BSE:507410

Stock Analysis Report

Walchandnagar Industries

Executive Summary

Walchandnagar Industries Limited operates as a heavy engineering and project execution company worldwide.

Snowflake

Fundamentals

Adequate balance sheet and fair value.

Risks

  • Walchandnagar Industries has significant price volatility in the past 3 months.
  • Walchandnagar Industries is not covered by any analysts.

Share Price & News

How has Walchandnagar Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-5.3%

BSE:507410

-0.2%

IN Machinery

0.4%

IN Market


1 Year Return

-54.9%

BSE:507410

-27.8%

IN Machinery

-13.4%

IN Market

507410 underperformed the Machinery industry which returned -26.6% over the past year.

507410 underperformed the Market in India which returned -12.8% over the past year.


Share holder returns

507410IndustryMarket
7 Day-5.3%-0.2%0.4%
30 Day-21.0%-10.3%-3.7%
90 Day-29.3%-15.8%-7.4%
1 Year-54.9%-54.9%-26.6%-27.8%-11.7%-13.4%
3 Year-60.2%-60.2%-3.9%-7.5%18.7%12.4%
5 Year-29.6%-29.7%37.1%29.4%37.5%24.5%

Price Volatility Vs. Market

How volatile is Walchandnagar Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

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

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Walchandnagar Industries's share price is below the future cash flow value, and at a moderate discount (> 20%).

Walchandnagar Industries's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Walchandnagar Industries is loss making, we can't compare its value to the IN Machinery industry average.

Walchandnagar Industries is loss making, we can't compare the value of its earnings to the India market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Walchandnagar Industries, we can't assess if its growth is good value.


Price Based on Value of Assets

Walchandnagar Industries is good value based on assets compared to the IN Machinery industry average.


Next Steps

Future Growth

How is Walchandnagar Industries expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

13.7%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Walchandnagar Industries has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

  • Examine whether Walchandnagar Industries is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  • Walchandnagar Industries competitive advantages and company strategy can generally be found in its financial reports archived here.
  • Explore growth companies in the Capital Goods industry.

Past Performance

How has Walchandnagar Industries performed over the past 5 years?

12.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Walchandnagar Industries does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.

Unable to compare Walchandnagar Industries's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Walchandnagar Industries's 1-year growth to the IN Machinery industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Walchandnagar Industries has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

Walchandnagar Industries used its assets less efficiently than the IN Machinery industry average last year based on Return on Assets.


Return on Capital Employed

It is difficult to establish if Walchandnagar Industries improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Walchandnagar Industries's financial position?


Financial Position Analysis

Walchandnagar Industries is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Walchandnagar Industries's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Walchandnagar Industries's level of debt (135.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (43.1% vs 135.4% today).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.5x debt.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Whilst loss making Walchandnagar Industries has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making Walchandnagar Industries has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -47.6% per year.


Next Steps

Dividend

What is Walchandnagar Industries's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Walchandnagar Industries's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Walchandnagar Industries's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Walchandnagar Industries has not reported any payouts.

Unable to verify if Walchandnagar Industries's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Walchandnagar Industries has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

6.8yrs

Average management tenure


CEO

G. Pillai (68yo)

6.8yrs

Tenure

₹10,384,000

Compensation

Mr. G. K. Pillai has been Chairman of HMT Machine Tools Limited since December 2010 and serves as its Managing Director. Mr. Pillai has been Managing Director and Chief Executive Officer at Walchandnagar I ...


CEO Compensation Analysis

G.'s remuneration is higher than average for companies of similar size in India.

G.'s compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

6.8yrs

Average Tenure

62yo

Average Age

The average tenure for the Walchandnagar Industries management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

7.8yrs

Average Tenure

71yo

Average Age

The tenure for the Walchandnagar Industries board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Chirag Doshi (45yo)

    MD & Director

    • Tenure: 0.0yrs
    • Compensation: ₹11.82m
  • Sandeep Jain (62yo)

    Chief Financial Officer

    • Tenure: 0.3yrs
  • C. Janakiram

    Head of Oil & Gas Division

    • Tenure: 0.0yrs
  • V. Vaingankar

    President of Manufacturing Technology

    • Tenure: 0.0yrs
  • M. Purwat

    Senior Vice President of Finance

    • Tenure: 0.0yrs
  • P. Bhagwat

    Senior Vice President of Cement

    • Tenure: 0.0yrs
  • G. Agrawal

    Vice President of Legal & Taxation

    • Tenure: 0.0yrs
    • Compensation: ₹3.42m
  • S. K. Krishnan

    Senior Vice President of Defence

    • Tenure: 0.0yrs
  • S. Deshmukh

    Chief Information Officer

    • Tenure: 0.0yrs
  • G. Pillai (68yo)

    MD, CEO & Executive Director

    • Tenure: 6.8yrs
    • Compensation: ₹10.38m

Board Members

  • Arun Gandhi (76yo)

    Independent & Non Executive Director

    • Tenure: 6.3yrs
  • Dilip Thakkar (83yo)

    Independent Non Executive Director

    • Tenure: 16.4yrs
  • Chirag Doshi (45yo)

    MD & Director

    • Tenure: 0.0yrs
    • Compensation: ₹11.82m
  • Chakor Doshi (71yo)

    Chairman

    • Tenure: 21.6yrs
  • Bhavna Doshi (66yo)

    Non-Executive & Independent Director

    • Tenure: 5.8yrs
  • Anil Kakodkar (76yo)

    Independent & Non Executive Director

    • Tenure: 8.7yrs
  • G. Pillai (68yo)

    MD, CEO & Executive Director

    • Tenure: 6.8yrs
    • Compensation: ₹10.38m

Company Information

Walchandnagar Industries Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Walchandnagar Industries Limited
  • Ticker: 507410
  • Exchange: BSE
  • Founded: 1908
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: ₹2.414b
  • Shares outstanding: 38.07m
  • Website: https://www.walchand.com

Number of Employees


Location

  • Walchandnagar Industries Limited
  • 3, Walchand Terraces
  • Opposite Air Conditioned Market
  • Mumbai
  • Maharashtra
  • 400034
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
507410BSE (Mumbai Stock Exchange)YesEquity SharesININRSep 1996
WALCHANNAGNSEI (National Stock Exchange of India)YesEquity SharesININRSep 1996

Biography

Walchandnagar Industries Limited operates as a heavy engineering and project execution company worldwide. The company offers booster motor casings and nozzles for aerospace applications; design, engineerin ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 12:37
End of Day Share Price2019/08/20 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.