W I Plywoods (WIPL)

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

Key Financials

Strengths

• Debt/equity of 0.44 indicates a manageable balance sheet with no excessive leverage
• Latest quarter is profitable with ₹31 Cr sales and ₹1 Cr net profit
• Book value of ₹59.01 provides some tangible asset backing
• Modest dividend yield of 0.79% shows some return to shareholders
• Simple, understandable business within the plywood and laminates industry

Concerns

• Extremely expensive at P/E of 60.57 and PEG of 32.74 despite weak growth
• Profit growth is negative at -5.68% and sales growth is just 1.85%
• Low profitability with ROCE of only 8.52% and unavailable ROE
• Piotroski F-Score of 4/9 signals deteriorating financial health
• Promoter holding of 39.37% is low for an Indian small-cap and raises governance concerns

AI Analysis

I look for businesses I can understand, with a durable moat and honest numbers. WIPL makes plywood; that is simple enough. But simple does not mean good. At ₹159.87, the market cap is ₹129 Cr and the trailing P/E is 60.57. That is a rich price for a company whose sales grew only 1.85% and profits actually fell 5.68%. The PEG ratio of 32.74 tells me the market is paying an enormous multiple for almost no growth. Graham would say price is what you pay, value is what you get; here I struggle to see value. Return on capital employed is just 8.52%, and ROE is not even reported. That itself is a yellow flag. Book value is ₹59.01, so I am paying 2.71 times book for a slow-moving business in a competitive, fragmented industry. The latest quarter shows sales of ₹31 Cr and net profit of only ₹1 Cr — continued evidence of thin profitability. Debt to equity of 0.44 is manageable, so the balance sheet is not the main risk. The bigger problem is valuation, weak returns, and negligible growth. Promoter holding of 39.37% is also not reassuring; I prefer owners to have more skin in the game. Dividend yield of 0.79% offers little comfort. With a Piotroski F-Score of only 4/9, the fundamentals are deteriorating, not improving. This is not a wonderful business at a fair price; it is a mediocre business at a high price. I would keep this on my watchlist but not in my portfolio.

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