Wheels India Limited (WHEELS) AI Stock Analysis

• Market Cap: ₹22.41B
• Dividend Yield: 1.34%
• Average Volume (3M): 10.39K
• Price to Earnings (P/E): 18.1
• Beta (1Y): 1.36
• Revenue Growth: 2.22%
• EPS Growth: 29.00%
• Country: IN
• Employees: 2,511
• Sector: Industrials
• Sector Strength: 72
• Industry: Auto - Parts
• EPS (TTM): 12.68
• Shares Outstanding: 24,433,012
• 10 Day Avg. Volume: 7,209
• 30 Day Avg. Volume: 10,387
• PEG Ratio: 0.17
• Price to Book (P/B): 1.60
• Price to Sales (P/S): 0.31
• P/FCF Ratio: 7.73
• 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: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: ₹881.00 ▲(2.07% Upside)

Wheels India Limited's overall stock score reflects solid financial performance with room for improvement in profitability metrics. The technical analysis indicates bearish momentum, which weighs down the score. Valuation is fair, but not compelling enough to offset the negative technical indicators.

Positive Factors

Operational Efficiency

A high gross profit margin indicates strong operational efficiency, enabling the company to maintain competitive pricing and invest in growth.

Cash Generation

Strong cash generation capability supports ongoing operations and strategic investments, enhancing long-term financial stability.

Revenue Diversification

Diversification across products and markets reduces dependency on any single segment, providing resilience against market fluctuations.

Negative Factors

Modest Profitability

Low net profit margins suggest challenges in cost management, potentially limiting reinvestment capacity and shareholder returns.

Return on Equity

A low ROE indicates inefficiencies in generating returns from equity, which may deter investors seeking higher profitability.

Revenue Growth

Negative revenue growth reflects potential market challenges or competitive pressures, impacting future earnings potential.

Wheels India Limited Business Overview & Revenue Model

Company Description

Wheels India Limited, together with its subsidiary, engages in the manufacture and sale of automotive and industrial components in India and internationally. The company offers steel wheels for use in heavy and light vehicles, as well as for agricultural applications; off-road construction wheels, wire wheels, and forged aluminum wheels; air suspension systems for buses, trucks, and trailers, as well as control and specialty products; and wind turbines and machined components for various other applications. It also provides auto structural products, such as beams, boxes, columns, auto welded and manually welded plates, and rolled sections; and fabrication services for construction and mining equipment sector. Wheels India Limited was incorporated in 1960 and is based in Chennai, India.

How the Company Makes Money

Wheels India Limited generates revenue through the manufacturing and sale of steel wheels and related components. The company's primary revenue streams include sales to original equipment manufacturers (OEMs) in the automotive sector, where they supply wheels for passenger cars and commercial vehicles. Additionally, WHEELS earns income from aftermarket sales, providing replacement wheels and parts to consumers. The company has established significant partnerships with major automotive manufacturers, which secure long-term contracts and contribute to stable revenue. Furthermore, WHEELS benefits from its diversified product offerings and a growing presence in export markets, enhancing its earnings potential.

Wheels India Limited Financial Statement Overview

Summary

Wheels India Limited shows strong revenue growth and operational efficiency with a gross profit margin of 30.2%. However, net profit margins and ROE are modest, indicating room for improvement in profitability and shareholder returns.

Income Statement

Wheels India Limited exhibits a strong revenue growth trajectory, with significant improvements in gross and EBIT margins over the years. The gross profit margin has reached 30.2% in the latest year, showcasing improved operational efficiency. However, net profit margins remain modest at 2.3%, indicating room for improvement in cost management and profitability.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.8, reflecting a balanced approach to leveraging. The equity ratio stands at 28.9%, suggesting a fair level of financial stability. Return on equity is relatively low at 12%, indicating potential for enhanced shareholder returns with better net income management.

Cash Flow

Free cash flow growth has been positive, with a 6.8% increase year-on-year. The operating cash flow to net income ratio is robust at 3.6, reflecting strong cash generation capability. However, the free cash flow to net income ratio is 1.72, indicating that while cash generation is healthy, there may be inefficiencies in converting earnings into free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	48.44B	47.44B	49.77B	46.40B	39.66B	24.13B
Gross Profit	13.42B	14.33B	13.33B	6.72B	5.97B	4.70B
EBITDA	3.75B	3.52B	2.66B	2.42B	2.67B	1.44B
Net Income	1.17B	1.11B	627.70M	553.50M	764.70M	18.20M
Balance Sheet
Total Assets	0.00	31.88B	31.04B	30.10B	29.74B	24.76B
Cash, Cash Equivalents and Short-Term Investments	42.00M	82.70M	68.70M	25.90M	63.30M	27.80M
Total Debt	0.00	7.37B	7.78B	8.19B	8.76B	6.98B
Total Liabilities	-9.32B	22.56B	22.55B	22.32B	22.23B	17.96B
Stockholders Equity	9.32B	9.22B	8.40B	7.64B	7.34B	6.61B
Cash Flow
Free Cash Flow	0.00	1.91B	1.79B	2.21B	-1.08B	284.00M
Operating Cash Flow	0.00	4.00B	3.29B	3.73B	276.10M	1.48B
Investing Cash Flow	0.00	-2.13B	-1.50B	-1.48B	-1.20B	-1.18B
Financing Cash Flow	0.00	-1.88B	-1.46B	-2.11B	838.10M	-310.80M

Wheels India Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 863.10
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:WHEELS, the sentiment is Neutral. The current price of 863.1 is below the 20-day moving average (MA) of 883.38, below the 50-day MA of 890.80, and above the 200-day MA of 749.87, indicating a neutral trend. The MACD of -11.89 indicates Positive momentum. The RSI at 42.52 is Neutral, neither overbought nor oversold. The STOCH value of 24.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:WHEELS.

Wheels India Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GNA	76 Outperform	₹13.75B	13.10	―	0.95%	-4.65%	9.95%
MMFL	68 Neutral	₹14.93B	13.46	―	1.22%	-4.47%	-17.62%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
STERTOOLS	62 Neutral	₹11.07B	22.59	―	0.88%	-19.33%	-26.30%
DIVGIITTS	61 Neutral	₹18.90B	69.08	―	0.44%	12.30%	-6.54%
PRECAM	61 Neutral	₹17.45B	28.46	―	0.57%	-21.74%	38.10%
WHEELS	58 Neutral	₹22.41B	18.05	―	1.34%	2.22%	29.00%