WENDT India Limited (WENDT) AI Stock Analysis

• Market Cap: ₹13.98B
• Dividend Yield: 0.62%
• Average Volume (3M): 633.00
• Price to Earnings (P/E): 62.5
• Beta (1Y): 0.80
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 378
• Sector: Industrials
• Sector Strength: 72
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 14.90
• Shares Outstanding: 2,000,000
• 10 Day Avg. Volume: 452
• 30 Day Avg. Volume: 633
• PEG Ratio: -13.33
• Price to Book (P/B): 7.72
• Price to Sales (P/S): 8.05
• P/FCF Ratio: -86.81
• 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: 59 Neutral
• Price Target: ₹7,304.00 ▼(-7.29% Downside)

The score is anchored by solid fundamentals—especially the very strong balance sheet and generally healthy margins—but is held back by weak cash-flow conversion (including negative FY2025 free cash flow). Technicals are also soft with the price below major moving averages and negative MACD, while a high P/E and low dividend yield further limit valuation support.

Positive Factors

Very low leverage / strong balance sheet

Extremely low debt and growing equity provide durable financial flexibility. This reduces refinancing and solvency risk, lets the company fund capex/working-capital needs or opportunistic M&A from internal resources, and cushions earnings volatility over the medium term.

Multi-year revenue expansion

Sustained revenue growth over multiple years signals stable demand for its cutting, grinding and material-prep products. This supports scale economies, aftermarket potential and product investment, underpinning longer-term market position and organic growth prospects.

Healthy margins and returns

Relatively high gross and operating margins reflect product mix and pricing power in specialized industrial tooling. Combined with mid-teens ROE, these margins provide sustainable internal cash generation potential (absent cash-conversion issues) and room to reinvest in capabilities.

Negative Factors

Weak cash-flow conversion / negative FCF

Operating cash fell short of reported earnings and free cash flow swung negative, implying working-capital strain or heavy capex. This undermines earnings quality, forces reliance on the balance sheet for funding, and can limit durable dividend, buyback or reinvestment capacity.

Profitability softened and margins volatile

Earnings and margin inconsistency point to exposure to cost swings, product-mix shifts or pricing pressure. Persistent volatility reduces cash-flow predictability and raises execution risk for maintaining high-margin segments, complicating medium-term planning and return targets.

Significant recent EPS contraction

A sharp decline in EPS indicates earnings under pressure despite revenue gains. If continued, this trend could erode reinvestment ability and returns to shareholders and may signal structural cost, margin or efficiency issues that weaken long-term profit resilience.

WENDT India Limited Business Overview & Revenue Model

Company Description

Wendt (India) Limited, together with its subsidiaries, manufactures and sells super abrasives, high precision grinding, honing, special purpose machines, and high precision components in India and internationally. The company operates through two segments, Super Abrasives; and Machines, Accessories and Components. The company offers super abrasives, including resin and metal bonds, hybrid wheels, vitrified bonds, electroplated bonds, rotary diamond dressers, hones, stationary diamond dressers, PCD/PCBN tools and wear parts, brazed products, and diamond segments and pellets. It also provides grinding, dressing, and honing machines; precision components, such as hardened and ground flanges; single point, natural point diamond, chisel type, grit impregnated, cluster type, multi-point indexable, blade type, and MCD-blade type diamond dressers; and resin bond diamond wheels, electroplated diamond mounted points, electroplated files, dressing stones, and diamond lapping compounds, as well as diamond disc for grinding and hacking concrete. In addition, the company offers machine refurbishing products, surface finishing solutions, flokings, and accessories and equipment; and finishing films and fine grinding wheels. Further, the company provides rotary dresser, precision electroplated tools, polyamide wheels, vitrified CBN wheels, rotary dresser power steering, EP wheels, and EP collets. Its products are used in industries, including automobile, auto component, engineering, aerospace, defense, ceramics, glass wheels, textile, turbo charger, medical, biomedical, gear shaft grinding, and cutting tool industry. The company also exports its products. Wendt (India) Limited was incorporated in 1980 and is headquartered in Hosur, India.

How the Company Makes Money

WENDT India Limited Financial Statement Overview

Summary

Strong revenue growth and healthy profitability are supported by an exceptionally low-debt balance sheet. The main weakness is cash-flow quality: operating cash conversion weakened and FY2025 free cash flow turned negative, lowering confidence in near-term cash generation despite low leverage.

Income Statement

Revenue has expanded strongly over the period (from ~1.37B in FY2021 to ~2.34B in FY2025), supporting solid profitability. Margins are generally healthy (FY2025 gross margin ~62%, EBIT margin ~22%, net margin ~17%), but profitability has softened versus prior years (net income down in FY2025 vs FY2024; EBIT and EBITDA margins also declined). One notable weakness is volatility in reported gross margin (e.g., FY2023 markedly lower than other years), which suggests less consistency in cost/mix.

Balance Sheet

Balance sheet strength is a key positive: leverage is extremely low (FY2025 debt-to-equity ~0.6% with only ~15.8M total debt against ~2.44B equity), providing substantial financial flexibility. Equity and assets have grown steadily (equity up from ~1.43B in FY2021 to ~2.44B in FY2025). Returns are solid (FY2025 return on equity ~16%), though down from the ~19% range in FY2023–FY2024, indicating slightly weaker efficiency recently.

Cash Flow

Cash generation is the main mixed area. Operating cash flow is positive but does not consistently convert from earnings (FY2025 operating cash flow was ~336M vs ~395M net income, implying weaker cash conversion than prior years). Free cash flow is volatile, turning negative in FY2025 (~-217M) after being positive in FY2022–FY2024, which points to heavier investment or working-capital pressure. This swing raises near-term quality-of-earnings and funding comfort questions despite low leverage.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.36B	2.34B	2.27B	2.10B	1.79B	1.37B
Gross Profit	1.24B	1.46B	1.41B	1.36B	1.06B	846.12M
EBITDA	578.30M	613.50M	631.70M	616.10M	461.49M	266.09M
Net Income	355.80M	394.80M	409.50M	400.90M	270.67M	127.66M
Balance Sheet
Total Assets	0.00	3.01B	2.56B	2.29B	2.04B	1.85B
Cash, Cash Equivalents and Short-Term Investments	699.00M	699.00M	912.50M	841.10M	779.00M	517.45M
Total Debt	0.00	15.80M	0.00	0.00	9.99M	9.97M
Total Liabilities	-2.44B	571.10M	436.40M	398.90M	419.06M	415.98M
Stockholders Equity	2.44B	2.44B	2.12B	1.89B	1.62B	1.43B
Cash Flow
Free Cash Flow	0.00	-216.80M	134.80M	231.40M	319.52M	-21.16M
Operating Cash Flow	0.00	336.40M	298.10M	330.00M	368.56M	82.20M
Investing Cash Flow	0.00	-255.80M	-84.00M	-179.10M	-297.44M	-14.84M
Financing Cash Flow	0.00	-90.00M	-160.00M	-160.20M	-80.19M	-60.29M

WENDT India Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INDOTECH	68 Neutral	₹14.13B	16.78	―	―	34.48%	40.61%
ELECTHERM	68 Neutral	₹10.34B	3.69	―	―	-7.98%	-26.21%
ROTO	66 Neutral	₹10.56B	36.84	―	0.36%	2.00%	-20.08%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
WENDT	59 Neutral	₹13.98B	62.55	―	0.62%	―	―
WHEELS	58 Neutral	₹18.59B	13.75	―	1.34%	2.22%	29.00%

WENDT India Limited Corporate Events

Wendt India Files SEBI Regulation 74(5) Compliance Certificate for Q3 FY2025

Wendt (India) Limited has submitted to the stock exchanges the requisite certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018, for the quarter ended 31 December 2025, confirming compliance with dematerialisation and rematerialisation reporting requirements. Its registrar KFin Technologies Limited has certified that details of securities processed during the quarter have been duly furnished to all exchanges where the company’s shares are listed, underscoring the company’s adherence to regulatory norms and supporting transparency for investors and market regulators.

Wendt India Bolsters Global Presence with Capital Infusion

Wendt (India) Limited has infused EUR 1.1 million capital into its wholly owned subsidiary Wendt GmbH in Germany, following its initial establishment in July 2025. This investment aims to support the subsidiary’s fixed costs and operational needs, reflecting the company’s commitment to strengthening global operations and maintaining industry leadership in grinding and polishing technologies.