The Indian Wood Products Company Limited

Basic Materials — Lumber & Wood Production · NSE

₹35.60−₹0.26 (−0.73%)

DalalBaazaar Score

55 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Low

Driven by 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. Thin profit margins are the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

The Indian Wood Products Company Limited engages in the manufacture and trading of Katha in India. It offers cutch and catechins products, as well as processed Gambier. The company also trades in spices.

IndustryLumber & Wood Production

SectorBasic Materials

Employees305

Annual revenue₹227 Cr

How does it make money?

Turns over ₹227 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 305 employees supports ₹74.3 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹74.3 lakh

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, ULTRATECH CEMENT LIMITED, ASIAN PAINTS LIMITED. 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 2.9% 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 ROE22.3%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +25% while net margin moved +98% 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+25%

Margin effect+98%

DalalBaazaar Score

55/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 1.3% is weak

Quality vs. Valuation

Company Quality

53/ 100

Average

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

Valuation

42/ 100

Expensive

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

37.9x

Sector Median

28.7x

median of 4 sector peers

⚠️Against its sector it trades 32% above the peer median of 28.7x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Expensive

28.7x median of 4 peers · +32%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

18.2x

PEG

1.07

What's Good / What's Bad

🟢 What's Going Well4

Debt is being paid down
Total debt is down 15% over 3 years.
Cash generation is improving
Free cash flow is up 117% over 3 years.
Very low debt
Debt/Equity of 0.19x leaves the balance sheet with plenty of headroom.
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

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Self-funding with balance-sheet headroom
Positive free cash flow of ₹19 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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?

The debt load needs earnings to hold up
Debt is 4.2x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
A premium to the sector to defend
It trades 32% above the peer median. That premium needs a reason that persists, or it closes.
Growth barely outpaces inflation
Revenue compounding at 7.8% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
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.

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

1EBITDA margin holds above 5%✓ 7.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 4.2x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ 2.0x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 6% a year✓ 7.8% CAGR
Latest reported year was 26.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹19 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

7 / 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

6 good · 3 neutral · 2 weak

Market Cap

₹228 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

37.9x

Fair

Fairly valued against the generic band

P/B Ratio

0.61x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.94

Profitable

Profitable on a per-share basis

ROE

1.3%

Weak

Weak capital efficiency

ROCE

2.9%

Weak

Low return on total capital employed

Debt/Equity

0.19x

Low

Conservative leverage

Revenue Growth (YoY)

26.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

116.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.56%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹19 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

4.4%

Weak

Thin margins leave little room for error

Net Margin

2.4%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.52

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.10

Defensive

Steadier than the market

52W Range Position

29%

Mid-range

Technical Snapshot

RSI (14)

51.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹181 Cr	₹191 Cr	₹222 Cr	₹227 Cr	+7.8%
EBITDA	₹12 Cr	₹16 Cr	₹18 Cr	₹16 Cr	+10.3%
EBITDA Margin	6.7%	8.3%	7.9%	7.2%	—
PAT (Net Profit)	₹2 Cr	₹4 Cr	₹5 Cr	₹5 Cr	+35.4%
EPS	₹0.29	₹0.57	₹0.83	₹0.71	+34.8%
ROE	0.5%	1.0%	1.5%	1.3%	—
ROCE	2.0%	2.9%	3.3%	2.9%	—
Total Debt	₹79 Cr	₹78 Cr	₹80 Cr	₹68 Cr	-5.2%
Free Cash Flow	₹9 Cr	₹9 Cr	₹10 Cr	₹19 Cr	+29.4%

🟢 Revenue has grown at 7.8% a year over 3 years.

🟢 EBITDA has grown at 10.3% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 7.2% over 3 years.

🟢 PAT (Net Profit) has grown at 35.4% a year over 3 years.

🟢 EPS has grown at 34.8% a year over 3 years.

🟡 ROE has held roughly flat at 1.3% over 3 years.

🟡 ROCE has held roughly flat at 2.9% over 3 years.

🟢 Total Debt has shrunk at 5.2% a year over 3 years.

🟢 Free Cash Flow has grown at 29.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹528 Cr

Total Liabilities

₹165 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹24 Cr

Capex

-₹4 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

74.3%

Corporate Actions

Dividend Rate

₹0.2

Ex-Dividend Date

15 Sept 2026

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
ULTRATECH CEMENT LIMITED	37.6x	11.1%
ASIAN PAINTS LIMITED	46.9x	22.3%

Recent News

2 mixed4 general

Indian Wood Products (BSE:540954) - Stock Analysis

Simply Wall Street, 15 Oct

Indian Wood Products (IWP.NS) Eases 0.72% to ₹36.05 as Traders Eye ₹34.25 Support - Naked POC

https://www.siam.in/, 14 Oct

Indian Wood Products seeks shareholder nod to alter memorandum of association

scanx.trade, 15 Oct

IWP Share Price rises 8.69% today: key details

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.

Elitecon International Ltd Share Price

Business Today, 16 Oct

IWP Share Price Falls 11.76% on Valuation Gap

Univest, 29 SeptPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingValuation · Risk

WeakBusiness Quality · Profitability

Points for each in the Score ↑

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.

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