Wardwizard Inno. (538970)

FairStock Score: 2/100 — RISKY

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

Key Financials

Strengths

• ROCE of 12.37% shows the company can generate a return above its capital cost despite weak net profitability.
• Pays a dividend yield of 1.45%, offering a small income cushion to shareholders during stress.
• Quarterly sales of ₹63 crore mean the business still has an operating base in the 2/3-wheeler segment, giving it a platform for any revival.

Concerns

• Sales growth is -27.30% and profit growth is -99.21%; latest quarterly net profit is ₹0 crore, so the earnings engine is barely running.
• Valuation is extreme: P/E 26.74, P/B 16.69 against book value ₹3.37, and market cap of ₹1,466 crore is about 5.8x annualised sales of ₹252 crore.
• Piotroski F-Score of 3/9 and FairStock Score of 2/100 signal poor financial health and high risk.
• The stock is at its 52-week high of ₹56.24 after trading at ₹5.05, indicating speculative momentum rather than fundamental value.

AI Analysis

Let me begin with the hard numbers. Wardwizard Inno trades at ₹56.24, a ₹1,466 crore market cap, while the latest quarter shows just ₹63 crore sales and ₹0 crore net profit. Sales are down 27.30%, and profit has collapsed 99.21%. A business earning almost nothing does not deserve a P/E of 26.74; on current annualized profit, the multiple is far worse. Graham said price is what you pay, value is what you get. Here, you pay for a bright future while the present is contracting sharply. The balance-sheet valuation is equally telling. Book value is ₹3.37, so the stock trades at 16.69 times book. Return on equity is merely 7.90%, far too low for that premium. ROCE of 12.37% looks reasonable for an auto company, but with zero net profit in the latest quarter, I need to see it flow into equity earnings. The Piotroski F-score is 3/9 and FairStock rates it 2/100—both are warnings of poor financial health. The 1.45% dividend yield is a small positive, but it cannot compensate for a 99% profit fall. The stock has gone from ₹5.05 to ₹56.24 in 52 weeks and sits at the top of that range. That is momentum, not margin of safety. Even if I annualize ₹63 crore quarterly sales, the market cap of ₹1,466 crore is roughly 5.8 times sales—rich for a business whose sales are shrinking 27%. Perhaps Wardwizard can turn around in the 2/3-wheeler segment. But a turnaround should be bought at a discount to value, not at a premium to book and sales. I would rather wait for proof: positive net profit, stabilised sales growth, and a valuation that gives me some protection. Until then, this is a speculation, not an investment.

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