NSEI:WALCHANNAG

Stock Analysis Report

Walchandnagar Industries

Executive Summary

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


Snowflake Analysis

Adequate balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: WALCHANNAG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.4%

WALCHANNAG

-5.4%

IN Machinery

-2.9%

IN Market


1 Year Return

-73.3%

WALCHANNAG

-39.6%

IN Machinery

-29.3%

IN Market

Return vs Industry: WALCHANNAG underperformed the Indian Machinery industry which returned -39.6% over the past year.

Return vs Market: WALCHANNAG underperformed the Indian Market which returned -29.3% over the past year.


Shareholder returns

WALCHANNAGIndustryMarket
7 Day-1.4%-5.4%-2.9%
30 Day-51.4%-27.6%-23.7%
90 Day-58.4%-30.6%-28.6%
1 Year-73.3%-73.3%-38.5%-39.6%-27.9%-29.3%
3 Year-83.3%-83.3%-35.2%-37.9%-15.4%-20.0%
5 Year-88.6%-88.6%-22.3%-27.0%-3.3%-8.3%

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

Valuation

Is Walchandnagar Industries undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WALCHANNAG (₹24.25) is trading below our estimate of fair value (₹185.83)

Significantly Below Fair Value: WALCHANNAG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: WALCHANNAG is unprofitable, so we can't compare its PE Ratio to the Machinery industry average.

PE vs Market: WALCHANNAG is unprofitable, so we can't compare its PE Ratio to the Indian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate WALCHANNAG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: WALCHANNAG is good value based on its PB Ratio (0.3x) compared to the IN Machinery industry average (0.8x).


Next Steps

Future Growth

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

16.7%

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

Past Performance

How has Walchandnagar Industries performed over the past 5 years?

16.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WALCHANNAG is currently unprofitable.

Growing Profit Margin: WALCHANNAG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: WALCHANNAG is unprofitable, but has reduced losses over the past 5 years at a rate of 16.1% per year.

Accelerating Growth: Unable to compare WALCHANNAG's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: WALCHANNAG is unprofitable, making it difficult to compare its past year earnings growth to the Machinery industry (-6.2%).


Return on Equity

High ROE: WALCHANNAG has a negative Return on Equity (-15.71%), as it is currently unprofitable.


Next Steps

Financial Health

How is Walchandnagar Industries's financial position?


Financial Position Analysis

Short Term Liabilities: WALCHANNAG's short term assets (₹6.7B) exceed its short term liabilities (₹5.8B).

Long Term Liabilities: WALCHANNAG's short term assets (₹6.7B) exceed its long term liabilities (₹2.7B).


Debt to Equity History and Analysis

Debt Level: WALCHANNAG's debt to equity ratio (121.2%) is considered high.

Reducing Debt: WALCHANNAG's debt to equity ratio has increased from 52.3% to 121.2% over the past 5 years.


Balance Sheet

Inventory Level: WALCHANNAG has a high level of physical assets or inventory.

Debt Coverage by Assets: WALCHANNAG's debt is covered by short term assets (assets are 1.7x 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.

Stable Cash Runway: Whilst unprofitable WALCHANNAG has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: WALCHANNAG is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 50.2% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate WALCHANNAG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate WALCHANNAG's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if WALCHANNAG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if WALCHANNAG's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: WALCHANNAG is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WALCHANNAG's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.3yrs

Average management tenure


CEO

G. Pillai (68yo)

7.33s

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

Compensation vs Market: G.'s total compensation ($USD137.77K) is above average for companies of similar size in the Indian market ($USD48.15K).

Compensation vs Earnings: G.'s compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
G. Pillai
MD, CEO & Executive Director7.33yrs₹10.38mno data
Chirag Doshi
MD & Directorno data₹11.82m0.037% 347.9k
G. Agrawal
VP of Legal & Taxationno data₹3.42mno data
Sandeep Jain
Chief Financial Officer0.83yrno datano data
V. Vaingankar
President of Manufacturing Technologyno datano datano data
S. Deshmukh
Chief Information Officerno datano datano data
C. Janakiram
Head of Oil & Gas Divisionno datano datano data
M. Purwat
Senior Vice President of Financeno datano datano data
P. Bhagwat
Senior Vice President of Cementno datano datano data
S. K. Krishnan
Senior Vice President of Defenceno datano datano data

7.3yrs

Average Tenure

62yo

Average Age

Experienced Management: WALCHANNAG's management team is seasoned and experienced (7.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
G. Pillai
MD, CEO & Executive Director7.33yrs₹10.38mno data
Chirag Doshi
MD & Directorno data₹11.82m0.037% 347.9k
Dilip Thakkar
Independent Non Executive Director17yrsno datano data
Chakor Doshi
Chairman22.17yrsno data0.15% 1.4m
Anil Kakodkar
Independent & Non Executive Director9.25yrsno datano data
Rupal Vora
Director0.50yrno datano data

9.3yrs

Average Tenure

71yo

Average Age

Experienced Board: WALCHANNAG's board of directors are considered experienced (9.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Walchandnagar Industries Limited
  • Ticker: WALCHANNAG
  • Exchange: NSEI
  • Founded: 1908
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: ₹946.045m
  • 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, engineering, manufacture, supply, project management, and supervision services of cement plant equipment and clinker grinding units; strategic articles, tactical missiles, and platform based equipment to the defense sector; high and low speed, planetary, and marine gear boxes; and mechanical precision instruments and components under the TIWIN brand name. It also provides centrifugal machines; equipment for various nuclear power plants; industrial boilers and steam generators; and equipment for onshore production facilities, refineries, and petrochemical and fertilizer plants, as well as undertakes turnkey sugar projects. In addition, the company manufactures grey and ductile iron castings; offers consulting engineering services in the areas of nuclear and thermal plants, oil and gas engineering, submarines and ships, complex projects, and special purpose machine and R&D projects; and supplies machinery and equipment for steam and power generation plants. Walchandnagar Industries Limited was founded in 1908 and is based in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 13:10
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
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.