Wakefit Innovations Limited

Consumer Cyclical — Furnishings, Fixtures & Appliances · NSE

₹138.00+₹4.74 (+3.56%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

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

What does this company do?

Wakefit Innovations Limited manufactures and markets home furnishing products.

IndustryFurnishings, Fixtures & Appliances

SectorConsumer Cyclical

Employees2,178

Annual revenue₹1,475 Cr

How does it make money?

Turns over ₹1,475 Cr a year. Of every ₹100 of sales, about ₹13 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation. Each of its 2,178 employees supports ₹67.7 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹67.7 lakh

Who are its competitors?

The closest listed comparisons in its industry are HAVELLS INDIA LIMITED, VOLTAS LTD, TITAN COMPANY 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 8.9% 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 ROE17.1%

What is the outlook?

4 analysts covering the stock expect revenue to grow about 19.1% and earnings to grow about 23.7% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+19.1%

Est. earnings growth+23.7%

Analysts4

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +85% while net margin moved -170% 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+85%

Margin effect-170%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

68/ 100

Good

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

Valuation

59/ 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

23.5x

Sector Median

68.5x

median of 3 sector peers

🟢Against its sector it trades 66% below the peer median of 68.5x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

68.5x median of 3 peers · -66%

vs. generic bands

Fair

15x–35x

EV/EBITDA

20.9x

PEG

2.11

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from -10.9% to 15.4% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from -28.8% to 16.7%.
Return on capital is rising
ROCE has improved from -21.5% to 8.9%.
Very low debt
Debt/Equity of 0.24x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention0

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

Red Flags

1 item require attention · 1 high

🔴Debt has risen sharplyFinancial
Total debt is up 89% over 3 years, from ₹144 Cr to ₹272 Cr.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -10.9% to 15.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 66% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹215 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

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.

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

1Revenue growth stays above 17% a year✓ 22.8% CAGR
Latest reported year was 16.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 13%✓ 15.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹215 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 8.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 12 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
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 5 neutral · 0 weak

Market Cap

₹4,577 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

23.5x

Fair

Fairly valued against the generic band

P/B Ratio

4.01x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹5.88

Profitable

Profitable on a per-share basis

ROE

16.7%

Strong

Strong capital efficiency

ROCE

8.9%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.24x

Low

Conservative leverage

Revenue Growth (YoY)

16.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

11.1%

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

₹215 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

34.1x

Flat

At or above the trailing multiple — no earnings uplift is being priced in

Operating Margin

6.9%

Average

Average margins

Net Margin

12.5%

Good

Strong bottom-line conversion

Current Ratio

2.13

Comfortable

Healthy short-term liquidity

52W Range Position

24%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

139.0 / 140.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

44.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹797 Cr	₹968 Cr	₹1,256 Cr	₹1,475 Cr	+22.8%
EBITDA	-₹87 Cr	₹56 Cr	₹83 Cr	₹227 Cr	—
EBITDA Margin	-10.9%	5.7%	6.6%	15.4%	—
PAT (Net Profit)	-₹146 Cr	-₹15 Cr	-₹35 Cr	₹189 Cr	—
EPS	₹-4.46	₹-0.46	₹-1.07	₹6	—
ROE	-28.8%	-2.8%	-6.7%	16.7%	—
ROCE	-21.5%	0.3%	-0.8%	8.9%	—
Total Debt	₹144 Cr	₹190 Cr	₹273 Cr	₹272 Cr	+23.6%
Free Cash Flow	-₹60 Cr	₹52 Cr	₹25 Cr	₹215 Cr	—

🟢 Revenue has grown at 22.8% a year over 3 years.

🟢 EBITDA has turned positive, from -₹87 Cr to ₹227 Cr.

🟢 EBITDA Margin has risen from -10.9% to 15.4% over 3 years (+26.3 pts).

🟢 PAT (Net Profit) has turned positive, from -₹146 Cr to ₹189 Cr.

🟢 EPS has turned positive, from ₹-4.46 to ₹6.

🟢 ROE has risen from -28.8% to 16.7% over 3 years (+45.6 pts).

🟢 ROCE has risen from -21.5% to 8.9% over 3 years (+30.4 pts).

🔴 Total Debt has grown at 23.6% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹60 Cr to ₹215 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,751 Cr

Total Liabilities

₹619 Cr

Cash & Equivalents

₹88 Cr

Operating Cash Flow

₹245 Cr

Capex

-₹30 Cr

Shareholding (proxy)

Institutional Holding

44.2%

Insider Holding

46.1%

Analyst Consensus

Recommendations

3 Buy · 0 Hold · 1 Sell

Target Price (Mean)

₹172.5

+25.0% vs CMP

Target Range

₹100 – ₹200

Peer Comparison

Company	P/E	ROE
HAVELLS INDIA LIMITED	43.5x	17.1%
VOLTAS LTD	75.8x	7.0%
TITAN COMPANY LIMITED	68.5x	36.7%

Recent News

1 positive1 mixed4 general

WAKEFIT INNOVATIONS LTD Share Price

Upstox, 05 May

Wakefit Innovations Ltd | Stock Share Price Live

MarketSmith India, 21 May

Wakefit Innovations Ltd Upgraded to Hold by MarketsMOJO on Improved Technicals and Financials

MarketsMojo, 16 OctAnalyst view

🟢Potentially positiveAn analyst opinion changing, which moves the price without changing the business.

how Fair Value analysis predicted Wakefit’s 43% drop in three months

Investing.com India, 12 May

Why Is Wakefit Innovations Share Price Falling Key Reasons 2026

Univest, 26 JunPrice 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.

Wakefit Innovations Limited Actuals & Estimates (NSE:WAKEFIT)

TradingView, 25 Jun

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Growth · Profitability

MiddlingBusiness Quality · Valuation

WeakRisk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑