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Walchandnagar Industries Ltd. Stock Analysis

Small Cap
Evaluated by 482 users | BSE: 507410 | NSE: WALCHANNAG |
Engineering - Industrial Equipments
Walchandnagar Industries (WIL), incorporated in 1908, is diversified as a high-tech heavy engineering company, manufacturing critical equipment for India's diverse requirements in the field of defence, nuclear power and space programmes, and also for core sectors like cement plant machinery,...

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
 Sep'10Sep'11Sep'12Sep'13Sep'14Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 4.87%6.38%7.46%-3.59%0.36%-0.09%-3.37%3.59%6.3%-0.22%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 672958881727621514398398364298
Y-o-Y Gr. Rt.-42.4%-8%-17.6%-14.6%-17.2%-22.6%0.1%-8.6%-18.1%
Adjusted EPS (Rs.) 5.125.95.63-15.09-8.1-11.27-20.68-6.74-2.08-16.55
Y-o-Y Gr. Rt.-15.2%-4.6%-368%NANANANANANA
Book Value per Share (Rs.) 59.461.663.2152.549.3719.6795.7889.188.1370.72
Adjusted Net Profit 19.522.521.4-57.4-30.9-42.9-78.7-25.7-7.9-63
Net Op. Cash Flow (Rs. Cr.) 37.2-42.1-16-37.8-38.20.162.649.814658.6
Debt to Cash Flow from Ops 2.79-3.7-12.93-6.91-9.163,145.916.898.723.116.92
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.
Walchandnagar Industries Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -8.6%-13.6%-9.2%-18.1%
Adjusted EPS -213.9%NANANA
Book Value per Share 27.5-9.6-19.8
Share Price -6.6% -20.3% -42% -30.8%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Sep'10Sep'11Sep'12Sep'13Sep'14Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 4.655.495.3-10.37-4.48-10.45-17-7.29-2.35-20.85
Operating Profit Margin (%) 3.635.957.54-1.232.868.1912.4219.114.295.6
Net Profit Margin (%) 2.92.352.43-7.91-4.97-8.35-19.78-6.44-2.18-21.14
Debt to Equity 0.460.660.861.311.863.61.181.281.351.51
Working Capital Days 342302357429504389684710734832
Cash Conversion Cycle 145132176214250240435402367397
Entity Percentage Holding
Promoters 55.00%
Institutions 0.23%
Non-Institutions 44.74%
Pledged *98.1598.1598.1598.1598.1598.1598.1598.1598.1598.15
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Walchandnagar Industries Ltd.'s performance infers:

Walchandnagar Industries Ltd. earnings have grown by 0%, whereas share price has depreciated -20.3% 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 Walchandnagar Industries Ltd. share prices over the last 10 years. Here is what we found out:

Walchandnagar Industries Ltd. share price has depreciated -13.8% annually over the past ten years.

Walchandnagar Industries (WIL), incorporated in 1908, is diversified as a high-tech heavy engineering company, manufacturing critical equipment for India's diverse requirements in the field of defence, nuclear power and space programmes, and also for core sectors like cement plant machinery, steam generation and power projects, sugar plant machinery, industrial and marine gearboxes.

The company has also opened a representative office in Abu Dhabi to commence business in various segments

Walchandnagar Industries (WIL), incorporated in 1908, is diversified as a high-tech heavy engineering company, manufacturing critical equipment for India's diverse requirements in the field of defence, nuclear power and space programmes, and also for core sectors like cement plant machinery, steam generation and power projects, sugar plant machinery, industrial and marine gearboxes.

The company has also opened a representative office in Abu Dhabi to commence business in various segments such as cement, EPC, and oil and gas, etc. The company exports its services to countries like Zambia, Colombia, Tanzania, Kuwait are among others.

Business Divisions

EPC Projects- WIL has undertaken projects for mineral processing and bulk material handling for heavy process industry.  It has commenced projects of calcination plants for minerals, projects for extraction of metals and for separation of minerals from beach sand such as titanium.

Heavy Engineering Equipments- The company manufactures and supplies heavy engineering equipments for sectors like cement machinery, EPC, space, defence and nuclear power business, sugar machinery business, steam generators and boilers for power business and industrial and marine gear boxes.

Foundry- WIL operate a grey and ductile iron foundry at Satara Road. The company has potential to handle highly complexcastings for specialized applications in sectors such as automotive, wind energy, industrial machinery, oil & gas and other heavy duty applications such as pumps and valves, heavy duty compressors etc.

Precision Instrument Division-  This division caters to needs of various industries such as power projects, chemical plants, automotive, oil and gas, cement plants, sugar plants, etc.

The company has technological tie up with various companies such as ATEC of Austria for designing cement plants of 5000 TPD and larger capacity; Foster Wheeler North America Corporation (Foster Wheeler) of USA for addressing the power generation up to 100 MW, both in Co-Gen as well as IPP mode and Magotteaux SA of Belgium for Air Separator technology for the cement industry.

Awards

Walchandnagar Industries won Best Exports Performance Award from government of India, and various chambers of commerce and export promotion councils.

The company received Technology Absorption Award from Ministry of Defence, Government of India.

It also received Excellent Employee Relation Award from Government of Maharashtra.

Future plans

In future, Walchandnagar Industries will focus on various areas in order to increase profitability such as expansion of product line, focus on EPC and substantial augmentation of project management capability, superior capacity utilization and increase in export presence.

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

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