Wendt India (WENDT)
CyclicalFairStock Score: 21/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹7,932 |
| Market Cap | ₹1,586.4 Cr |
| P/E Ratio | 93.46 |
| ROCE | 19.81% |
| ROE | 13.49% |
| Dividend Yield | 0.25% |
| Profit Growth | 61.62% |
| Debt/Equity | 0 |
| Sales Growth | 28.56% |
| Free Cash Flow | ₹10,24,250 Cr |
| Promoter Holding | 37.5% |
| 52-Week Range | ₹5,841.5 — ₹9,897 |
| Sector | Industrial Products |
| Book Value | ₹1,269.35 |
Strengths
- Zero debt (D/E 0.00) provides financial resilience during an earnings downcycle.
- ROCE of 19.81% indicates decent capital efficiency despite margin pressure.
- Sales growth of 13.84% shows the business is still expanding at the top line.
- Positive book value of ₹1,039.40 per share offers some asset backing.
- Promoter holding of 37.50% keeps some skin in the game.
Concerns
- Profit growth collapsed by 63.75%, and latest quarterly net profit is only ₹3 Cr on ₹61 Cr sales, implying a thin ~4.9% margin.
- Valuation is rich: P/E 61.34, P/B 6.99, and PEG 4.43 leave no margin of safety.
- Piotroski F-Score of 4/9 signals weak fundamental health and possible cash-flow stress.
- The reported free cash flow of ₹10.24 lakh Cr appears inconsistent with a ₹1,371 Cr market cap, raising a data/reporting red flag.
AI Analysis
At ₹7,270.50, Wendt is no bargain. The market is paying 61.34 times earnings and 6.99 times book for a business whose profits fell 63.75% while sales grew 13.84%. That divergence makes me uneasy: revenue is rising, but profits are evaporating. The latest quarter shows just ₹3 crore net profit on ₹61 crore sales—a thin margin that cannot justify such a premium. Yes, the balance sheet is clean with zero debt, and a 19.81% ROCE suggests some underlying capital efficiency. But a Piotroski F-score of 4 out of 9 tells me financial health is deteriorating, not improving. The PEG of 4.43 reinforces that any growth is expensive. In Graham's words, price is what you pay, value is what you get. Here, the margin of safety is absent. With promoter holding at 37.50%, minority shareholders have limited comfort. This looks like a cyclical business—abrasives track industrial activity—caught in a downcycle. Good companies can still be poor investments at the wrong price. At 61 times earnings, I will wait. If earnings recover and the valuation becomes reasonable, or if I see sustained margin improvement, Wendt could become interesting. For now, the profit collapse and weak F-score outweigh the zero-debt comfort. I would rather miss the upside than pay for a recovery that has not shown up in the numbers.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer