Windsor Machines (WINDMACHIN)

FairStock Score: 26/100 — RISKY

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

Key Financials

Strengths

• Low debt/equity of 0.05 provides financial stability and reduces bankruptcy risk.
• Promoter holding of 46.18% aligns promoter interests with minority shareholders to a reasonable degree.
• Recent sales growth of 26.19% shows demand momentum, which could aid a turnaround if converted to profits.
• Latest quarterly net loss is small at ₹4 crore against sales of ₹136 crore, indicating the business is close to breakeven.

Concerns

• ROE of -12.90% and ROCE of 1.46% show poor capital productivity and value destruction.
• P/B of 9.23 means investors are paying far above book value for a loss-making business, leaving no margin of safety.
• Zero dividend yield means minority shareholders get no cash return while waiting for uncertain improvement.
• Piotroski F-Score of 4/9 and profit growth of -183.30% indicate weak fundamentals and deteriorating earnings quality.

AI Analysis

Windsor Machines is the kind of stock that gets attention because of a headline sales number, but the rest of the story fails the Graham test. At ₹287.51, the market capitalises the company at ₹2,213 crore, yet book value is only ₹31.14 per share – so I am paying over nine times book for a business that earned a return on equity of minus 12.90% in the latest period. When management cannot generate positive profits on existing capital, paying a huge premium to that capital is pure hope. The P/E is meaningless because the P is not backed by E; profit growth is -183.30%, and the latest quarter shows sales of ₹136 crore but a net loss of ₹4 crore. There is no dividend either, so the minority shareholder receives no cash while waiting. On the positive side, debt/equity is only 0.05, so the company is not burdened by leverage, and promoters own 46.18%, which aligns some interests. Sales growth of 26.19% is striking, but in my experience rapid revenue growth without profits can destroy value if competition, costs, or execution problems eat every rupee. ROCE of 1.46% is far below what a conservative investor can earn without taking business risk. The Piotroski F-score of 4 out of 9 reinforces the weak financial health. This is not a wonderful business at a fair price; it is a questionable business at an extraordinary price. For a value investor, the margin of safety is absent. I would need years of consistent profitability, improving margins, and a sane entry price before Windsor Machines earns a place in my portfolio. Until then, I watch and wait.

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