Vidya Wires Limited

Industrials — Electrical Equipment & Parts · NSE

₹93.65+₹2.85 (+3.14%)

DalalBaazaar Score

58 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

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

In simple words: Strong business and financial position, with modest growth. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Vidya Wires Limited manufactures and sells winding and conductivity products in India.

IndustryElectrical Equipment & Parts

SectorIndustrials

Employees154

Annual revenue₹1,835 Cr

How does it make money?

Turns over ₹1,835 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation. Each of its 154 employees supports ₹11.91 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin5.1%

Net margin3.1%

Revenue / employee₹11.91 Cr

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, HAVELLS INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

SIEMENS LTDP/E 88.8x · ROE 10.5%

ABB INDIA LIMITEDP/E 92.6x · ROE 19.1%

HAVELLS INDIA LIMITEDP/E 43.5x · ROE 17.1%

What is its competitive advantage?Some evidence

ROCE of 18.2% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE18.2%

ROE12.0%

Peer median ROE17.1%

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 +82% while net margin moved +47% 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+82%

Margin effect+47%

DalalBaazaar Score

58/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

64/ 100

Average

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

Valuation

67/ 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

31.7x

1.0Y Median

34.6x

12 monthly readings · mean 37.1x · range 24.4x–57.0x

Sector Median

88.8x

median of 3 sector peers

🟡Currently trading close to its 1.0y median of 34.6x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 64% below the peer median of 88.8x.

vs. its own history

Fair

34.6x median over 12 months · -8%

vs. sector peers

Cheap

88.8x median of 3 peers · -64%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

31.7x

P/B

4.12x

EV/EBITDA

21.5x

PEG

0.82

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 12% over 3 years.
Very low debt
Debt/Equity of 0.18x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention5

Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 21.5% to 12.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 32.8% to 18.2% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 133% against revenue growth of 82% — customers are taking longer to pay.
Inventory building faster than sales
Inventory is up 121% against revenue growth of 82% — stock may not be moving.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Receivables growing faster than salesFinancial
Receivables up 133% against revenue up 82% — sales are being booked faster than they are collected.
🟡Inventory building faster than salesFinancial
Inventory up 121% against revenue up 82% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 18.2% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Cheaper than its peers
It trades 64% 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 133% against revenue up 82%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 21.5% to 12.0%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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 17% a year✓ 22.1% CAGR
Latest reported year was 33.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 3%✓ 5.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹111 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 15%✓ 18.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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 · 6 neutral · 1 weak

Market Cap

₹1,992 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

31.7x

Fair

Fairly valued against the generic band

P/B Ratio

4.12x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹2.95

Profitable

Profitable on a per-share basis

ROE

12.0%

Moderate

Moderate capital efficiency

ROCE

18.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.18x

Low

Conservative leverage

Revenue Growth (YoY)

33.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

8.0%

Modest

Slow profit growth

Dividend Yield

None

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

Free Cash Flow

-₹111 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹93.65

Operating Margin

3.8%

Weak

Thin margins leave little room for error

Net Margin

3.2%

Average

Average bottom-line conversion

Current Ratio

4.26

Comfortable

Healthy short-term liquidity

52W Range Position

68%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

92.2 / 90.5

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

54.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,009 Cr	₹1,181 Cr	₹1,474 Cr	₹1,835 Cr	+22.1%
EBITDA	₹40 Cr	₹48 Cr	₹68 Cr	₹93 Cr	+32.7%
EBITDA Margin	4.0%	4.0%	4.6%	5.1%	—
PAT (Net Profit)	₹22 Cr	₹26 Cr	₹41 Cr	₹58 Cr	+38.9%
EPS	₹1.01	₹1.21	₹1.91	₹2.71	+38.9%
ROE	21.5%	20.5%	24.4%	12.0%	—
ROCE	32.8%	31.1%	35.0%	18.2%	—
Total Debt	₹97 Cr	₹110 Cr	₹146 Cr	₹85 Cr	-4.2%
Free Cash Flow	₹29 Cr	-₹2 Cr	-₹24 Cr	-₹111 Cr	—

🟢 Revenue has grown at 22.1% a year over 3 years.

🟢 EBITDA has grown at 32.7% a year over 3 years.

🟢 EBITDA Margin has risen from 4.0% to 5.1% over 3 years (+1.1 pts).

🟢 PAT (Net Profit) has grown at 38.9% a year over 3 years.

🟢 EPS has grown at 38.9% a year over 3 years.

🔴 ROE has fallen from 21.5% to 12.0% over 3 years (-9.5 pts).

🔴 ROCE has fallen from 32.8% to 18.2% over 3 years (-14.6 pts).

🟢 Total Debt has shrunk at 4.2% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹29 Cr to -₹111 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹606 Cr

Total Liabilities

₹126 Cr

Total Debt

₹85 Cr

Cash & Equivalents

₹73 Cr

Operating Cash Flow

-₹9 Cr

Capex

-₹102 Cr

Shareholding (proxy)

Institutional Holding

2.5%

Insider Holding

72.8%

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

1 positive1 mixed4 general

Vidya Wires Share Price Target 2027 to 2030: Analyst Outlook

Univest, 14 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

VIDYAWIRES Stock Price and Chart — NSE:VIDYAWIRES

TradingView, 29 May

Vidya Wires files FY26 annual report, schedules Sept 18 AGM

scanx.trade, 24 Aug

Vidya Wires Q4 Revenue Surges 58% to ₹600 Crore; Net Profit Up 54%

Sahi, 12 MayResults

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

Vidya Wires IPO: Issue Size, Dates, P/E Ratio & How to Apply

INDmoney, 26 Mar

Vidya Wires IPO Day 1: Check Subscription Status & Key Highlights

Groww, 02 Dec

Watch Items

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

DalalBaazaar Thesis

🔴Business QualityWeak8.8/20

🟢Financial HealthStrong14.5/20

🟢GrowthStrong18.5/20

🔴ProfitabilityWeak6/15

🟡ValuationFair8.1/15

🔴RiskHigh2.4/10

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. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 17% a year22.1% CAGR
✓EBITDA margin holds above 3%5.1%
✗Free cash flow remains positive-₹111 Cr
✓Debt / EBITDA stays below 2x0.9x
✓ROCE stays above 15%18.2%