Wakefit Innovati (WAKEFIT)

FairStock Score: 21/100 — RISKY

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At ₹143.85, Wakefit has a market cap of ₹6,106 Cr. I have to begin by admitting I cannot value it with my usual tools: the P/E is 0.00, meaning trailing earnings are effectively nil. Graham taught me to be most careful where a story is required, and this is such a case. The latest quarter looks encouraging—₹421 Cr of sales and ₹32 Cr of net profit gives a healthy-looking margin—but one quarter is not a record, and profit growth of 1,000% only sounds large because the previous base was tiny. In furniture and home furnishing, I see little to indicate a durable competitive moat. The return on capital employed of -1.53% is the clearest warning: this company is not earning its cost of capital, even after that good quarter. A price-to-book ratio of 4.21 for a business with negative returns is not a margin of safety; it is a premium for hopes. Sales growth of 9.39% is decent but not spectacular. The balance sheet is manageable—debt/equity of 0.50—and the Piotroski score of 6/9 is mildly positive. However, promoter holding of only 37.39% is lower than I like, and there is no dividend. The FairStock score of 9/100 labels it risky, and I agree. Trading near the lower end of its 52-week range makes it look less frothy than at ₹224, but a falling price is not automatically cheap. I need evidence that capital employed can earn acceptable returns across multiple quarters before I would accept the business risk. This may well be a turnaround; it is not yet a proven compounder. I will watch from the sidelines until the numbers, not the story, convince me.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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