WPIL (505872)

FairStock Score: 47/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Revenue growth of 41.17% and profit growth of 73.31% show strong business momentum.
• Piotroski score of 7/9 suggests solid operational fundamentals and low near-term distress risk.
• Latest quarter sales of ₹539 Cr and net profit of ₹76 Cr demonstrate continued execution, if sustainable.
• ROE of 15.02% and ROCE of 15.56% are respectable, and PEG of 0.57 implies growth is not fully priced in if current momentum continues.

Concerns

• P/E of 32.73 and P/B of 5.32 leave no room for error or margin of safety; FairStock Score of 44/100 is mixed.
• Trailing earnings imply roughly ₹143 Cr, yet one quarter delivered ₹76 Cr—profit quality and lumpiness need scrutiny.
• Dividend yield of just 0.50% means investors get no meaningful income while waiting.
• Debt/Equity is shown as N/A, so balance-sheet leverage and financial risk are not fully transparent.

AI Analysis

At first glance, WPIL looks like the kind of compounder I would like: sales up 41.17%, profit up 73.31%, Piotroski score of 7/9, and a PEG ratio of 0.57. A business growing this fast is rare. But price is what you pay. At ₹453.15, I pay 32.73 times trailing earnings and 5.32 times book value, while the business earns 15.02% on equity and 15.56% on capital. Those are good, not spectacular, returns. For a Graham disciple, paying over five times book for a 15% ROE removes the margin of safety. The latest quarter adds another question: net profit of ₹76 Cr in one quarter against trailing earnings of about ₹143 Cr. If that quarter reflects a durable new run-rate, the stock may be cheaper than the headline P/E suggests; if it was an aberration, the multiple is far more demanding. I also note dividend yield is only 0.50%, so the investor is depending entirely on growth to be right. The FairStock Score of 44/100 echoes my mixed feeling: strong momentum, but stretched valuation and unclear balance sheet details, with debt/equity not disclosed. I cannot assess financial risk without knowing liabilities. I would not buy blindly at this price. I would wait, study the order book and cash flows, and let the next few quarters confirm whether the growth is sustainable. If earnings keep compounding at even half the recent rate, the company will grow into its valuation; if not, 32 times earnings will punish. This is a fast grower, not a cheap stalwart, and it must be bought only with eyes open.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer