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Wheels India Ltd. Stock Analysis

Small Cap
Evaluated by 597 users | BSE: 590073 | NSE: WHEELS |
Auto Ancillary
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...

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.
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 11.02%16.88%13.17%9.88%10%10.23%11.92%10.73%12.73%8.56%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 1,7012,0781,9241,8231,9801,9872,1732,4603,1812,429
Y-o-Y Gr. Rt.-22.2%-7.4%-5.2%8.6%0.4%9.3%13.2%29.3%-23.7%
Adjusted EPS (Rs.) 6.8115.7913.3312.2113.2916.5226.2425.0632.121.1
Y-o-Y Gr. Rt.-131.9%-15.6%-8.4%8.9%24.3%58.8%-4.5%28.1%-34.3%
Book Value per Share (Rs.) 61.0767.4972.66151.11158.38169.64191.9214.19236.33248.33
Adjusted Net Profit 24.356.347.529.43239.863.260.377.250.8
Net Op. Cash Flow (Rs. Cr.) 14110914814683.9148155117175159
Debt to Cash Flow from Ops 2.343.552.842.274.642.62.383.062.583.62
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.
Wheels India Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 4%4.2%3.8%-23.7%
Adjusted EPS 13.4%9.7%-7%-34.3%
Book Value per Share 16.99.495.1
Share Price 22.1% -7.3% -20.1% -37.7%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 11.6224.5618.879.368.5710.0714.5212.3514.258.71
Operating Profit Margin (%) 7.629.439.048.187.748.698.867.777.396.84
Net Profit Margin (%) 1.432.712.471.611.6222.912.452.432.09
Debt to Equity 1.521.611.620.911.020.950.80.70.80.96
Working Capital Days 9393105108111122119129127171
Cash Conversion Cycle 19183237313532413753
Entity Percentage Holding
Promoters 55.10%
Institutions 18.56%
Non-Institutions 26.34%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

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

Wheels India Ltd. earnings have grown by 9.7%, whereas share price has depreciated -7.3% 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 Wheels India Ltd. share prices over the last 10 years. Here is what we found out:

Wheels India Ltd. share price has depreciated 17.1% annually over the past ten years.

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

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

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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