Wonder Electric. (WEL)

FairStock Score: 24/100 — RISKY

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

Key Financials

AI Analysis

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

As a value investor, I judge a stock by the business behind it, not the ticker. Wonder Electric sells household appliances, a competitive, low-moat industry where consumer choice and dealer power reign. The numbers, however, are alarming. Sales fell 31% and net profit collapsed by nearly 89%, leaving just ₹1 Cr profit on ₹153 Cr quarterly sales. The return on equity of 12.32% and ROCE of 18.12% look respectable, but they are trailing figures from better times. Book value is only ₹6.71, yet the market trades it at ₹104.96 – a P/B of 15.64 and a P/E of 139.39. That is not a price that offers protection; it embeds expectations of a spectacular comeback. Debt/equity of 0.92 is concerning when profits are drying up, and the Piotroski F-score of 3/9 confirms a deteriorating financial position. Promoter holding at 71.79% is the one bright spot – meaningful skin in the game – but even the most patient owners cannot change price to value. This looks like a cyclical business caught in a severe downcycle, and the market is valuing it as a growth stalwart. In Graham’s words, the margin of safety is missing. I would wait on the sidelines until earnings stabilise, debt reduces, and the price reflects the risk. There is no urgency to own a business selling at 139 times current earnings while its profits are vanishing.

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