Wheels India Limited (WHEELS) AI Stock Analysis

• Market Cap: ₹22.02B
• Dividend Yield: 1.34%
• Average Volume (3M): 10.39K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 1.62
• Revenue Growth: 2.22%
• EPS Growth: 29.00%
• Country: IN
• Employees: 2,511
• Sector: Industrials
• Sector Strength: 72
• Industry: Auto - Parts
• EPS (TTM): 14.76
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: ₹971.00 ▲(10.85% Upside)
• Action: Downgraded Date: 11/26/25
• Date: Action: Downgraded 11/26/25

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

Revenue growth and margin improvement

Sustained revenue growth with notably higher gross and EBIT margins indicates improving operational efficiency and pricing/mix. This durable trend supports reinvestment in capacity, strengthens competitive positioning with OEMs, and provides a structural base for longer-term profit expansion.

Strong cash generation

Operating cash flow materially exceeds reported net income and free cash flow is growing, demonstrating reliable cash conversion. That persistent cash generation enhances the company’s ability to fund capex, service debt, and sustain dividends through automotive cycles, improving resilience.

Balanced leverage and financial stability

A moderate debt-to-equity and reasonable equity ratio reflect a balanced capital structure that preserves financial flexibility. This durable leverage profile allows Wheels India to invest in capacity or absorb demand swings without excessive interest burden, supporting steady operations.

Negative Factors

Low net profitability

Very low net margins limit the company’s capacity to absorb input cost shocks and reduce retained earnings available for reinvestment or shareholder returns. Persistently thin net profitability constrains long-term ROE improvement and makes performance sensitive to small cost or pricing changes.

Suboptimal return on equity

A 12% ROE signals moderate capital efficiency versus peers; if sustained it implies slower shareholder value creation. Improving ROE requires either higher net margins or better capital allocation, and the current level may limit long-term total-return potential for equity holders.

OEM concentration and input-cost exposure

Heavy reliance on OEM contracts and material-sensitive pricing makes revenue and margins cyclical. Exposure to steel price volatility and limited disclosed pass-through mechanisms can compress margins in adverse cycles, creating sustained earnings volatility unless contract structures shift materially.

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 demonstrates solid growth in revenue and operational efficiency, with stable leverage and cash flow generation. While profitability metrics like net margins and ROE are areas for improvement, the company is positioned well within the Auto - Parts industry with balanced financial health and a potential for enhanced returns through better cost management.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 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: Positive
• Last Price: 875.95
• 50DMA: Positive
• 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 Positive. The current price of 875.95 is below the 20-day moving average (MA) of 882.38, above the 50-day MA of 837.74, and above the 200-day MA of 813.88, indicating a bullish trend. The MACD of 24.00 indicates Positive momentum. The RSI at 58.96 is Neutral, neither overbought nor oversold. The STOCH value of 43.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:WHEELS.

Wheels India Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MMFL	72 Outperform	₹22.15B	25.57	―	1.07%	-4.47%	-17.62%
GNA	72 Outperform	₹18.02B	16.15	―	0.95%	-4.65%	9.95%
DIVGIITTS	71 Outperform	₹22.09B	60.04	―	0.44%	12.30%	-6.54%
STERTOOLS	70 Outperform	₹8.04B	22.00	―	0.87%	-19.33%	-26.30%
PRECAM	66 Neutral	₹12.95B	15.86	―	0.61%	-21.74%	38.10%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
WHEELS	58 Neutral	₹22.02B	16.29	―	1.34%	2.22%	29.00%

Wheels India Limited Corporate Events

Wheels India Posts Steady Q3 FY26 Performance, Declares Interim Dividend

Wheels India Limited’s board has approved the unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2025, showing continued profitability with net profit on a standalone basis rising to Rs 32.05 crore for the quarter and Rs 86.26 crore for the nine-month period, supported by revenue from operations of Rs 1,280.33 crore and Rs 3,636.22 crore respectively. In a move that underscores management’s confidence and provides a direct cash return to investors, the board has declared an interim dividend of Rs 5.30 per equity share for the financial year ending 31 March 2026, payable to shareholders on record as of 5 February 2026 and disbursable on or before 27 February 2026, reinforcing the company’s shareholder-focused capital allocation policy.

Wheels India Declares Interim Dividend After Reporting Strong Q3 FY26 Results

Wheels India Limited’s board has approved the unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2025, showing continued growth in revenue from operations and profitability compared with the previous year. Alongside the results, the board declared an interim dividend of Rs 5.30 per equity share of Rs 10 each for the financial year ending 31 March 2026, with 5 February 2026 set as the record date and payment to be made on or before 27 February 2026, signaling management’s confidence in the company’s financial performance and providing a direct payout to shareholders.

Wheels India Q3 Profit Jumps as GST 2.0 and Export Demand Power 21.7% Revenue Surge

Wheels India reported a strong third quarter for the period ended December 31, 2025, with net profit rising to Rs 32.05 crore from Rs 22.57 crore a year earlier and revenues climbing 21.7% to Rs 1,287 crore, driven primarily by robust domestic demand. Management attributed the performance to a rebound in its core wheel business for trucks, tractors and cars, supported by the positive impact of GST 2.0 and a low base in the previous year, while exports grew nearly 20% on strong demand for construction wheels in the US and windmill components in the EU. For the first nine months of FY26, revenue increased 13.1% to Rs 3,653 crore and net profit rose to Rs 86.3 crore, underscoring sustained momentum that the company expects to carry into the fourth quarter, especially if government infrastructure spending accelerates and global trade relations improve. Reflecting confidence in its performance and outlook, the board approved a higher interim dividend of Rs 5.3 per share, up from Rs 4.5 per share in the prior year, signaling value accretion for shareholders alongside growth across both domestic and export markets.

Wheels India Schedules Investor Conference Call

Wheels India Limited has announced a scheduled conference call with fund managers, analysts, and investors, organized by ICICI Securities. The meeting, set for November 27, 2025, in Chennai, aims to discuss publicly available information, potentially impacting investor relations and market perceptions.

Wheels India Limited Schedules Analyst and Investor Meet

Wheels India Limited has announced a scheduled meeting with analysts and institutional investors on November 27, 2025, organized by ICICI Securities in Chennai. This meeting will involve discussions based on publicly available information, potentially impacting investor perceptions and market positioning.