Enkei Wheels (533477)
TurnaroundFairStock Score: 28/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹692.7 |
| Market Cap | ₹1,245.12 Cr |
| P/E Ratio | 122.07 |
| ROCE | 7.34% |
| ROE | 2.18% |
| Dividend Yield | 0% |
| Profit Growth | 365.32% |
| Debt/Equity | — |
| Sales Growth | 25.71% |
| 52-Week Range | ₹356.6 — ₹692.7 |
| Sector | Auto Components |
| Book Value | ₹143.03 |
Strengths
- Sales growth of 25.71% shows strong demand momentum.
- Piotroski F-Score of 7/9 suggests improving financial health.
- Profit growth of 365.32% signals an earnings turnaround from a low base.
- Positive ROCE of 7.34% indicates some capital productivity despite low ROE.
Concerns
- Extreme valuation: P/E of 122.07 and P/B of 4.84 with ROE of only 2.18%.
- Latest quarter net profit of ₹4 Cr on sales of ₹245 Cr means a very thin margin.
- Zero dividend yield provides no income cushion.
- FairStock Score of 28/100 (Risky) and undisclosed promoter holding add uncertainty.
AI Analysis
As a value investor, I ask three questions: Is the business understandable, does it have a durable moat, and can I buy it with a margin of safety? Enkei Wheels passes the first only. Sales growth of 25.71% is encouraging, but a 365.32% profit jump from a tiny base is exactly the kind of number that makes Mr. Market excited and Graham suspicious. The latest quarter tells the real story: ₹245 crore of sales produced just ₹4 crore of net profit. That is a very thin margin and explains the 2.18% return on equity. I am being asked to pay ₹692.70 a share, or 122 times earnings and 4.84 times book value, for a business earning barely over 2% on equity. The 7.34% ROCE is not impressive, and with no dividend, I receive no income while I wait. The Piotroski F-score of 7 is a point in favor—it suggests the company's financial position is improving. The PEG ratio of 0.62 only looks cheap if 365% profit growth continues, which is not a safe assumption. Debt/equity and promoter holding are not disclosed, so I cannot judge balance-sheet risk or insider alignment. At a 52-week high with a FairStock Score of 28/100 (Risky), this is a momentum/turnaround speculation, not a value investment. I would need stronger margins, better return on equity, and a lower price before this becomes an opportunity. For now, discipline says pass.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer