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Wheels India

NSEI:WHEELS
Snowflake Description

Adequate balance sheet second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
WHEELS
NSEI
₹18B
Market Cap
  1. Home
  2. IN
  3. Automobiles
Company description

Wheels India Limited manufactures and sells automotive components in India. The last earnings update was 50 days ago. More info.


Add to Portfolio Compare Print
  • Wheels India has significant price volatility in the past 3 months.
WHEELS Share Price and Events
7 Day Returns
-6.6%
NSEI:WHEELS
0.6%
IN Auto Components
1.3%
IN Market
1 Year Returns
-36.2%
NSEI:WHEELS
-26.2%
IN Auto Components
-1.5%
IN Market
WHEELS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Wheels India (WHEELS) -6.6% -8.9% -17.3% -36.2% 23.1% 92.3%
IN Auto Components 0.6% -3.5% -14.5% -26.2% 2.8% 49.6%
IN Market 1.3% -0.8% -3.7% -1.5% 22.6% 33.9%
1 Year Return vs Industry and Market
  • WHEELS underperformed the Auto Components industry which returned -26.2% over the past year.
  • WHEELS underperformed the Market in India which returned -1.5% over the past year.
Price Volatility
WHEELS
Industry
5yr Volatility vs Market

WHEELS Value

 Is Wheels India undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Wheels India to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Wheels India.

NSEI:WHEELS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 1 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 19.1%
Perpetual Growth Rate 10-Year IN Government Bond Rate 7.6%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:WHEELS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 7.6%
Equity Risk Premium S&P Global 8.6%
Auto Components Unlevered Beta Simply Wall St/ S&P Global 1.27
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.265 (1 + (1- 35%) (29%))
1.337
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.34
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 7.55% + (1.337 * 8.6%)
19.05%

Discounted Cash Flow Calculation for NSEI:WHEELS using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Wheels India is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NSEI:WHEELS DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 19.05%)
2020 168.64 Est @ 8.57% 141.65
2021 182.57 Est @ 8.26% 128.81
2022 197.26 Est @ 8.05% 116.91
2023 212.85 Est @ 7.9% 105.95
2024 229.44 Est @ 7.79% 95.93
2025 247.15 Est @ 7.72% 86.80
2026 266.11 Est @ 7.67% 78.50
2027 286.42 Est @ 7.63% 70.97
2028 308.21 Est @ 7.61% 64.15
2029 331.61 Est @ 7.59% 57.98
Present value of next 10 years cash flows ₹947.67
NSEI:WHEELS DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= ₹331.61 × (1 + 7.55%) ÷ (19.05% – 7.55%)
₹3,100.68
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹3,100.68 ÷ (1 + 19.05%)10
₹542.10
NSEI:WHEELS Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹947.67 + ₹542.10
₹1,489.77
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹1,489.77 / 24.06
₹61.91
NSEI:WHEELS Discount to Share Price
Calculation Result
Value per share (INR) From above. ₹61.91
Current discount Discount to share price of ₹733.65
= -1 x (₹733.65 - ₹61.91) / ₹61.91
-1085.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Wheels India is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Wheels India's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Wheels India's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:WHEELS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in INR ₹31.64
NSEI:WHEELS Share Price ** NSEI (2019-07-18) in INR ₹733.65
India Auto Components Industry PE Ratio Median Figure of 102 Publicly-Listed Auto Components Companies 14.01x
India Market PE Ratio Median Figure of 2,835 Publicly-Listed Companies 14.68x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Wheels India.

NSEI:WHEELS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NSEI:WHEELS Share Price ÷ EPS (both in INR)

= 733.65 ÷ 31.64

23.19x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Wheels India is overvalued based on earnings compared to the IN Auto Components industry average.
  • Wheels India is overvalued based on earnings compared to the India market.
Price based on expected Growth
Does Wheels India's expected growth come at a high price?
Raw Data
NSEI:WHEELS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 23.19x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts
15.6%per year
India Auto Components Industry PEG Ratio Median Figure of 33 Publicly-Listed Auto Components Companies 1.33x
India Market PEG Ratio Median Figure of 537 Publicly-Listed Companies 1.3x

*Line of best fit is calculated by linear regression .

NSEI:WHEELS PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 23.19x ÷ 15.6%

1.49x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Wheels India is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Wheels India's assets?
Raw Data
NSEI:WHEELS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in INR ₹264.81
NSEI:WHEELS Share Price * NSEI (2019-07-18) in INR ₹733.65
India Auto Components Industry PB Ratio Median Figure of 112 Publicly-Listed Auto Components Companies 1.52x
India Market PB Ratio Median Figure of 3,670 Publicly-Listed Companies 0.95x
NSEI:WHEELS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NSEI:WHEELS Share Price ÷ Book Value per Share (both in INR)

= 733.65 ÷ 264.81

2.77x

* Primary Listing of Wheels India.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Wheels India is overvalued based on assets compared to the IN Auto Components industry average.
X
Value checks
We assess Wheels India's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Auto Components industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Auto Components industry average (and greater than 0)? (1 check)
  5. Wheels India has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

WHEELS Future Performance

 How is Wheels India expected to perform in the next 1 to 3 years based on estimates from 1 analyst?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
15.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Wheels India expected to grow at an attractive rate?
  • Wheels India's earnings growth is expected to exceed the low risk savings rate of 7.6%.
Growth vs Market Checks
  • Wheels India's earnings growth is positive but not above the India market average.
  • Wheels India's revenue growth is positive but not above the India market average.
Annual Growth Rates Comparison
Raw Data
NSEI:WHEELS Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:WHEELS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 1 Analysts 15.6%
NSEI:WHEELS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 1 Analysts 9.7%
India Auto Components Industry Earnings Growth Rate Market Cap Weighted Average 13.3%
India Auto Components Industry Revenue Growth Rate Market Cap Weighted Average 9%
India Market Earnings Growth Rate Market Cap Weighted Average 17%
India Market Revenue Growth Rate Market Cap Weighted Average 9.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:WHEELS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:WHEELS Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-03-31 41,697 1,045 1
2020-03-31 36,900 877 1
NSEI:WHEELS Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2019-03-31 34,413 765
2018-03-31 25,626 1,311 751
2017-03-31 21,729 1,552 592

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Wheels India's earnings are expected to grow by 15.6% yearly, however this is not considered high growth (20% yearly).
  • Wheels India's revenue is expected to grow by 9.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:WHEELS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below

All data from Wheels India Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:WHEELS Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-03-31 43.43 43.43 43.43 1.00
2020-03-31 36.45 36.45 36.45 1.00
NSEI:WHEELS Past Financials Data
Date (Data in INR Millions) EPS *
2019-03-31 31.64
2018-03-31 31.20
2017-03-31 24.62

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Wheels India is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Wheels India's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Wheels India has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

WHEELS Past Performance

  How has Wheels India performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Wheels India's growth in the last year to its industry (Auto Components).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Wheels India has delivered over 20% year on year earnings growth in the past 5 years.
  • Wheels India's 1-year earnings growth is less than its 5-year average (1.9% vs 27.7%)
  • Wheels India's earnings growth has not exceeded the IN Auto Components industry average in the past year (1.9% vs 4.8%).
Earnings and Revenue History
Wheels India's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Wheels India Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:WHEELS Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 34,413.30 765.10 3,392.00
2018-03-31 25,625.90 750.80 2,858.10
2017-03-31 21,728.70 592.40 2,604.20
2016-03-31 19,872.40 411.30 2,390.20
2015-12-31 19,790.00 297.80 2,680.80
2015-09-30 19,857.90 294.60 2,678.70
2015-06-30 19,826.30 297.00 2,614.60
2015-03-31 19,798.70 297.40 2,595.50
2014-12-31 19,658.42 317.60 2,440.19
2014-09-30 19,122.52 302.20 2,382.69
2014-06-30 18,621.20 294.40 1,953.60
2014-03-31 18,231.50 284.10 2,307.50
2013-12-31 18,053.12 249.76 2,242.98
2013-09-30 18,238.90 298.61 2,218.61
2013-06-30 18,550.22 297.26 2,176.48
2013-03-31 19,238.44 318.76 2,146.33
2012-12-31 20,354.34 335.80 2,124.05
2012-09-30 21,277.74 337.10 2,095.25

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Wheels India has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Wheels India used its assets less efficiently than the IN Auto Components industry average last year based on Return on Assets.
  • Wheels India has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Wheels India's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Auto Components industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Wheels India has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

WHEELS Health

 How is Wheels India's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Wheels India's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Wheels India is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Wheels India's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Wheels India's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Wheels India Company Filings, last reported 3 months ago.

NSEI:WHEELS Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 6,631.90 5,261.00 189.70
2018-03-31 6,099.10 3,585.70 93.90
2017-03-31 4,686.90 3,690.70 91.20
2016-03-31 4,141.80 3,861.30 49.60
2015-12-31 3,983.00 3,998.90 85.20
2015-09-30 3,983.00 3,998.90 85.20
2015-06-30 3,810.60 3,892.30 72.60
2015-03-31 3,810.60 3,892.30 72.60
2014-12-31 3,793.90 2,700.40 106.60
2014-09-30 3,793.90 2,700.40 106.60
2014-06-30 3,635.90 2,574.60 32.90
2014-03-31 3,635.80 3,316.60 32.90
2013-12-31 2,711.55 3,600.42 42.31
2013-09-30 2,711.55 3,600.42 42.31
2013-06-30 2,588.52 4,195.70 21.70
2013-03-31 2,588.52 4,195.70 21.70
2012-12-31 2,579.60 2,884.30 44.20
2012-09-30 2,579.60 2,884.30 44.20
  • Wheels India's level of debt (79.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (91% vs 79.3% today).
  • Debt is well covered by operating cash flow (24.9%, greater than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.5x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Wheels India's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Wheels India has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

WHEELS Dividends

 What is Wheels India's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.09%
Current annual income from Wheels India dividends.
If you bought ₹2,000 of Wheels India shares you are expected to receive ₹22 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Wheels India's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.56%).
  • Wheels India's dividend is below the markets top 25% of dividend payers in India (2.21%).
Upcoming dividend payment

Purchase Wheels India before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:WHEELS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 1 Analyst Estimates (S&P Global) See Below
India Auto Components Industry Average Dividend Yield Market Cap Weighted Average of 81 Stocks 1%
India Market Average Dividend Yield Market Cap Weighted Average of 1446 Stocks 1.4%
India Minimum Threshold Dividend Yield 10th Percentile 0.3%
India Bottom 25% Dividend Yield 25th Percentile 0.6%
India Top 25% Dividend Yield 75th Percentile 2.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:WHEELS Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2021-03-31
2020-03-31
NSEI:WHEELS Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2019-05-29 8.000 0.986
2019-02-06 7.750 0.898
2018-06-22 7.500 0.746
2018-05-29 7.500 0.710
2018-02-06 7.000 0.652
2017-05-29 6.500 0.824
2017-02-09 5.250 0.812
2016-05-25 4.500 0.744
2016-02-11 4.000 0.878
2015-05-18 3.750 0.656
2015-02-03 3.600 0.544
2014-08-06 4.200 0.898
2014-05-16 4.200 1.232
2014-02-03 4.000 1.377
2013-12-26 4.000 0.985
2013-05-27 4.050 1.126
2012-07-12 6.000 1.663
2012-05-30 6.000 1.719
2012-02-09 4.000 1.530
2011-05-30 3.250 2.379
2010-08-20 2.250 1.781
2009-06-25 2.750 2.525
2009-06-01 2.750 3.195

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Wheels India's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (4x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Wheels India's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.3%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Wheels India afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Wheels India has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

WHEELS Management

 What is the CEO of Wheels India's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Srivats Ram
COMPENSATION ₹30,406,000
AGE 49
TENURE AS CEO 6.2 years
CEO Bio

Mr. Srivats Ram has been Managing Director of Wheels India Limited since May 1, 2013. Mr. Ram has over 3 decades of work experience in Vehicle and Component Industry. He has been a Director of Sundaram Finance Holdings Limited since 2018. He serves as the President of The Automotive Component Manufacturers Association of India (ACMA).He served as Joint Managing Director at Wheels India Limited since May 1, 2005. Mr. Ram served as the Chairman of Axles India Ltd. He has been Executive Director of Wheels India Ltd since October 1, 2000. He serves as a Director of T V Sundram Iyengar and Sons Limited, Sundaram Industries Ltd.; Southern Roadways Ltd.; TVS Automotive Europe Ltd.; Fiat Sundaram Auto Finance Ltd., and Irizar TVS Ltd. He has been a Director of Axles India Ltd. since June 2006. He served as Non Executive Director of Sundaram Finance Ltd. His qualifications includes B.E. in Mechanical and M.S. in Production Engineering. Mr. Ram holds a bachelors degree in arts (Economics) from the University of Madras and masters degree in business administration from Case Western Reserve University, USA.

CEO Compensation
  • Srivats's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Srivats's remuneration is higher than average for companies of similar size in India.
Management Team Tenure

Average tenure of the Wheels India management team in years:

2.3
Average Tenure
  • The tenure for the Wheels India management team is about average.
Management Team

Srivats Ram

TITLE
MD & Executive Director
COMPENSATION
₹30M
AGE
49
TENURE
6.2 yrs

R. Raghunathan

TITLE
Chief Financial Officer
COMPENSATION
₹6M
TENURE
2.3 yrs

K. Lakshmi

TITLE
Compliance Officer & Company Secretary
COMPENSATION
₹1M
TENURE
1.7 yrs
Board of Directors Tenure

Average tenure and age of the Wheels India board of directors in years:

6.5
Average Tenure
57.5
Average Age
  • The tenure for the Wheels India board of directors is about average.
Board of Directors

S. Ram

TITLE
Non-Executive Chairman
COMPENSATION
₹10M
AGE
79
TENURE
9.2 yrs

Srivats Ram

TITLE
MD & Executive Director
COMPENSATION
₹30M
AGE
49
TENURE
18.8 yrs

Santhanam Viji

TITLE
Non-Executive & Non-Independent Director
COMPENSATION
₹255K
AGE
73
TENURE
33 yrs

Sreenivasan Prasad

TITLE
Independent Non Executive Director
COMPENSATION
₹295K
AGE
71
TENURE
15.3 yrs

Aroon Raman

TITLE
Independent Non Executive Director
COMPENSATION
₹245K
AGE
59
TENURE
8.3 yrs

B. Santhanam

TITLE
Independent Director
COMPENSATION
₹90K
AGE
62
TENURE
4.8 yrs

Christopher Michael Akers

TITLE
Non Executive Director
COMPENSATION
₹40K
AGE
51
TENURE
4.8 yrs

Paul Reitz

TITLE
Additional Non Executive Director
COMPENSATION
₹20K
AGE
47
TENURE
4.3 yrs

Raghuttama Ragavendra

TITLE
Additional Director
AGE
56
TENURE
0.7 yrs

Sumithra Gomatam

TITLE
Additional Director
AGE
51
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
X
Management checks
We assess Wheels India's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Wheels India has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

WHEELS News

Simply Wall St News

How Wheels India Limited's (NSE:WHEELS) Earnings Growth Stacks Up Against The Industry

After looking at Wheels India Limited's (NSE:WHEELS) latest earnings announcement (31 March 2019), I found it useful to revisit the company's performance in the past couple of years and assess this against the most recent figures. … See our latest analysis for Wheels India How Did WHEELS's Recent Performance Stack Up Against Its Past? … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 28%, indicating the rate at which WHEELS is growing has slowed down.

Simply Wall St -

Investors Who Bought Wheels India (NSE:WHEELS) Shares Five Years Ago Are Now Up 175%

It hasn't been the best quarter for Wheels India Limited (NSE:WHEELS) shareholders, since the share price has fallen 14% in that time. … During five years of share price growth, Wheels India achieved compound earnings per share (EPS) growth of 19% per year. … We note that for Wheels India the TSR over the last 5 years was 185%, which is better than the share price return mentioned above.

Simply Wall St -

Should Wheels India Limited (NSE:WHEELS) Be Part Of Your Dividend Portfolio?

Could Wheels India Limited (NSE:WHEELS) be an attractive dividend share to own for the long haul? … Payout ratios Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. So we need to be form a view on if a company's dividend is sustainable, relative to its net profit after tax. In the last year, Wheels India paid out 24% of its profit as dividends. With a low payout ratio, it looks like the dividend is comprehensively covered by earnings. Another important check we do is to see if the free cash flow generated is sufficient to pay the dividend. Last year, Wheels India paid a dividend while reporting negative free cash flow. While there may be an explanation, we think this behaviour is generally not sustainable. It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously. Is Wheels India's Balance Sheet Risky? As Wheels India has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. … Dividend Growth Potential With a relatively unstable dividend, it's even more important to evaluate if earnings per share (EPS) are growing - it's not worth taking the risk on a dividend getting cut, unless you might be rewarded with larger dividends in future.

Simply Wall St -

Is Wheels India Limited (NSE:WHEELS) Potentially Undervalued?

Wheels India Limited (NSE:WHEELS), which is in the auto components business, and is based in India,. … As a small cap stock, hardly covered by any analysts, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value? … Today I will analyse the most recent data on Wheels India’s outlook and valuation to see if the opportunity still exists

Simply Wall St -

Does The Wheels India Limited (NSE:WHEELS) Share Price Fall With The Market?

Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.

Simply Wall St -

Is Wheels India Limited (NSE:WHEELS) Investing Effectively In Its Business?

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Understanding Return On Capital Employed (ROCE). … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Can You Imagine How Chuffed Wheels India's Shareholders Feel About Its 172% Share Price Gain?

Wheels India Limited (NSE:WHEELS) shareholders might be concerned after seeing the share price drop 23% in the last quarter. … In fact, the share price is 172% higher today. … During five years of share price growth, Wheels India achieved compound earnings per share (EPS) growth of 15% per year.

Simply Wall St -

What You Must Know About Wheels India Limited's (NSE:WHEELS) Financial Strength

While small-cap stocks, such as Wheels India Limited (NSE:WHEELS) with its market cap of ₹21b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … Evaluating financial health as part of your investment thesis is. … Here are few basic financial health checks you should consider before taking the plunge.

Simply Wall St -

What Does Wheels India Limited's (NSE:WHEELS) Share Price Indicate?

Wheels India Limited (NSE:WHEELS), which is in the auto components business, and is based in India,. … A question to answer is whether Wheels India's current trading price of ₹891.75 reflective of the actual value of the? … Let’s take a look at Wheels India’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

With A Return On Equity Of 12%, Has Wheels India Limited's (NSE:WHEELS) Management Done Well?

By way of learning-by-doing, we'll look at ROE to gain a better understanding of Wheels India Limited (NSE:WHEELS). … One way to conceptualize this, is that for each ₹1 of shareholders' equity it has, the company made ₹0.12 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

WHEELS Company Info

Description

Wheels India Limited manufactures and sells automotive components in India. The company offers steel wheels for use in heavy and light vehicles, as well as for agricultural applications; off road construction wheels, wire wheels, and forged aluminum wheels; air suspension systems for wide range of vehicle applications; and windmill components, and fabricated and machined components. It also provides parts and accessories for machinery/equipment that are used in construction and mining industries. The company also exports its products. Wheels India Limited was incorporated in 1960 and is based in Chennai, India.

Details
Name: Wheels India Limited
WHEELS
Exchange: NSEI
Founded: 1960
₹18,143,473,504
24,064,558
Website: http://www.wheelsindia.com
Address: Wheels India Limited
Padi,
Chennai,
Tamil Nadu, 600050,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NSEI WHEELS Equity Shares National Stock Exchange of India IN INR 17. Apr 2000
BSE 590073 Equity Shares Mumbai Stock Exchange IN INR 17. Apr 2000
Number of employees
Current staff
Staff numbers
0
Wheels India employees.
Industry
Auto Parts and Equipment
Automobiles
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/18 12:36
End of day share price update: 2019/07/18 00:00
Last estimates confirmation: 2019/07/02
Last earnings filing: 2019/05/29
Last earnings reported: 2019/03/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.