Check Before You Invest : The Indian Wood Products Company Ltd

Q: Which industry/sub-sector does The Indian Wood Products Company Ltd belong to?

The Indian Wood Products Company Ltd belongs to the FMCG sector, operating specifically within the Cigarettes/Tobacco segment.

Q: Is The Indian Wood Products Company Ltd a good quality company?

The Indian Wood Products Company Ltd is a weak quality company, based on a inconsistent multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is The Indian Wood Products Company Ltd undervalued or overvalued?

The Indian Wood Products Company Ltd appears Undervalued, as its key valuation ratios are lower than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 63.46, Historic Median: 73.11. Price to Book, Current: 0.64, Historic Median: 0.61. Price to Sales, Current: 1.07, Historic Median: 1.11. EV to EBITDA, Current: 18.52, Historic Median: 21.13

Q: Is The Indian Wood Products Company Ltd a good buy now?

The Indian Wood Products Company Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of The Indian Wood Products Company Ltd?

The Indian Wood Products Company Ltd revenue growth is 17.8% for FY-2025, which is above its 5-year CAGR of 3.01%, indicating faster growth.

Q: Gross Profit margin of The Indian Wood Products Company Ltd?

The Indian Wood Products Company Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.7% for FY-2025, which is above its 5-year median of 2.8%, indicating increasing margins.

Q: Operating Profit Margin of The Indian Wood Products Company Ltd?

The Indian Wood Products Company Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 6.98% for FY-2025, which is in line with its 5-year median of 6.88% indicating stable margins.

Q: Net Profit Margin of The Indian Wood Products Company Ltd?

The Indian Wood Products Company Ltd Net Profit Margin is 1.63% for FY-2025, is above its 5-year median of 0.76%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 3.7, Historic Median: 2.8. Operating Profit Margin (%), Current: 6.98, Historic Median: 6.88. Net Profit Margin (%), Current: 1.63, Historic Median: 0.76

Q: Return on Asset of The Indian Wood Products Company Ltd?

The Indian Wood Products Company Ltd Return on Asset is 0.68%, which is above its 5-year historical median of 0.26%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of The Indian Wood Products Company Ltd?

The Indian Wood Products Company Ltd Return on capital employed is 2.99% for FY-2025, which is above its 5-year historical median of 2%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Check Before You Invest : The Indian Wood Products Company Ltd

BSE: 540954 NSE: IWP ISIN: INE586E01020

| Sector: FMCG | Industry: Cigarettes/Tobacco

Snapshot

Q.1 Which industry/sub-sector does The Indian Wood Products Company Ltd belong to?

The Indian Wood Products Company Ltd belongs to the FMCG sector, operating specifically within the Cigarettes/Tobacco segment.

Q.2 Is The Indian Wood Products Company Ltd a good quality company?

The Indian Wood Products Company Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is The Indian Wood Products Company Ltd undervalued or overvalued?

The Indian Wood Products Company Ltd appears Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	63.46	73.11
Price to Book	0.64	0.61
Price to Sales	1.07	1.11
EV to EBITDA	18.52	21.13

Q.4 Is The Indian Wood Products Company Ltd a good buy now?

The Indian Wood Products Company Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of The Indian Wood Products Company Ltd?

The Indian Wood Products Company Ltd revenue growth is 17.8% for FY-2025, which is above its 5-year CAGR of 3.01%, indicating faster growth.

Q.2 Gross Profit margin of The Indian Wood Products Company Ltd?

The Indian Wood Products Company Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.7% for FY-2025, which is above its 5-year median of 2.8%, indicating increasing margins.

Q.3 Operating Profit Margin of The Indian Wood Products Company Ltd?

The Indian Wood Products Company Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 6.98% for FY-2025, which is in line with its 5-year median of 6.88% indicating stable margins.

Q.4 Net Profit Margin of The Indian Wood Products Company Ltd?

The Indian Wood Products Company Ltd Net Profit Margin is 1.63% for FY-2025, is above its 5-year median of 0.76%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	3.7	2.8
Operating Profit Margin (%)	6.98	6.88
Net Profit Margin (%)	1.63	0.76

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of The Indian Wood Products Company Ltd?

The Indian Wood Products Company Ltd Return on Asset is 0.68%, which is above its 5-year historical median of 0.26%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of The Indian Wood Products Company Ltd?

The Indian Wood Products Company Ltd Return on capital employed is 2.99% for FY-2025, which is above its 5-year historical median of 2%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of The Indian Wood Products Company Ltd?

The Indian Wood Products Company Ltd Return on equity is 1.03% for FY-2025, which is above its 5-year historical median of 0.39%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of The Indian Wood Products Company Ltd?

The Indian Wood Products Company Ltd Cash conversion cycle is 163 days, below its 5-year historical median of 181 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.42	0.34
ROE (%)	1.03	0.39
ROCE (%)	2.99	2
Cash Conversion Cycle	163 days	181 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of The Indian Wood Products Company Ltd?

The Indian Wood Products Company Ltd Debt-to-Equity ratio is 0.21, which is above the industry average of 0.00, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of The Indian Wood Products Company Ltd?

The Indian Wood Products Company Ltd Debt to cash flow from operations is 6.32, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of The Indian Wood Products Company Ltd?

Q.1 Promoter shareholding and pledge status of The Indian Wood Products Company Ltd?

Promoters hold 71.26% of the The Indian Wood Products Company Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does The Indian Wood Products Company Ltd performance compare with that of its Peers?

Q.1 Revenue growth of The Indian Wood Products Company Ltd vs industry peers?

The Indian Wood Products Company Ltd revenue CAGR is 3.01%, compared to the industry median CAGR of 2.43%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	17.8	2.4
Gross Profit Growth (%)	33.3	-7.4
Operating Profit Growth (%)	14.3	-6.5
Net Profit Growth (%)	33.3	-0.9

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.42	0.36
ROE (%)	1.03	0.39
ROCE (%)	2.99	2
Cash Conversion Cycle (days)	163.1	77

Valuation & price assessment

Q.1 Stock return of The Indian Wood Products Company Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 1.88% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	1.9%	17.2%	4.9%

Q.2 Valuation ratios of The Indian Wood Products Company Ltd vs historical?

The current P/E ratio of 63.46 is lower than its historical median of 73.11, indicating that the stock is trading below its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	63.46	73.11	28.10
Price to Book	0.64	0.61	3.27
Price to Sales	1.07	1.11	3.14
EV to EBITDA	18.52	21.13	18.20

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Check Before You Invest : The Indian Wood Products Company Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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Check trending companies

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