Enkei Wheels (India) Limited

Consumer Cyclical — Auto Parts · NSE

₹396.00+₹5.00 (+1.28%)

DalalBaazaar Score

44 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by moderate debt load, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, 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, 7:49 pm

Understanding the Business

Company site ↗

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

What does this company do?

Enkei Wheels (India) Limited manufactures and sells aluminium alloy casting wheels for two-wheelers and four-wheelers in India. Its products are used in the automobile industry. The company also exports its products.

IndustryAuto Parts

SectorConsumer Cyclical

Employees565

Annual revenue₹959 Cr

How does it make money?

Turns over ₹959 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation. Each of its 565 employees supports ₹1.70 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.70 Cr

Who are its competitors?

The closest listed comparisons in its industry are BOSCH LIMITED, MARUTI SUZUKI INDIA LTD., TVS MOTOR COMPANY LTD, EICHER MOTORS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 7.5% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE23.0%

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 +47% while net margin moved -6% 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+47%

Margin effect-6%

DalalBaazaar Score

44/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 9.1% is weak

Quality vs. Valuation

Company Quality

43/ 100

Weak

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

Valuation

60/ 100

Fair

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

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

32.7x

Sector Median

45.7x

median of 4 sector peers

🟢Against its sector it trades 29% below the peer median of 45.7x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

45.7x median of 4 peers · -29%

vs. generic bands

Fair

15x–35x

EV/EBITDA

10.1x

PEG

2.86

What's Good / What's Bad

🟢 What's Going Well2

Cash generation is improving
Free cash flow is up 172% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.3x — little room if earnings dip.
🔴Receivables growing faster than salesFinancial
Receivables up 116% against revenue up 47% — sales are being booked faster than they are collected.
🟡Debt is increasingFinancial
Total debt is up 29% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 29% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

Sales are being booked faster than collected
Receivables are up 116% against revenue up 47%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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
2 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 10% a year✓ 13.6% CAGR
Latest reported year was 36.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 8%✓ 9.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Interest cover stays above 3x✗ 1.3x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹15 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

5 / 10 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

Price history

Quick Metrics

3 good · 6 neutral · 2 weak

Market Cap

₹712 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

32.7x

Fair

Fairly valued against the generic band

P/B Ratio

2.85x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹12.12

Profitable

Profitable on a per-share basis

ROE

9.1%

Moderate

Moderate capital efficiency

ROCE

7.5%

Weak

Low return on total capital employed

Debt/Equity

1.23x

Moderate

Moderate leverage

Revenue Growth (YoY)

36.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

93.3%

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

-₹50 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

5.1%

Average

Average asset productivity

Operating Margin

6.1%

Average

Average margins

Net Margin

1.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.35

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.16

Defensive

Steadier than the market

52W Range Position

45%

Mid-range

Technical Snapshot

RSI (14)

58.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY22	FY23	FY24	FY25	3Y CAGR
Revenue	₹654 Cr	₹707 Cr	₹832 Cr	₹959 Cr	+13.6%
EBITDA	₹54 Cr	₹69 Cr	₹67 Cr	₹91 Cr	+19.1%
EBITDA Margin	8.2%	9.7%	8.1%	9.5%	—
PAT (Net Profit)	₹4 Cr	₹12 Cr	₹3 Cr	₹5 Cr	+11.4%
EPS	₹2.06	₹6.51	₹1.48	₹2.86	+11.6%
ROE	1.7%	5.0%	1.1%	2.1%	—
ROCE	7.1%	7.1%	4.1%	7.5%	—
Total Debt	₹162 Cr	₹167 Cr	₹206 Cr	₹210 Cr	+8.9%
Free Cash Flow	₹6 Cr	₹1 Cr	-₹38 Cr	₹15 Cr	+39.6%

🟢 Revenue has grown at 13.6% a year over 3 years.

🟢 EBITDA has grown at 19.1% a year over 3 years.

🟢 EBITDA Margin has risen from 8.2% to 9.5% over 3 years (+1.3 pts).

🟢 PAT (Net Profit) has grown at 11.4% a year over 3 years.

🟢 EPS has grown at 11.6% a year over 3 years.

🟡 ROE has held roughly flat at 2.1% over 3 years.

🟡 ROCE has held roughly flat at 7.5% over 3 years.

🔴 Total Debt has grown at 8.9% a year over 3 years.

🟢 Free Cash Flow has grown at 39.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2025

Total Assets

₹605 Cr

Total Liabilities

₹365 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹44 Cr

Capex

-₹28 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

85.8%

Peer Comparison

Company	P/E	ROE
BOSCH LIMITED	56.9x	15.9%
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TVS MOTOR COMPANY LTD	56.8x	35.8%
EICHER MOTORS LTD	34.7x	23.0%

Recent News

2 positive1 mixed3 general

Enkei Wheels India turns profitable in Q1FY27 with 36.8% revenue surge

scanx.trade, 06 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Enkei Wheels (India) Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 01 Sept

ACGL Stock Price and Chart — NSE:ACGL

TradingView, 17 Aug

Enkei Wheels Q4 FY26: Revenue Rises, Net Loss Narrows

scanx.trade, 12 MayResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Stocks to Watch Today: Gaudium IVF, Vishal Mega Mart, Netweb Tech, MSTC, Brigade Enterprises, Hindalco,...

Moneycontrol.com, 27 Feb

Enkei Wheels Discloses Voting Results for 17th AGM with Unanimous Approval

scanx.trade, 16 AprResults

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

Watch Items

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

DalalBaazaar Thesis

StrongGrowth

MiddlingValuation

WeakBusiness Quality · Financial Health · Profitability · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 2 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Interest cover stays above 3x · see Key things to watch ↑