|
Quantamental
Equity Research on WENDT INDIA LTD | Release: 01 Dec 2018 17:23:28 UTC+05:30
| Reporting Currency: INR | Trading Currency: INR | Exchange:NSE/BSE NSE
CODE:WENDT and BSE CODE:505412 |
| Last Close: |
INR 3048.45 |
| Fair Value: |
INR 1607.35 |
| Est. Price by Mar 19: |
INR 2136.3 |
| Market Capitalization (INR
Crs): |
609.69 |
| Industry: |
Industrial Machinery |
| Rating: |
STRONG SELL |
| Downside: |
-30% |
| Company Profile |
|
|
| Wendt (India) Limited is a manufacturer of super abrasives,
grinding, honing and special purpose machines and components. |
| Growth Per Share |
|
|
| Particulars |
1-Year |
3-Year |
5-Year |
|
| Revenue % |
0% |
18% |
37% |
|
| EBIT % |
9% |
9% |
-1% |
|
| Earnings % |
9% |
-3% |
2% |
|
| Book Value
% |
8% |
22% |
41% |
|
| Stock Total
Return % |
51% |
82% |
176% |
|
|
| Share holding
pattern |
| Particulars |
%age |
|
| (A) Promoter
& Promoter Group |
79.74 |
|
| (B) FII/FPI |
0.00 |
|
| (C)
DII/Insurance Companies |
0.14 |
|
| (D) Public holding < 2 lakhs of cap. |
18.55 |
|
| (E) Others |
1.57 |
|
| Grand Total |
100.00 |
|
|
| Fundamentals
(Historical and Estimated) |
| Particulars |
Mar-10 |
Mar-11 |
Mar-12 |
Mar-13 |
Mar-14 |
Mar-15 |
Mar-16 |
Mar-17 |
Mar-18 |
Mar-19 E |
Mar-20 E |
Mar-21 E |
Mar-22 E |
Mar-23 E |
|
| Price |
731 |
1225 |
1807 |
1154 |
1170 |
1753 |
1845 |
2103 |
3184 |
2136 |
2653 |
3151 |
3586 |
3986 |
|
| Return on
Equity |
20% |
28% |
26% |
15% |
13% |
14% |
10% |
11% |
11% |
14% |
15% |
16% |
17% |
17% |
|
| Price to
Earning |
14.6 |
14.5 |
18.6 |
17.9 |
20.1 |
25.9 |
34.2 |
34.9 |
48.5 |
23.8 |
23.8 |
23.8 |
23.8 |
23.8 |
|
| EVTI |
2.1 |
2.4 |
3.1 |
2.1 |
1.9 |
2.6 |
2.6 |
2.7 |
4.1 |
2.2 |
2.4 |
2.5 |
2.5 |
2.6 |
|
| EVTIFM |
14.6 |
14.5 |
18.6 |
17.9 |
20.1 |
25.9 |
34.2 |
34.9 |
48.5 |
23.8 |
23.8 |
23.8 |
23.8 |
23.8 |
|
| Price to Book
Value |
2.9 |
4.0 |
4.8 |
2.7 |
2.5 |
3.5 |
3.4 |
3.7 |
5.2 |
3.2 |
3.6 |
3.9 |
4.0 |
4.0 |
|
| Debt to
Equity |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
|
| Dividend Yield |
3% |
2% |
1% |
1% |
2% |
1% |
1% |
1% |
1% |
2% |
2% |
2% |
2% |
2% |
|
| Cash Flow to
Firm |
12% |
8% |
2% |
5% |
7% |
4% |
1% |
4% |
3% |
5% |
6% |
6% |
8% |
8% |
|
|
| Detailed Estimates |
| Title |
Mar-18 |
Mar-19 E |
Mar-20 E |
Mar-21 E |
Mar-22 E |
Mar-23 E |
|
| Sales |
146.68 |
175.72 |
204.01 |
229.30 |
249.25 |
261.71 |
|
| EBITDA |
29.37 |
39.67 |
46.05 |
51.76 |
56.27 |
59.08 |
|
| EBIT |
18.94 |
27.17 |
33.74 |
40.08 |
45.62 |
50.69 |
|
| PBT |
18.04 |
27.17 |
33.74 |
40.08 |
45.62 |
50.69 |
|
| NPAT |
13.12 |
17.94 |
22.27 |
26.46 |
30.11 |
33.46 |
|
| Price to
Earning |
48.54 |
23.82 |
23.82 |
23.82 |
23.82 |
23.82 |
|
| Price to Book
Value |
5.24 |
3.23 |
3.64 |
3.90 |
3.99 |
3.99 |
|
| Debt to
Equity |
- |
- |
- |
- |
- |
- |
|
| Return on
Equity |
0.11 |
0.14 |
0.15 |
0.16 |
0.17 |
0.17 |
|
| Enterprise Value to Total Income (EVTI) |
4.12 |
2.23 |
2.38 |
2.48 |
2.53 |
2.60 |
|
| Enterprise Value to Total Income to Firm Margin(EVTIFM) |
54.74 |
28.08 |
27.96 |
27.62 |
26.91 |
26.25 |
|
| Price or Est.
Share Prices |
3,184.42 |
2,136.30 |
2,652.50 |
3,151.20 |
3,586.45 |
3,985.50 |
|
|
| DISCOUNTED CASH
FLOW |
| Title |
Mar-19 E |
Mar-20 E |
Mar-21 E |
Mar-22 E |
Mar-23 E |
|
| PBT |
27.17 |
33.74 |
40.08 |
45.62 |
50.69 |
|
| Interest |
- |
- |
- |
- |
- |
|
| Depreciation |
12.49 |
12.32 |
11.68 |
10.65 |
8.39 |
|
| Cash Flow
Before Tax |
39.67 |
46.05 |
51.76 |
56.27 |
59.08 |
|
| Tax Rate |
33.99 |
33.99 |
33.99 |
33.99 |
33.99 |
|
| Cash Flow
After Tax |
26.18 |
30.40 |
34.17 |
37.14 |
39.00 |
|
| Terminal Cash
Flow |
- |
469.49 |
|
| Total Cash
Flow |
26.18 |
30.40 |
34.17 |
37.14 |
508.49 |
|
| Present Value of
Cash Flow |
321.47 |
|
| Debt |
- |
|
| Value of Equity |
321.47 |
|
| Fair Value Per
Share |
1,607.35 |
|
|
| Equity |
|
|
|
|
610 |
|
| Debt |
|
|
|
|
0 |
|
|
| Beta |
Take from Reuters |
|
|
1.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Risk Free Rate |
Prevailing Yield in India |
|
|
8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Market Risk Premium |
Assuming 8.82% premium
for Equity Investments |
9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest Paid |
|
|
|
|
1 |
|
| Tax Benefit |
|
|
|
|
0 |
|
| Interest Net of Tax |
|
|
|
|
1 |
|
| Debt |
|
|
|
|
0 |
|
| Cost of Debt |
|
|
|
|
0% |
|
| Cost of Equity |
|
|
|
|
17% |
|
| Debt Weight |
|
|
|
|
0% |
|
| Equity Weight |
|
|
|
|
100% |
|
| WACC |
|
|
|
|
17% |
|
|
| Cash Flow of Mar-23 E |
|
|
|
|
39.00 |
|
| Growth |
|
|
|
|
8.0% |
|
| Present Value of Terminal
Cashflow |
|
|
|
|
469.49 |
|
|
| Peer Comparision |
| # |
Name |
CMP
Rs. |
Mar
Cap Rs.Cr. |
B.V.
Rs. |
Annualized
ROE % |
ROCE
% |
Latest
EVTI |
Latest
EVTIFM |
CMP
/ BV |
P/E |
Debt
/ Eq |
Div
Yld % |
Growth
Rate R % |
SGR
% |
Ann
Total Income |
PQEIOI |
QoQ
Sales % |
Qtr
Sales Var % |
QoQ
Profits % |
Qtr
Profit Var % |
Graham's
Number Rs. |
| 1 |
Carborundum Uni. |
362.25 |
6,848 |
87.90 |
20.04 |
20.44 |
2.47 |
33.16 |
4.12 |
27.68 |
0.08 |
0.62 |
16.09 |
15.84 |
2,698 |
42.33 |
143 |
3.98 |
12.35 |
-3.92 |
7.32 |
| 2 |
Grindwell Norton |
491.15 |
5,438 |
90.99 |
20.52 |
23.19 |
2.96 |
34.37 |
5.40 |
32.21 |
- |
1.02 |
12.93 |
12.97 |
1,687 |
58.36 |
152 |
9.36 |
21.03 |
-6.79 |
12.98 |
| 3 |
Wendt India |
3,048.45 |
610 |
647.20 |
19.03 |
16.16 |
3.39 |
37.21 |
4.71 |
33.55 |
- |
0.82 |
11.78 |
12.84 |
170 |
79.74 |
161 |
-1.82 |
12.67 |
-14.34 |
73.58 |
| 4 |
Orient Abrasives |
28.75 |
344 |
17.25 |
6.78 |
10.38 |
1.80 |
22.99 |
1.67 |
20.43 |
0.31 |
0.87 |
5.59 |
6.91 |
222 |
63.57 |
199 |
-38.39 |
-26.36 |
-28.27 |
23.39 |
| 5 |
Welcast Steels |
698.00 |
45 |
528.93 |
9.38 |
7.75 |
0.17 |
20.96 |
1.32 |
48.03 |
0.15 |
0.29 |
8.61 |
7.25 |
295 |
74.85 |
97 |
14.08 |
46.97 |
454.55 |
12.96 |
| 6 |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
- |
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