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Last Updated on: 21 April, 2024|Author: Getaka | Social: X Twitter Profile
Stock Ticker - BSE: 590073 | NSE: WHEELS

Fundamental Analysis of Wheels India Ltd

Basic Stock Data

Last Updated: April 21, 2024, 9:13 am

Market Cap 1,414 Cr.
Current Price 579
High / Low855/498
Stock P/E32.2
Book Value 323
Dividend Yield1.20 %
ROCE10.8 %
ROE7.22 %
Face Value 10.0

Data Source: screener.in

Competitors of Wheels India Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Steel Strips Wheels Ltd 3,516 Cr. 224299/14617.0 78.00.45 %21.4 %18.6 % 1.00
Industry Average3,516.00 Cr224.0017.0078.000.45%21.40%18.60%1.00

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales708.08927.37729.10973.081,076.581,187.731,133.681,184.501,077.861,251.871,211.631,283.781,210.41
Expenses654.19854.18681.20905.841,009.521,115.711,085.751,127.351,032.951,180.231,153.191,236.031,150.24
Operating Profit53.8973.1947.9067.2467.0672.0247.9357.1544.9171.6458.4447.7560.17
OPM %7.61%7.89%6.57%6.91%6.23%6.06%4.23%4.82%4.17%5.72%4.82%3.72%4.97%
Other Income1.891.605.471.321.987.264.761.1914.735.373.966.812.37
Interest15.1014.9116.6015.7919.4319.6722.0826.1827.0629.3830.9630.4830.44
Depreciation23.0224.9823.8825.9425.5525.5917.9018.5618.4018.4020.4721.2521.34
Profit before tax17.6634.9012.8926.8324.0634.0212.7113.6014.1829.2310.972.8310.76
Tax %31.37%23.81%26.38%24.86%22.57%23.87%23.52%24.85%25.53%20.12%20.69%-12.37%18.68%
Net Profit12.1226.599.4920.1618.6325.909.7210.2210.5623.358.703.188.75
EPS in Rs5.0311.054.068.558.0511.124.224.724.9810.094.071.784.14

Last Updated: April 10, 2024, 5:22 am

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: April 6, 2024, 1:31 pm

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1,9872,1732,5633,4412,6722,4133,9664,6514,958
Expenses1,8151,9872,3643,1962,5002,2703,7124,4334,720
Operating Profit172186199245172143255218238
OPM %9%9%8%7%6%6%6%5%5%
Other Income2423882162619
Interest58484566675971103121
Depreciation6064707978861017281
Profit before tax5678106108361986954
Tax %29%24%29%30%-33%85%24%22%
Net Profit41597576470745444
EPS in Rs17.0724.5831.1531.7920.390.7631.7824.1320.08
Dividend Payout %26%26%24%25%28%132%26%29%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2016-20172017-20182018-20192019-20202020-20212022-2023
YoY Net Profit Growth (%)43.90%27.12%1.33%-38.16%-100.00%-27.03%
Change in YoY Net Profit Growth (%)0.00%-16.78%-25.79%-39.49%-61.84%72.97%

Growth

Compounded Sales Growth
10 Years:%
5 Years:13%
3 Years:20%
TTM:8%
Compounded Profit Growth
10 Years:%
5 Years:-4%
3 Years:5%
TTM:-22%
Stock Price CAGR
10 Years:8%
5 Years:-8%
3 Years:10%
1 Year:15%
Return on Equity
10 Years:%
5 Years:7%
3 Years:6%
Last Year:7%

Last Updated: April 17, 2024, 10:25 am

Balance Sheet

Last Updated: April 21, 2024, 11:40 pm

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital121212242424242424
Reserves402457575616640637710740765
Borrowings386369359495650698876785788
Other Liabilities4955327188806741,1181,3641,4601,541
Total Liabilities1,2951,3691,6632,0151,9872,4762,9743,0103,118
Fixed Assets5185265577107538839031,0001,093
CWIP17226565198114126114109
Investments171921232323242827
Other Assets7438021,0191,2161,0131,4561,9211,8681,889
Total Assets1,2951,3691,6632,0151,9872,4762,9743,0103,118

Reserves and Borrowings Chart

Cash Flow

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 14815513118418414828373
Cash from Investing Activity -69-75-135-230-242-118-120-148
Cash from Financing Activity -82-7593870-3184-211
Net Cash Flow-255-912-0-914

Free Cash Flow

MonthMar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow-214.00-183.00-160.00-250.00-478.00-555.00-621.00-567.00

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 2023
Debtor Days64736962651128265
Inventory Days847178668111910190
Days Payable1041081039799195136124
Cash Conversion Cycle4437443146364631
Working Capital Days4235403333585334
ROCE %15%15%16%8%4%11%11%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters57.53%57.53%57.53%57.53%57.53%57.53%57.53%58.10%58.73%58.73%58.31%58.31%
FIIs0.00%0.00%0.00%0.00%0.27%0.33%0.40%0.40%0.42%0.21%0.26%0.19%
DIIs23.14%21.43%20.10%20.16%19.93%19.95%19.98%20.02%20.02%20.02%18.81%18.32%
Public19.34%21.05%22.38%22.32%22.27%22.19%22.09%21.48%20.83%21.04%22.61%23.18%
No. of Shareholders13,67714,27615,72816,34616,21716,19515,78515,65815,58715,35216,24516,775

Shareholding Pattern Chart

No. of Shareholders

Wheels India Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
Nippon India ELSS Tax Saver Fund15094060.799.26
Taurus Flexi Cap Fund212830.431.4

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)24.1331.780.7620.3931.64
Diluted EPS (Rs.)24.1331.780.7620.3931.64
Cash EPS (Rs.)50.4171.4535.6652.0663.58
Book Value[Excl.RevalReserv]/Share (Rs.)323.01312.01282.63284.58275.64
Book Value[Incl.RevalReserv]/Share (Rs.)323.01312.01282.63284.58275.64
Revenue From Operations / Share (Rs.)1933.151648.581003.061110.391430.31
PBDIT / Share (Rs.)99.43110.9960.4174.80104.31
PBIT / Share (Rs.)69.4569.0224.8442.4271.63
PBT / Share (Rs.)26.7039.310.3614.7744.23
Net Profit / Share (Rs.)20.4229.490.0819.6730.89
NP After MI And SOA / Share (Rs.)24.1431.780.7520.3931.65
PBDIT Margin (%)5.146.736.026.737.29
PBIT Margin (%)3.594.182.473.825.00
PBT Margin (%)1.382.380.031.333.09
Net Profit Margin (%)1.051.780.001.772.15
NP After MI And SOA Margin (%)1.241.920.071.832.21
Return on Networth / Equity (%)7.5910.420.277.3911.89
Return on Capital Employeed (%)15.9915.525.519.9418.35
Return On Assets (%)1.922.570.072.463.77
Long Term Debt / Equity (X)0.260.340.500.420.31
Total Debt / Equity (X)1.001.160.860.760.65
Asset Turnover Ratio (%)1.551.421.051.291.84
Current Ratio (X)0.930.981.031.021.09
Quick Ratio (X)0.500.560.630.590.68
Inventory Turnover Ratio (X)4.234.293.353.985.93
Dividend Payout Ratio (NP) (%)0.003.15350.5417.7329.52
Dividend Payout Ratio (CP) (%)0.001.357.296.8514.52
Earning Retention Ratio (%)0.0096.85-250.5482.2770.48
Cash Earning Retention Ratio (%)0.0098.6592.7193.1585.48
Interest Coverage Ratio (X)2.333.742.472.713.81
Interest Coverage Ratio (Post Tax) (X)1.481.991.001.712.13
Enterprise Value (Cr.)1859.922092.561676.771273.702613.37
EV / Net Operating Revenue (X)0.390.520.690.470.75
EV / EBITDA (X)7.777.8411.547.0810.41
MarketCap / Net Operating Revenue (X)0.230.310.450.280.63
Retention Ratios (%)0.0096.84-250.5482.2670.47
Price / BV (X)1.421.681.651.133.40
Price / Net Operating Revenue (X)0.230.310.450.280.63
EarningsYield0.050.060.000.060.03

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value: 759.93

The stock is undervalued by 31.25% compared to the current price ₹579

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.

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The company has higher reserves (615.78 cr) compared to borrowings (600.67 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (2.56 cr) and profit (67.33 cr) over the years.
  1. The stock has a low average ROCE of 10.00%, which may not be favorable.
  2. The stock has a high average Working Capital Days of 41.00, which may not be favorable.
  3. The stock has a high average Cash Conversion Cycle of 39.38, 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: 1.05%
      • 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: 15.99% (Industry Average ROCE: 21.4%)
      • 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%: 7.59% (Industry Average ROE: 18.6%)
      • 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): 1.48
      • 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: 0.50
      • 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: 32.2 (Industry average Stock P/E: 17)
      • 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: 1.00
      • 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

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

Wheels India Ltd. Share Price Update

Share PriceValue
Today₹576.60
Previous Day₹573.15

FAQ

What is the latest fair value of Wheels India Ltd?

The latest fair value of Wheels India Ltd is 759.93.

What is the Market Cap of Wheels India Ltd?

The Market Cap of Wheels India Ltd is 1,414 Cr..

What is the current Stock Price of Wheels India Ltd as on 21 April 2024?

The current stock price of Wheels India Ltd as on 21 April 2024 is 579.

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 ₹855/498.

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

The Stock P/E of Wheels India Ltd is 32.2.

What is the Book Value of Wheels India Ltd?

The Book Value of Wheels India Ltd is 323.

What is the Dividend Yield of Wheels India Ltd?

The Dividend Yield of Wheels India Ltd is 1.20 %.

What is the ROCE of Wheels India Ltd?

The ROCE of Wheels India Ltd is 10.8 %.

What is the ROE of Wheels India Ltd?

The ROE of Wheels India Ltd is 7.22 %.

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