Check Before You Invest : Wonder Electricals Ltd

Snapshot

Q.1 Which industry/sub-sector does Wonder Electricals Ltd belong to?

Wonder Electricals Ltd belongs to the Consumer Durables sector, operating specifically within the Consumer Durables - Electronics segment.

Q.2 Is Wonder Electricals Ltd a good quality company?

Wonder Electricals Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Wonder Electricals Ltd undervalued or overvalued?

Wonder Electricals Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Q.4 Is Wonder Electricals Ltd a good buy now?

Wonder Electricals 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

Q.1 Revenue growth of Wonder Electricals Ltd?

Wonder Electricals Ltd revenue growth is 56.9% for FY-2025, which is above its 5-year CAGR of 24.65%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Wonder Electricals Ltd?

Wonder Electricals Ltd Return on capital employed is 18.31% for FY-2025, which is above its 5-year historical median of 16.04%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.3 Return on Asset of Wonder Electricals Ltd?

Wonder Electricals Ltd Return on Asset is 4.99%, which is above its 5-year historical median of 3.45%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Wonder Electricals Ltd?

Wonder Electricals Ltd Return on equity is 25.22% for FY-2025, which is above its 5-year historical median of 14.58%, indicating the business is making better use of its shareholders capital.

Q.5 Cash conversion cycle of Wonder Electricals Ltd?

Wonder Electricals Ltd Cash conversion cycle is 46 days, above its 5-year historical median of 37 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	2.35	1.89
ROE	25.22	14.58
ROCE	18.31	16.04
Cash Conversion Cycle	46 days	37 days

Q.6 Gross Profit margin of Wonder Electricals Ltd?

Wonder Electricals Ltd Gross profit margin which is the profit after deduction of direct costs, is 3.6% for FY-2025, which is in line with its 5-year median of 3.6%, indicating stable margins.

Q.7 Operating Profit Margin of Wonder Electricals Ltd?

Wonder Electricals Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 4.34% for FY-2025, which is in line with its 5-year median of 4.32% indicating stable margins.

Q.8 Net Profit Margin of Wonder Electricals Ltd?

Wonder Electricals Ltd Net Profit Margin is 2.13% for FY-2025, is above with its 5-year median of 1.78%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	3.6	3.6
Operating Profit Margin	4.34	4.32
Net Profit Margin	2.13	1.78

Q.9 Debt to Equity ratio of Wonder Electricals Ltd?

Wonder Electricals Ltd Debt-to-Equity ratio is 0.93, which is above with the industry average of 0.36, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Wonder Electricals Ltd?

Wonder Electricals Ltd Debt to cash flow from operations is -4.45, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Wonder Electricals Ltd?

Promoters hold 71.79% of the Wonder Electricals Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Wonder Electricals Ltd vs industry peers?

Wonder Electricals Ltd revenue CAGR is 24.65%, compared to the industry median CAGR of 6.50%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	56.9	6.5
Gross Profit Growth	60	NAN
Operating Profit Growth	56	16.2
Net Profit Growth	90	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	2.35	1.13
ROE	25.22	5.4
ROCE	18.31	10
Cash Conversion Cycle (days)	45.72	59

Valuation & price assessment

Q.1 Stock return of Wonder Electricals Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 10.6% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	10.6%	65.7%	-32.6%

Q.3 Valuation ratios of Wonder Electricals Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 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	127.5	70.26	45.77
Price to Book	16.63	7.61	3.45
Price to Sales	1.98	1.08	1.16
EV to EBITDA	46.98	26.49	19.84

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