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Wabco India Ltd Stock Analysis

Mid Cap
Evaluated by 2584 users | BSE: 533023 | NSE: WABCOINDIA |
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WABCO-TVS (INDIA) is a joint venture between TVS Group and WABCO Holdings Inc. The company has pioneered the manufacture of air-assisted and air brake systems for commercial vehicles in India. With a commitment of total satisfaction to customers, their company has achieved a share of business...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Wabco India Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
Value Creation Index Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 38.02%32.33%21.75%15.55%15.64%19.74%17.71%17.97%15.4%7.37%
Value Creation Index 1.651.170.460.040.050.320.190.210.03-0.51
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 8931,0469661,1111,3481,8322,0672,5732,8541,930
Y-o-Y Gr. Rt.-17.2%-7.6%15%21.4%35.9%12.8%24.5%10.9%-32.4%
Adjusted EPS (Rs.) 66.5578.0567.5457.4866.59100.44108.81131.67134.2270.71
Y-o-Y Gr. Rt.-17.3%-13.5%-14.9%15.9%50.8%8.3%21%1.9%-47.3%
Book Value per Share (Rs.) 203.89278.95342.06398.14455.01562.95665.33800.35938.43998.83
Adjusted Net Profit 126148128109126191206250255134
Net Op. Cash Flow (Rs. Cr.) 49.215590.2143124242180311150224
Debt to Cash Flow from Ops 0.01000000000
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Wabco India Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 8.9%7.4%-2.3%-32.4%
Adjusted EPS 0.7%1.2%-13.4%-47.3%
Book Value per Share 19.31714.56.4
Share Price 16.5% 0% -12% -19.5%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 38.4232.3321.7515.5315.6119.7317.6817.8915.47.3
Operating Profit Margin (%) 22.4821.0320.114.9715.9315.6416.1815.514.3913.15
Net Profit Margin (%) 14.1414.1613.269.829.3710.49.989.718.926.95
Debt to Equity 0000000000
Working Capital Days 8999122124118112122122126160
Cash Conversion Cycle 34384849393233273057
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 93.11%
Institutions 0.34%
Non-Institutions 6.55%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Wabco India Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Wabco India Ltd is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Wabco India Ltd's performance infers:

Wabco India Ltd earnings have grown by 1.2%, whereas share price has appreciated 0% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Wabco India Ltd share prices over the last 10 years. Here is what we found out:

Wabco India Ltd share price has appreciated 18.7% annually over the past ten years.

WABCO-TVS (INDIA) is a joint venture between TVS Group and WABCO Holdings Inc. The company has pioneered the manufacture of air-assisted and air brake systems for commercial vehicles in India. With a commitment of total satisfaction to customers, their company has achieved a share of business in the OE (Original Equipment) segment greater than 85% and a market share in the after-market greater than 75%.

WABCO-TVS (INDIA) Limited is the leading provider

WABCO-TVS (INDIA) is a joint venture between TVS Group and WABCO Holdings Inc. The company has pioneered the manufacture of air-assisted and air brake systems for commercial vehicles in India. With a commitment of total satisfaction to customers, their company has achieved a share of business in the OE (Original Equipment) segment greater than 85% and a market share in the after-market greater than 75%.

WABCO-TVS (INDIA) Limited is the leading provider for air brake actuation systems for commercial vehicles.

WABCO, one of the leading providers of electronic braking, stability, suspension and transmission control systems to the global commercial vehicle industry, and TVS Group, a leading producer of automotive components, two-wheelers, electronic hardware and a major distributor of automotives and spare parts in addition to operating goods transport and financial services, in May 2007 announced their intention to transfer the brakes business of their Indian joint-venture Sundaram Clayton Ltd (SCL) to a new wholly-owned subsidiary, WABCO-TVS (INDIA) Ltd., (WABCO-TVS) through a demerger plan.

The company's Research and Development center is full-fledged and state-of-the-art to facilitate design, development, simulation and testing. A team of professional engineers powered with the best production facilities gear us up to translate design competence into excellence in manufacturing through concepts such as cellular manufacturing and operation standards.

WABCO-TVS has a solid foundation in its domestic market leadership and pioneering R&D efforts. Comprehensive TQM (Total Quality Management) practices enable the company in being a competitive world-class manufacturer in terms of quality, cost and timely delivery of products.

Cellular manufacturing gives it the flexibility to respond in tune to customer needs. Comprehensive integration of the supply chain through implementation of ERP (Enterprise-Wide Resource Planning) programme has further enhanced WABCO-TVS (INDIA) responsiveness.

WABCO-TVS has a solid foundation in its domestic market leadership and pioneering R&D efforts. Comprehensive TQM (Total Quality Management) practices enables WABCO-TVS in being a competitive world-class manufacturer in terms of quality, cost and timely delivery of products.

With intensive R&D efforts and high quality standards, its products have found global acceptance. Today Australia, Malaysia, UK, Singapore, South Asia, North America, Venezuela and the Middle East are part of its export network.

In 2014, WABCO in order to improve thesafety and efficiency of commercial vehicle opened a new ApplicationEngineering Center in Pune, India. The new center, WABCO’s second of its kindin India, allows WABCO’s engineers to work closely with global commercialvehicle manufacturers in India to jointly develop customized products andsolutions across a broad range of vehicle platforms.

Product:

The company is the leading provider for air brake actuation systems for commercial vehicles.

Clientele:

WABCO-TVS (INDIA) Limited supplies original equipment fitments for vehicles manufactured by Ashok Leyland, TATA Motors, Vehicle Factory (Jabalpur), Bharat Earthmovers, TAFE, Volvo, SUTLEJ, CATERPILLAR, Eicher Motors, Swaraj Mazda, Force Motors, Mahindra & Mahindra, Tata Cummins (Engines) and a host of other trailer manufacturers.

Awards/ Recognition

  • WABCO Rounds off 2013 in China with 15 Awards from Industry and Customers; Continued Commitment to Innovation, Customer Service and Manufacturing Excellence
  • WABCO Recognized by Investment Community; CEO Ranks Among ‘Top 3’ in Institutional Investor Magazine’s 2014 All-America Executive Team Survey for Second Year in a Row
  • In March 2014 WABCO Gains Recognition for Continued Success in China; WABCO’s President of Asia Region Named Among ‘Top 100 New Leaders’ in China’s Economy


Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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