Walchan. Inds. (WALCHANNAG)
TurnaroundFairStock Score: 11/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹224.8 |
| Market Cap | ₹1,525.09 Cr |
| P/E Ratio | 0 |
| ROCE | -8.33% |
| ROE | -21.06% |
| Dividend Yield | 0% |
| Profit Growth | 135.14% |
| Debt/Equity | 0.61 |
| Sales Growth | 83.8% |
| Promoter Holding | 31.59% |
| 52-Week Range | ₹131.15 — ₹315.8 |
| Sector | Industrial Manufacturing |
| Book Value | ₹52.48 |
Strengths
- Latest quarter turned net profit positive at ₹5 Cr on sales of ₹81 Cr, a possible inflection point.
- Sales growth of 37.04% indicates growing demand for the company's products.
- Piotroski F-Score of 6/9 shows some measurable fundamental improvements.
- Debt/equity of 0.56 is moderate and does not suggest excessive leverage.
Concerns
- Negative ROE of -21.06% and ROCE of -8.33% show current operations are destroying shareholder capital.
- Reported P/E of 0.00 and zero dividend yield mean the price has no earnings or income support.
- P/B of 4.14 is expensive relative to a book value of ₹51.31, especially with negative returns.
- Promoter holding of only 31.59% weakens insider alignment, and FairStock Score of 11/100 flags high risk.
AI Analysis
The numbers tell me this is not a business I can fall in love with. Walchan Industries earns -21.06% on equity and -8.33% on capital employed. For every rupee shareholders have put in, the company is destroying value. Book value is only ₹51.31, yet the market is paying ₹212.36, a P/B of 4.14. That is a rich price for a business with no demonstrated moat and negative returns. I don't need clever projections; I need proof of earning power. The latest quarter gives a tiny positive: sales of ₹81 Cr and net profit of ₹5 Cr. Sales grew 37.04% and profit growth of 135.14% sounds wonderful, but from such a depressed base it means little until ROE turns sustainably positive. Debt/equity of 0.56 is not alarming, but with ROCE negative, debt is a burden, not leverage. Promoter holding of only 31.59% is another concern; I like owners who eat their own cooking. Piotroski F-Score of 6/9 suggests some measurable improvements, so I am willing to watch it as a speculative turnaround, not as an investment. Dividend yield is zero; I receive nothing while waiting. The stock is down from its ₹315.80 high and still at ₹212.36; momentum alone is not a margin of safety. With FairStock Score at 11/100, my circle of competence says avoid until the returns on capital turn positive for multiple years.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer