Wheels India Ltd - Stock Valuation and Financial Performance

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

Wheels India Share Price

599.15 14.95 2.56%
as on 28-Mar'24 16:01

DeciZen - make an informed investing decision on Wheels India

Overall Rating
Bole Toh

1. Quality

2. Valuation

Undervalued

3. Price Trend

Semi Strong

Wheels India stock performance -

mw4me loader
P/E Ratio (SA):
26.09
Market Cap:
1,459.5 Cr.
52-wk low:
434
52-wk high:
854

Is Wheels India Ltd an attractive stock to invest in?

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 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'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
ROCE % 9.9%10%10.2%11.9%10.7%12.7%8.6%3.7%8.7%8%-
Value Creation
Index
-0.3-0.3-0.3-0.2-0.2-0.1-0.4-0.7-0.4-0.4-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 1,8231,9801,9872,1732,4603,1812,4292,2123,6874,3324,608
Sales YoY Gr.-8.6%0.4%9.3%13.2%29.3%-23.7%-8.9%66.7%17.5%-
Adj EPS 12.213.316.526.225.132.121.1330.121.722.9
YoY Gr.-8.9%24.3%58.8%-4.5%28.1%-34.3%-86%920.7%-28%-
BVPS (₹) 151.1158.4169.6191.9214.2236.3248.3249.1280.6296.6309.3
Adj Net
Profit
29.43239.863.260.377.250.87.172.552.256
Cash Flow from Ops. 14683.9148155117175159138-16.4361-
Debt/CF from Ops. 2.34.62.62.43.12.63.64.4-49.42-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 10.1%12%21.3%17.5%
Adj EPS 6.6%-2.9%0.9%-28%
BVPS7.8%6.7%6.1%5.7%
Share Price 8.3% -7.9% 9.5% 29.7%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23TTM
Return on
Equity %
9.48.610.114.512.414.38.71.211.47.57.6
Op. Profit
Mgn %
8.27.78.78.97.87.46.86.36.85.15.2
Net Profit
Mgn %
1.61.622.92.52.42.10.321.21.2
Debt to
Equity
0.9110.80.70.8111.21-
Working Cap
Days
10811112211912912717119916015468
Cash Conv.
Cycle
37313532413753635149-2

Recent Performance Summary

Return on Equity has increased versus last 3 years average to 7.60%

Sales growth is growing at healthy rate in last 3 years 21.28%

Net Profit has been subdued in last 3 years 0.92%

Debt to equity has increased versus last 3 years average to 1.01

Sales growth is not so good in last 4 quarters at 8.23%

Latest Financials - Wheels India Ltd.

Standalone Consolidated
TTM EPS (₹) 22.9 19.9
TTM Sales (₹ Cr.) 4,608 4,953
BVPS (₹.) 309.3 326.1
Reserves (₹ Cr.) 731 772
P/BV 1.93 1.83
PE 26.09 30.03
From the Market
52 Week Low / High (₹) 434.00 / 853.95
All Time Low / High (₹) 26.39 / 1345.00
Market Cap (₹ Cr.) 1,460
Equity (₹ Cr.) 24.4
Face Value (₹) 10
Industry PE 46.3

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

Key Ratios of Wheels India

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Sales1,8231,9801,9872,1732,4603,1812,4292,2123,6874,332
Operating Expenses 1,6761,8301,8151,9872,2692,9482,2622,0733,4364,112
Manufacturing Costs173185188190207255180175275355
Material Costs1,2121,3271,2931,4291,6852,2351,6751,5272,6823,170
Employee Cost 192213232253260308284275352416
Other Costs 9810410211511715112396127171
Operating Profit 148150173186191233166139250220
Operating Profit Margin (%) 8.1%7.6%8.7%8.5%7.8%7.3%6.8%6.3%6.8%5.1%
Other Income 2323981041423
Interest 55595848456262536392
Depreciation 55546064677070819566
Exceptional Items 00001200000
Profit Before Tax 39405677101108451010786
Tax 101016183033-1032720
Profit After Tax 2830405872765478065
PAT Margin (%) 1.6%1.5%2.0%2.7%2.9%2.4%2.2%0.3%2.2%1.5%
Adjusted EPS (₹)11.812.416.624.329.831.522.52.833.227.1
Dividend Payout Ratio (%)35%30%27%27%25%25%25%36%25%26%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23

Equity and Liabilities

Shareholders Fund 365381408462515569597599675714
Share Capital 12121212122424242424
Reserves 353369396450503545573575651689
Minority Interest0000000000
Debt257317336273292385459518674572
Long Term Debt122163189127134168236304238184
Short Term Debt135154147146158217223214436388
Trade Payables3103573684224725854417949601,029
Others Liabilities 204189178207253361345306420453
Total Liabilities 1,1361,2441,2901,3631,5331,9001,8422,2182,7292,767

Fixed Assets

Gross Block9421,0421,1061,1641,1081,2791,3931,6031,6631,825
Accumulated Depreciation476533588638618678745821891953
Net Fixed Assets465510518526491600648783772872
CWIP 481317223642134438570
Investments 17161112161717171414
Inventories234238298279349403388512770810
Trade Receivables303368346436478558458706868816
Cash Equivalents 3759774334
Others Assets67939579154272193155217181
Total Assets 1,1361,2441,2901,3631,5331,9001,8422,2182,7292,767

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Cash Flow From Operating Activity 14684148155117175159138-16361
PBT 3940565874765187866
Adjustment 111111120135119168114139185174
Changes in Working Capital 1-55-18-18-46-455-20-252132
Tax Paid -5-12-11-20-30-23-1110-27-10
Cash Flow From Investing Activity -75-66-69-75-40-183-199-110-116-141
Capex -78-68-74-77-97-186-200-111-116-143
Net Investments 11405400000
Others 2212332212
Cash Flow From Financing Activity -70-14-82-75-74052-27122-205
Net Proceeds from Shares 87000000000
Net Proceeds from Borrowing -90368-15-233611643-20-41
Interest Paid -56-61-56-46-46-63-57-54-61-93
Dividend Paid -12-9-10-15-20-22-22-6-2-27
Others 119-241154915-9206-43
Net Cash Flow 14-253-8121-1015
PARTICULARSMar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23
Ratios
ROE (%)9.137.9910.1313.4214.6913.969.281.1312.529.39
ROCE (%)13.7213.4614.5615.3817.1317.989.685.2412.5912.16
Asset Turnover Ratio1.781.81.691.771.731.851.31.091.491.58
PAT to CFO Conversion(x)5.212.83.72.671.632.32.9419.71-0.25.55
Working Capital Days
Receivable Days55576161675976967871
Inventory Days42404645464359746367
Payable Days81921021019786112148119115

Wheels India Ltd Stock News

Wheels India Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Wheels India on 28-Mar-2024 16:01 is ₹599.1.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 28-Mar-2024 16:01 the market cap of Wheels India stood at ₹1,459.5.
The latest P/E ratio of Wheels India as of 28-Mar-2024 16:01 is 26.09.
The latest P/B ratio of Wheels India as of 28-Mar-2024 16:01 is 1.93.
The 52-week high of Wheels India is ₹854.0 and the 52-week low is ₹434.0.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Wheels India is ₹4,608 ( Cr.) .

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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