Wise Travel (WTICAB)

FairStock Score: 60/100 — STEADY

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

Key Financials

Strengths

• Sales growth of 55.79% and profit growth of 36.99% justify the Fast Grower label
• PEG of 0.22 suggests the market is pricing in very little future growth
• P/E of 10.01 gives a starting earnings yield of roughly 10%
• ROCE of 16.19% shows respectable capital efficiency
• Promoter holding of 69.25% aligns owner interests with minority shareholders

Concerns

• Road transport is a low-moat, highly competitive business with weak pricing power
• Net margin is razor-thin: ₹14 Cr profit on ₹380 Cr sales is only about 3.7%
• No dividend yield means returns depend entirely on growth and capital gains
• Stock has fallen from ₹185.50 to ₹102.70, hinting at cyclical stress or de-rating; book value, ROE, and debt/equity are not disclosed

AI Analysis

When I see a business earning ₹14 Cr on ₹380 Cr of quarterly sales, my first instinct is to ask: how much capital does this need to keep going? Wise Travel has a P/E of 10.01, leaving me an earnings yield of about 10% before growth. Sales grew 55.79% and profits 36.99%, so the PEG is an eye-catching 0.22. That is the kind of price-to-growth trade that catches my eye, but only if the growth is durable. I cannot see book value or ROE, which troubles me; I prefer to know how hard my equity is working. ROCE of 16.19% is respectable, but road transport is a brutally competitive, low-moat business. Cars and buses don't prevent rivals from undercutting you. The high promoter holding of 69.25% at least tells me owners are in the boat with me. Piotroski F-Score of 7/9 suggests the financial position is okay. But the share price has fallen from ₹185.50 to ₹102.70; Mr. Market has already lost enthusiasm. At ₹102.70 with a market cap of only ₹272 Cr, the market is not asking a lot. If the company can keep compounding earnings at anything close to recent rates, this may be a wonderful price on a decent business. But I am not prepared to overpay for a truck. I would watch margins carefully—₹14 Cr net profit on ₹380 Cr sales is a hair-thin 3.7% net margin. A small cost rise or a dip in utilisation can wipe out earnings. This is not a wide-moat stalwart; it's a fast grower in a tough industry, and the price only works if growth continues.

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