Wheels India Ltd Stock Analysis

BSE: 590073 | NSE: WHEELS | Auto Ancillary | Small Cap

BSE Share Price Aug 18, 18:03
686.00 12.85 (1.91%)

DeciZen - Make an Informed Decision on Wheels India

Overall Rating

1. Quality

2. Valuation

Somewhat Undervalued

3. Price Trend

Semi Strong

Wheels India Price Chart

P/E Ratio (SA) :
20.55
Market Cap :
1,650.8 Cr.
52-wk low :
502
52-wk high :
872.5
Bole Toh?

1. Is Wheels India Ltd a good quality company?

Past 10 year’s financial track record analysis by Moneyworks4me indicates that Wheels India Ltd is a below average quality company.

2. Is Wheels India Ltd undervalued or overvalued?

The key valuation ratios of Wheels India Ltd's currently when compared to its past seem to suggest it is in the Somewhat Undervalued zone.

3. Is Wheels India Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Wheels India Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Wheels India:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

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.
Wheels India Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good

Value Creation

Value Creation Index Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
ROCE % 13.2%9.9%10%10.2%11.9%10.7%12.7%8.6%3.7%8.7%-
Value Creation Index -0.1-0.3-0.3-0.3-0.2-0.2-0.1-0.4-0.7NA-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 1,9241,8231,9801,9872,1732,4603,1812,4292,2123,6874,070
YoY Gr. Rt. %--5.2%8.6%0.4%9.3%13.2%29.3%-23.7%-8.9%66.7%-
Adj EPS 13.312.213.316.526.225.132.121.1330.133.4
YoY Gr. Rt. %--8.4%8.9%24.3%58.8%-4.5%28.1%-34.3%-86%920.7%-
BVPS (₹) 72.7151.1158.4169.6191.9214.2236.3248.3249.1280.6285
Adj Net Profit 47.529.43239.863.260.377.250.87.172.580
Cash Flow from Ops. 14814683.9148155117175159138-16.4-
Debt/CF from Ops. 2.82.34.62.62.43.12.63.64.4-49.4-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 7.5%11.2%5%66.7%
Adj EPS 9.5%2.8%-2.1%920.7%
BVPS 16.27.95.912.7
Share Price 12.5% -1.2% 4.1% -19.4%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22TTM
Return on Equity % 18.99.48.610.114.512.414.38.71.211.411.8
Op. Profit Mgn % 98.27.78.78.97.87.46.86.36.86.2
Net Profit Mgn % 2.51.61.622.92.52.42.10.322
Debt to Equity 1.60.9110.80.70.8111.2-
Working Cap Days 1051081111221191291271711991600
Cash Conv. Cycle 323731353241375363510

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 11.80%

Sales growth is good in last 4 quarters at 55.61%

Sales growth has been subdued in last 3 years 5.04%

Net Profit has been subdued in last 3 years -2.11%

Debt to equity has increased versus last 3 years average to 1.20

Latest Financials - Wheels India Ltd.

Standalone Consolidated
TTM EPS (₹) 33.4 31.9
TTM Sales (₹ Cr.) 4,070 4,371
BVPS (₹.) 285 308.6
Reserves (₹ Cr.) 662 719
P/BV 2.41 2.25
PE 20.55 21.70
From the Market
52 Week Low / High (₹) 502.00 / 872.50
All Time Low / High (₹) 26.39 / 1345.00
Market Cap (₹ Cr.) 1,651
Equity (₹ Cr.) 24.1
Face Value (₹) 10
Industry PE 40.4

Management X-Ray of Wheels India :

Shareholding Pattern

Promoter's Holding & Share Pledging

Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Event Update

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Analyst's Notes

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Key Ratios of Wheels India

Adj EPS (Rs.)
Sales (Cr.)
ROE (%)
ROCE (%)

News

About Wheels India Ltd

Wheels India, incorporated in 1960, is promoted by the TVS Group and was started in the early sixties to manufacture automobile wheels. Today, Wheels India has grown as a leading manufacturer of steel wheels for passenger cars, utility vehicles, trucks, buses, agricultural tractors and construction equipment in India. The company supplies 2/3rd of the domestic market requirement and exports 18% of the turnover to North America, Europe, Asia Pacific and South Africa. The company also has a technical-financial collaboration with Titan Europe.

The company's manufacturing units have received ISO 9001:2000 and ISO/TS 16949:2002 for quality management.

Wheels India has developed 'Air Suspension Systems' which are being marketed under the brand name TVS-WILRIDE. TVS-WILRIDE is the pioneer in Air Suspension Systems in India. It has been specially designed for Indian road conditions. There are approximately 1000 buses on the roads using TVS-WILRIDE Air Suspension Systems. The initial technical know-how was acquired from Dunlop, UK. TVS-WILRIDE Air Suspension Systems are currently being manufactured by Wheels India Limited, in a technical agreement with TRELLEBORG. 

Wheels India Limited engages in the design, manufacture, and sale of automobile wheels in India. It offers steel wheels for heavy vehicles, such as trucks, buses, light commercial vehicles, trailers, and tippers; light vehicles, including passenger cars, mini vans, sport utility vehicles, and multi utility vehicles; agricultural applications consisting of tractors, combines, and farm equipments; and off-road construction equipments, as well as wire wheels for contemporary and classic cars, sport utility vehicles, and multi utility vehicles.

Manufacturing locations:

Padi - The unit located in Padi, Chennai is engaged in manufacturing of wheels for trucks & buses, passenger cars and utility vehicles, off-road construction equipment, agricultural tractors and farm equipment, tracked vehicles and wire wheels. This unit stretches across 29 acres of land.

Pune - This unit located at Pune is spread across 15 acres of land manufacturing wheels for wheels for passenger cars and utility vehicles, agricultural tractors and farm equipment and truck (LCV) wheels.

Rampur - The unit located at Rampur, Uttar Pradesh is spread across 14 acres of land. The company manufactures wheels for agricultural tractors and farm equipment.

Bawal - The unit located Bawal, Haryana manufactures wheels for passenger cars and utility vehicles, agriculture tractors and farms equipment.

Wheel India is planning to set up a plant in Maharashtra spread across in 30 acres of land. The plant will undertake manufacturing of steel structural parts for power plant projects. The plant is anticipated to start its production in second quarter of 2009-10.

Products:

• Wheels for Heavy Vehicles (Trucks, Buses, Light Commercial Vehicles, Trailers, Tippers etc.)  

• Wheels for Light Vehicles (Passenger Cars, Mini Vans, SUVs & MUVs)  

• Wheels for Agricultural Applications (Tractors, Combines, Farm Equipments etc.) 

• Wheels for Off-Road Construction Equipments  

• Wire Wheels (For Contemporary & Classic Cars, MUVs & SUVs)  

• Air Suspension

Customers:

Export Customers: â€¢ CATERPILLAR - various plants  • KOMATSU - various plants  • VOLVO  • JCB  • TCM  • Shin Caterpillar Mitsubishi • Kawasaki Heavy Industries  • Hyundai Heavy Industries  • Mitsubishi Heavy Industries  • DOOSAN INFRACORE  • Case New Holland  • BELL Equipment  • KATO 

Domestic Customers: â€¢ Caterpillar India • Komatsu India Private India • JCB India  • Barath Earth Movers • Telecon  • Hindustan Motors  • Ingersoll Rand  • L&T  • Escorts  • TIL  • PL Haulwel Trailers  • INDITAL  • L&T CASE Equipment

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