Walchandnagar Industries Limited (WALCHANNAG) AI Stock Analysis

• Market Cap: ₹12.77B
• Dividend Yield: N/A
• Average Volume (3M): 25.39K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.13
• Revenue Growth: -27.50%
• EPS Growth: -109.77%
• Country: IN
• Employees: 1,508
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.69
• Shares Outstanding: 67,842,060
• 10 Day Avg. Volume: 28,068
• 30 Day Avg. Volume: 25,394
• PEG Ratio: -0.18
• Price to Book (P/B): 2.55
• Price to Sales (P/S): 3.22
• P/FCF Ratio: -49.93
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: ₹192.00 ▲(9.97% Upside)

The score is primarily held back by weak financial performance (persistent losses, contracting revenue, and negative free cash flow) and limited valuation support (negative P/E). Technicals provide some offset with strength versus shorter moving averages, though mixed momentum and being below the 200-day average temper the outlook.

Positive Factors

Diversified engineered-to-order portfolio

Serving multiple heavy industries and defense creates durable demand corridors and higher entry barriers. Engineered-to-order work and turnkey services raise switching costs, support higher technical margins and provide opportunities for recurring aftermarket spares and services over a multi-month horizon.

Improved cash reserves

Stronger cash buffers improve resilience through long project cycles typical in heavy engineering, enabling bond/performance guarantee funding, timely supplier payments and bid participation. This liquidity reduction in short-term funding risk supports sustained project execution and order fulfilment.

Operating cash generation despite losses

Positive operating cash conversion indicates the business can collect milestone billings and manage working capital effectively, providing a durable internal funding source for operations. This reduces near-term reliance on external financing even as accounting profits remain negative.

Negative Factors

Persistent net losses and weak EPS

Ongoing net losses and sharply negative EPS growth undermine retained capital and investor confidence, limiting the firm's ability to self-finance growth or absorb shocks. Prolonged losses can erode equity, constrain R&D/capex and raise the likelihood of financing dilution or restructuring.

Contracting revenue trend

A steep decline in revenue reduces scale benefits in a fixed-cost engineering business, weakening margin sustainability and aftermarket revenue potential. If order intake does not recover, reduced throughput will pressure utilization, supplier terms and the firm's ability to compete for large project awards.

High leverage and negative free cash flow

Elevated leverage plus negative FCF raises refinancing and liquidity risks for capital-intensive project execution. Heavy engineering requires working capital and guarantees; constrained cash flow amplifies dependence on debt or equity infusions, increasing financing costs and execution risk over the medium term.

Walchandnagar Industries Limited Business Overview & Revenue Model

Company Description

Walchandnagar Industries Limited (WALCHANNAG) is a diversified engineering company based in India, primarily engaged in manufacturing and supplying a wide range of products and services across various sectors such as aerospace, defense, industrial machinery, and equipment for the sugar and cement industries. The company is known for its expertise in precision engineering and has established a strong presence in both domestic and international markets, contributing to sectors that are vital for infrastructure and industrial development.

How the Company Makes Money

WALCHANNAG generates revenue through multiple streams, primarily by manufacturing and selling specialized engineering products such as sugar and cement machinery, defense equipment, and aerospace components. The company also engages in project engineering and execution, which includes providing end-to-end solutions for industrial projects. Key revenue streams include direct sales to end-users, contracts with government and defense agencies, and partnerships with leading firms in various industries. Additionally, WALCHANNAG benefits from long-term contracts and repeat business from established clients, enhancing its revenue stability. The company’s strategic collaborations and alliances with international firms further bolster its market position and revenue potential.

Walchandnagar Industries Limited Financial Statement Overview

Summary

Financials are mixed: revenue is declining and net income remains consistently negative, while margins show slight improvement. Balance sheet stability is moderate with improved cash reserves, but leverage is high and ROE is negative. Cash flow is volatile with free cash flow turning negative, despite operating cash generation.

Income Statement

The income statement shows mixed performance with a decline in total revenue from previous years, yet a slight improvement in gross profit margin. The net income has been consistently negative, and the net profit margin remains poor. The revenue growth rate also indicates a contraction, signaling challenges in driving top-line growth. The EBIT margin has improved, but EBITDA margin is negative, highlighting issues with operational efficiency.

Balance Sheet

The balance sheet reflects moderate stability with a decent equity ratio, but the high debt-to-equity ratio suggests potential financial risk due to leverage. The return on equity is negative due to persistent net losses. However, the company has increased its cash reserves, which enhances liquidity and provides a buffer against financial uncertainties.

Cash Flow

Cash flow analysis indicates volatility with a decline in free cash flow compared to prior years. The operating cash flow to net income ratio shows positive cash generation capabilities despite negative net income, but free cash flow has turned negative, suggesting cash management challenges. The company needs to focus on improving cash flow efficiency and reducing negative cash flow impacts from operations.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.32B	2.95B	3.02B	3.22B	2.96B	3.26B
Gross Profit	1.03B	1.45B	1.30B	1.14B	1.36B	1.47B
EBITDA	-408.10M	-356.20M	225.20M	933.00M	423.60M	449.10M
Net Income	-946.70M	-860.30M	-418.30M	195.80M	-380.70M	-572.40M
Balance Sheet
Total Assets	0.00	8.72B	8.76B	8.28B	9.34B	9.58B
Cash, Cash Equivalents and Short-Term Investments	554.10M	1.09B	603.30M	56.10M	62.60M	71.60M
Total Debt	0.00	1.94B	2.41B	2.93B	4.48B	4.11B
Total Liabilities	-3.73B	4.99B	5.14B	5.67B	7.57B	7.46B
Stockholders Equity	3.73B	3.73B	3.61B	2.61B	1.77B	2.12B
Cash Flow
Free Cash Flow	0.00	-190.30M	90.30M	745.60M	252.60M	645.10M
Operating Cash Flow	0.00	156.20M	107.50M	761.30M	283.50M	711.70M
Investing Cash Flow	0.00	-154.70M	39.30M	80.80M	255.30M	-78.40M
Financing Cash Flow	0.00	-9.30M	392.70M	-853.70M	-538.60M	-636.20M

Walchandnagar Industries Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 174.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:WALCHANNAG, the sentiment is Positive. The current price of 174.6 is above the 20-day moving average (MA) of 167.70, above the 50-day MA of 171.10, and below the 200-day MA of 192.24, indicating a bullish trend. The MACD of 1.28 indicates Negative momentum. The RSI at 65.68 is Neutral, neither overbought nor oversold. The STOCH value of 82.02 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:WALCHANNAG.

Walchandnagar Industries Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DREDGECORP	59 Neutral	₹31.58B	-151.07	―	―	38.09%	67.21%
WALCHANNAG	54 Neutral	₹12.77B	-17.99	―	―	-27.50%	-109.77%
CCCL	54 Neutral	₹7.16B	5.76	―	―	35.46%	-85.85%
TEXINFRA	52 Neutral	₹12.35B	-1,393.72	―	0.15%	4.44%	-114.96%
SIMPLEXINF	44 Neutral	₹17.44B	29.97	―	―	-19.24%	-35.09%

Walchandnagar Industries Limited Corporate Events

Exchange Seeks Clarification From Walchandnagar Industries After Sharp Stock Price Move

The stock of Walchandnagar Industries Limited has experienced significant price movement, drawing regulatory attention. In response, the stock exchange has formally sought updated, relevant information from the company to ensure transparent disclosure and protect investor interests, with the market currently awaiting the company’s reply.