Vidya Wires (VIDYAWIRES)
Fast GrowerFairStock Score: 45/100 — MIXED
Score breakdown: P/E: 1/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹89.45 |
| Market Cap | ₹1,902.53 Cr |
| P/E Ratio | 33.01 |
| ROCE | 24.49% |
| ROE | —% |
| Dividend Yield | 0% |
| Profit Growth | 8% |
| Debt/Equity | 0.18 |
| Sales Growth | 33.5% |
| Promoter Holding | 72.8% |
| 52-Week Range | ₹44.06 — ₹117.47 |
| Sector | Industrial Products |
| Book Value | ₹22.75 |
Strengths
- Sales growth of 29.37% and profit growth of 47.77% show strong momentum
- ROCE of 24.49% indicates efficient use of capital
- Piotroski F-Score of 7/9 suggests solid recent financial health
- Promoter holding of 72.80% aligns management with minority shareholders
- PEG of 0.64 implies growth is not excessively expensive
Concerns
- Debt/Equity of 0.99 is high and leaves limited financial cushion
- Thin net margin: ₹448 Cr sales produced only ₹16 Cr profit in the latest quarter
- P/E of 24.66 and P/B of 6.57 leave little margin of safety for a commodity-linked business
- No dividend, so returns depend entirely on continued earnings growth
AI Analysis
Let me look at Vidya Wires through a Graham lens. A company growing sales by 29.37% and profits by 47.77% certainly catches my eye, but I have to ask: what kind of business am I buying? This is an aluminium, copper and zinc products company—essentially a processing/metal business. The latest quarter shows ₹448 Cr of sales converting into only ₹16 Cr of net profit, a roughly 3.6% margin. That is a thin, high-volume, competitive business. There is no visible special product or brand here; in metals, price takers seldom enjoy wide moats. ROCE of 24.49% is genuinely strong, and a Piotroski score of 7/9 tells me the recent financials are sound. However, the balance sheet carries debt/equity of 0.99—hardly the fortress balance sheet I prefer. Book value is just ₹11.69 and I am being asked to pay 6.57 times book; the P/E of 24.66 is not cheap for a commodity-linked company. On the positive side, at 0.64 PEG, the growth seems reasonably priced if it can continue. Promoter holding of 72.80% aligns owner and management. I see no dividend, so my return must come purely from reinvestment and future earnings growth. The stock has fallen from ₹117.47 to ₹76.76, which gives some distance from euphoric pricing but doesn't automatically make it undervalued. I'd place this in my 'fast grower' file, but I would demand sustained execution and a healthier balance sheet before treating it as a serious Graham-style bargain.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer