29%24%24%24%25%
Other Income1111111222222
Interest0000000000000
Depreciation2222222222222
Profit before tax78118101013131612121317
Tax %24%26%25%29%27%25%25%25%22%26%25%26%22%
Net Profit568677101013991013
EPS in Rs26.5030.0040.2027.8037.3536.1550.0050.3563.9545.1044.7548.0066.90

Last Updated: July 10, 2024, 11:24 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: July 10, 2024, 11:24 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Sales101110124135146147165143137179210227
Expenses7989100112120120134124114136154171
Operating Profit222124232627301923425756
OPM %22%19%19%17%18%18%18%13%17%24%27%25%
Other Income222223254457
Interest000111011100
Depreciation558910101099989
Profit before tax191717161718221417375354
Tax %31%30%20%32%27%27%30%26%25%27%24%24%
Net Profit131214111213151013274041
EPS in Rs64.3058.3067.7053.9060.2565.6077.0550.1563.85135.35200.45204.75
Dividend Payout %23%43%37%46%41%38%39%50%47%48%40%24%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)-7.69%16.67%-21.43%9.09%8.33%15.38%-33.33%30.00%107.69%48.15%2.50%
Change in YoY Net Profit Growth (%)0.00%24.36%-38.10%30.52%-0.76%7.05%-48.72%63.33%77.69%-59.54%-45.65%

Growth

Compounded Sales Growth
10 Years:8%
5 Years:7%
3 Years:18%
TTM:8%
Compounded Profit Growth
10 Years:12%
5 Years:19%
3 Years:48%
TTM:-2%
Stock Price CAGR
10 Years:26%
5 Years:47%
3 Years:53%
1 Year:51%
Return on Equity
10 Years:14%
5 Years:15%
3 Years:19%
Last Year:18%

Last Updated: July 17, 2024, 4:59 pm

Balance Sheet

Last Updated: July 10, 2024, 11:24 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital222222222222
Reserves849098105110120128136141160187210
Borrowings000000001100
Other Liabilities303535373338504541414044
Total Liabilities117127135144145160180183185204229256
Fixed Assets505557586157555456545658
CWIP332622541122
Investments151921141522363637647173
Other Assets49515566677984899085100122
Total Assets117127135144145160180183185204229256

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 15171711182433168373330
Cash from Investing Activity -11-13-12-5-13-13-22-10-2-30-17-9
Cash from Financing Activity -6-6-6-6-6-6-7-3-6-8-16-16
Net Cash Flow-1-2-20-04331-1-05

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow22.0021.0024.0023.0026.0027.0030.0019.0022.0041.0057.0056.00

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 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days737268857791686697707086
Inventory Days150156154152145153165207181165175160
Days Payable15616614415497139163162181135121112
Cash Conversion Cycle686177831241057011197100124134
Working Capital Days4849567479713544785479203
ROCE %24%19%18%16%16%16%18%10%11%23%29%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024
Promoters75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%75.00%
FIIs0.00%0.00%0.04%0.00%0.02%0.04%0.01%0.01%0.03%0.01%0.02%0.05%
DIIs3.18%6.68%6.68%6.68%6.89%6.71%6.72%6.79%6.86%6.82%6.82%6.78%
Public21.82%18.32%18.28%18.32%18.09%18.25%18.26%18.20%18.10%18.17%18.15%18.17%
No. of Shareholders6,3227,2266,9926,9287,7828,0637,9937,9497,9678,8159,2169,323

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Contra Fund116,3630.65152.09116,3632024-07-180%
LIC MF Flexi Cap Fund5,3190.746.95116,3632024-07-18-95.43%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)204.77200.45135.3463.8350.13
Diluted EPS (Rs.)204.77200.45135.3463.8350.13
Cash EPS (Rs.)247.50241.00178.38108.4897.59
Book Value[Excl.RevalReserv]/Share (Rs.)1060.55943.54809.78716.91688.38
Book Value[Incl.RevalReserv]/Share (Rs.)1060.55943.54809.78716.91688.38
Revenue From Operations / Share (Rs.)1134.151051.18894.06683.11716.16
PBDIT / Share (Rs.)313.80305.74227.69129.81115.67
PBIT / Share (Rs.)271.05265.18184.6485.1568.21
PBT / Share (Rs.)271.05265.09184.5485.0268.06
Net Profit / Share (Rs.)204.75200.44135.3363.8350.13
NP After MI And SOA / Share (Rs.)204.75200.44135.3363.8350.13
PBDIT Margin (%)27.6629.0825.4619.0016.15
PBIT Margin (%)23.8925.2220.6512.469.52
PBT Margin (%)23.8925.2120.6412.449.50
Net Profit Margin (%)18.0519.0615.139.346.99
NP After MI And SOA Margin (%)18.0519.0615.139.346.99
Return on Networth / Equity (%)19.3021.2416.718.907.28
Return on Capital Employeed (%)25.3727.8522.6011.759.78
Return On Assets (%)16.0117.5313.276.905.48
Total Debt / Equity (X)0.000.000.010.010.00
Asset Turnover Ratio (%)0.930.940.860.690.71
Current Ratio (X)4.474.403.563.002.73
Quick Ratio (X)3.623.512.862.382.09
Inventory Turnover Ratio (X)1.961.811.851.391.60
Dividend Payout Ratio (NP) (%)0.0014.9614.7739.1629.92
Dividend Payout Ratio (CP) (%)0.0012.4411.2123.0415.37
Earning Retention Ratio (%)0.0085.0485.2360.8470.08
Cash Earning Retention Ratio (%)0.0087.5688.7976.9684.63
Interest Coverage Ratio (X)0.003168.312178.81976.00794.98
Interest Coverage Ratio (Post Tax) (X)0.002078.081296.06480.91345.51
Enterprise Value (Cr.)2252.141676.35986.44618.80327.88
EV / Net Operating Revenue (X)9.937.975.524.532.29
EV / EBITDA (X)35.8827.4121.6623.8414.17
MarketCap / Net Operating Revenue (X)10.018.045.594.632.44
Retention Ratios (%)0.0085.0385.2260.8370.07
Price / BV (X)10.708.956.174.412.54
Price / Net Operating Revenue (X)10.018.045.594.632.44
EarningsYield0.010.020.020.020.02

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 16,128.79

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.

Undervalued: 6.38% compared to the current price 15162

Intrinsic Value: 21,369.40

Calculation basis:

  • Fair 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 fair value of the stock by analyzing its fundamental indicators along with EPS growth.

Undervalued: 40.94% compared to the current price 15162

Last 5 Year EPS CAGR: 32.49%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 16.67%, which is a positive sign.
  2. The company has higher reserves (130.75 cr) compared to borrowings (0.17 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (152.00 cr) and profit (25.08 cr) over the years.
  1. The stock has a high average Working Capital Days of 72.50, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 96.17, 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 Wendt India Ltd:
    1. Net Profit Margin: 18.05%
      • 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: 25.37% (Industry Average ROCE: %)
      • 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%: 19.30% (Industry Average ROE: %)
      • 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): 0.00
      • 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: 3.62
      • 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: 81.9 (Industry average Stock P/E: )
      • 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: 0.00
      • 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

Wendt India Ltd. is a Public Limited Listed company incorporated on 21/08/1980 and has its registered office in the State of Karnataka, India. Company’s Corporate Identification Number(CIN) is L85110KA1980PLC003913 and registration number is 003913. Currently Company is involved in the business activities of Manufacture of millstones, sharpening or polishing stones and natural or artificial abrasive products, including abrasive powder or grain on a base of textile material, paper, paper board or other material. Company’s Total Operating Revenue is Rs. 160.03 Cr. and Equity Capital is Rs. 2.00 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Abrasives And Grinding WheelsNo.105, 1st Floor, Cauvery Block, Bengaluru Karnataka 560047wil@wendtindia.com
http://www.wendtindia.com
Management
NamePosition Held
Mr. Shrinivas G ShirgurkarChairman(NonExe.&Ind.Director)
Mr. Ninad GadgilExecutive Director & CEO
Ms. Hima SrinivasNon Exe. & Ind. Director
Mr. Bhagya Chandra RaoNon Exe. & Ind. Director
Mr. Muthiah VenkatachalamNon Exe.Non Ind.Director
Mr. Sridharan RangarajanNon Exe.Non Ind.Director

FAQ

What is the latest fair value of Wendt India Ltd?

The latest fair value of Wendt India Ltd is ₹16128.79.

What is the Market Cap of Wendt India Ltd?

The Market Cap of Wendt India Ltd is 3,032 Cr..

What is the current Stock Price of Wendt India Ltd as on 21 July 2024?

The current stock price of Wendt India Ltd as on 21 July 2024 is 15,162.

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

In FY 2024, the High / Low of Wendt India Ltd stocks is 17,057/9,526.

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

The Stock P/E of Wendt India Ltd is 81.9.

What is the Book Value of Wendt India Ltd?

The Book Value of Wendt India Ltd is 1,061.

What is the Dividend Yield of Wendt India Ltd?

The Dividend Yield of Wendt India Ltd is 0.33 %.

What is the ROCE of Wendt India Ltd?

The ROCE of Wendt India Ltd is 24.7 %.

What is the ROE of Wendt India Ltd?

The ROE of Wendt India Ltd is 18.5 %.

What is the Face Value of Wendt India Ltd?

The Face Value of Wendt 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 Wendt 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