CWD Limited

Technology — Electronic Components · BSE

₹276.00−₹1.00 (−0.36%)

DalalBaazaar Score

58 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: Strong business and financial position, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:03 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of CWD Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

CWD Limited, an information and communication technology company, engages in the designing, developing, manufacturing, and sale of wireless communication products, IoT-enabled devices, and integrated technology solutions in India.

IndustryElectronic Components

SectorTechnology

Employees80

Annual revenue₹142 Cr

How does it make money?

Turns over ₹142 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹19 left at the operating level before interest, tax and depreciation. Each of its 80 employees supports ₹1.77 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin19.1%

Net margin7.8%

Revenue / employee₹1.77 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSULTANCY SERV LT, INFOSYS LIMITED, HCL TECHNOLOGIES LTD, WIPRO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

TATA CONSULTANCY SERV LTP/E 17.3x · ROE 45.6%

INFOSYS LIMITEDP/E 15.8x · ROE 32.0%

HCL TECHNOLOGIES LTDP/E 20.4x · ROE 24.6%

WIPRO LTDP/E 14.5x · ROE 15.9%

What is its competitive advantage?Some evidence

ROCE of 18.0% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE18.0%

ROE12.5%

Peer median ROE32.0%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +524% while net margin moved -17% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+524%

Margin effect-17%

DalalBaazaar Score

58/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ Beta of -0.43 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

62/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

49/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

61.2x

3Y Median

260.8x

40 monthly readings · mean 243.2x · range 108.3x–448.0x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 77% below its 3y median of 260.8x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 270% above the peer median of 16.5x.

vs. its own history

Cheap

260.8x median over 40 months · -77%

vs. sector peers

Expensive

16.5x median of 4 peers · +270%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

61.2x

P/B

5.42x

EV/EBITDA

25.9x

PEG

0.84

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Return on capital is rising
ROCE has improved from 13.5% to 18.0%.
Valuation below its historical average
At 61.2x the stock trades 77% below its own median of 260.8x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention4

Margins are compressing
EBITDA margin has slipped from 26.7% to 19.1% over 3 years.
Debt is rising
Total debt is up 1534% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Inventory building faster than sales
Inventory is up 770% against revenue growth of 524% — stock may not be moving.

Red Flags

6 items require attention · 5 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 1534% over 3 years, from ₹5 Cr to ₹80 Cr.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 7.5 points, from 26.7% to 19.1%.
🔴Inventory building faster than salesFinancial
Inventory up 770% against revenue up 524% — stock may not be moving.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 23% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 77% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 26.7% to 19.1%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
A premium to the sector to defend
It trades 270% above the peer median. That premium needs a reason that persists, or it closes.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
5 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 63% a year✓ 84.1% CAGR
Latest reported year was 286.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 17%✓ 19.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹82 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 15%✓ 18.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 4 neutral · 3 weak

Market Cap

₹680 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

61.2x

Expensive

Expensive — verify against sector peers

P/B Ratio

5.42x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹4.51

Profitable

Profitable on a per-share basis

ROE

12.5%

Moderate

Moderate capital efficiency

ROCE

18.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.71x

Moderate

Moderate leverage

Revenue Growth (YoY)

286.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

57.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹87 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹276

ROA

7.0%

Average

Average asset productivity

Operating Margin

11.2%

Average

Average margins

Net Margin

7.8%

Average

Average bottom-line conversion

Current Ratio

1.75

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.43

Defensive

Steadier than the market

52W Range Position

13%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

289.2 / 303.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

39.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹23 Cr	₹21 Cr	₹33 Cr	₹142 Cr	+84.1%
EBITDA	₹6 Cr	₹6 Cr	₹8 Cr	₹27 Cr	+64.8%
EBITDA Margin	26.7%	26.8%	23.8%	19.1%	—
PAT (Net Profit)	₹2 Cr	₹1 Cr	₹3 Cr	₹11 Cr	+72.8%
EPS	₹1.19	₹0.63	₹1.11	—	—
ROE	9.8%	4.0%	4.3%	9.8%	—
ROCE	13.5%	8.0%	7.9%	18.0%	—
Total Debt	₹5 Cr	₹13 Cr	₹9 Cr	₹80 Cr	+153.8%
Free Cash Flow	-₹5 Cr	-₹8 Cr	-₹0 Cr	-₹82 Cr	—

🟢 Revenue has grown at 84.1% a year over 3 years.

🟢 EBITDA has grown at 64.8% a year over 3 years.

🔴 EBITDA Margin has fallen from 26.7% to 19.1% over 3 years (-7.5 pts).

🟢 PAT (Net Profit) has grown at 72.8% a year over 3 years.

🟡 ROE has held roughly flat at 9.8% over 3 years.

🟢 ROCE has risen from 13.5% to 18.0% over 3 years (+4.5 pts).

🔴 Total Debt has grown at 153.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹239 Cr

Total Liabilities

₹126 Cr

Total Debt

₹80 Cr

Cash & Equivalents

₹57 Cr

Operating Cash Flow

-₹48 Cr

Capex

-₹34 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

63.7%

Peer Comparison

Company	P/E	ROE
TATA CONSULTANCY SERV LT	17.3x	45.6%
INFOSYS LIMITED	15.8x	32.0%
HCL TECHNOLOGIES LTD	20.4x	24.6%
WIPRO LTD	14.5x	15.9%

Recent News

1 positive3 mixed2 general

CWD Share Price Rise Today With Sector Valuation Context

Univest, 05 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

CWD Ltd shareholders approve all five resolutions at 10th AGM

scanx.trade, 05 Oct

Earnings To Watch: CaliberCos Inc (CWD) Q2 2026 -- GF Value Sees 17% Upside

Yahoo Finance, 12 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

CWD Ltd. Share Price Up 8.64%: Price, Valuation Analysis

Univest, 21 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Thursday's session: gap up and gap down stocks

ChartMill, 02 Jul

4:1 Bonus issue: This micro-cap stock fixes record date

Zee Business, 31 DecCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong13/20

🟡Financial HealthAdequate10.8/20

🟢GrowthStrong14.7/20

🟡ProfitabilityModerate8.3/15

🔴ValuationDemanding6.7/15

🔴RiskHigh4/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 5 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 63% a year84.1% CAGR
✓EBITDA margin holds above 17%19.1%
✗Debt / EBITDA stays below 2x2.9x
✗Free cash flow remains positive-₹82 Cr
✓ROCE stays above 15%18.0%