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Check Before You Invest : CWD Ltd

BSE: 543378 NSE: ISIN: INE0H8H01019
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Electronics - Components

Snapshot

Q.1 Which industry/sub-sector does CWD Ltd belong to?
CWD Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electronics - Components segment.
Q.2 Is CWD Ltd a good quality company?
CWD 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 CWD Ltd undervalued or overvalued?
CWD 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 269.52 218.39
Price to Book 6.44 13.53
Price to Sales 20.56 20.59
EV to EBITDA 81.77 73.20
Q.4 Is CWD Ltd a good buy now?
CWD 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 CWD Ltd?
CWD Ltd revenue growth is 56.8% for FY-2025, which is below its 5-year CAGR of 69.52%, indicating slower growth.

Q.2 Gross Profit margin of CWD Ltd?
CWD Ltd Gross profit margin which is the profit after deduction of direct costs, is 19.3% for FY-2025, which is below its 5-year median of 24.9%, indicating decreasing margins.

Q.3 Operating Profit Margin of CWD Ltd?
CWD Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 21.67% for FY-2025, which is below its 5-year median of 26.12% indicating decreasing margins.

Q.4 Net Profit Margin of CWD Ltd?
CWD Ltd Net Profit Margin is 7.63% for FY-2025, is below its 5-year median of 9.51%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 19.3 24.9
Operating Profit Margin (%) 21.67 26.12
Net Profit Margin (%) 7.63 9.51

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of CWD Ltd?
CWD Ltd Return on Asset is 3.95%, which is below its 5-year historical median of 6.69%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of CWD Ltd?
CWD Ltd Return on capital employed is 9.76% for FY-2025, which is below its 5-year historical median of 14.4%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Cash conversion cycle of CWD Ltd?
CWD Ltd Cash conversion cycle is 194 days, in line with its 5-year historical median of 194 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.

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

Q.8 Debt to Equity ratio of CWD Ltd?
CWD Ltd Debt-to-Equity ratio is 0.24, which is lower the industry average of 0.25, indicating lower debt levels in the industry.

Q.9 Debt to cash flow from operations of CWD Ltd?
CWD Ltd Debt to cash flow from operations is 4.9, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of CWD Ltd?

Q.1 Promoter shareholding and pledge status of CWD Ltd?
Promoters hold 58.77% of the CWD Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does CWD Ltd performance compare with that of its Peers?

Q.1 Revenue growth of CWD Ltd vs industry peers?
CWD Ltd revenue CAGR is 69.52%, compared to the industry median CAGR of 3.03%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 56.8 3
Gross Profit Growth (%) 20 16
Operating Profit Growth (%) 40 19.2
Net Profit Growth (%) 200 16.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.52 0.79
ROE (%) - 7.33
ROCE (%) 9.76 9.29
Cash Conversion Cycle (days) 194.35 121

Valuation & price assessment

Q.1 Stock return of CWD Ltd over the last decade?
Over the last 3 year(s), the stock has delivered a CAGR of -4.34% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - -4.3% 69.1%
Q.2 Valuation ratios of CWD Ltd vs historical?
The current P/E ratio of 269.52 is higher than its historical median of 218.39, indicating that the stock is trading above 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 269.52 218.39 37.32
Price to Book 6.44 13.53 3.80
Price to Sales 20.56 20.59 4.16
EV to EBITDA 81.77 73.20 22.30

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