Wonder Electricals Limited

Consumer Cyclical — Furnishings, Fixtures & Appliances · NSE

₹71.99−₹1.15 (−1.57%)

DalalBaazaar Score

51 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by moderate debt load, 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. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 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 Wonder Electricals Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Wonder Electricals Limited engages in the manufacture and supply of ceiling, exhaust, pedestal, and TPW and BLDC fans in India.

IndustryFurnishings, Fixtures & Appliances

SectorConsumer Cyclical

Employees178

Annual revenue₹644 Cr

How does it make money?

Turns over ₹644 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹4 left at the operating level before interest, tax and depreciation. Each of its 178 employees supports ₹3.62 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin4.4%

Net margin1.4%

Revenue / employee₹3.62 Cr

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.

HAVELLS INDIA LIMITEDP/E 43.5x · ROE 17.1%

VOLTAS LTDP/E 75.8x · ROE 7.0%

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

What is its competitive advantage?Some evidence

ROCE of 15.9% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE15.9%

ROE8.7%

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 +62% while net margin moved -10% 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+62%

Margin effect-10%

DalalBaazaar Score

51/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 8.7% is weak

Quality vs. Valuation

Company Quality

53/ 100

Average

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

Valuation

47/ 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

80.0x

3Y Median

106.8x

40 monthly readings · mean 140.6x · range 54.6x–266.8x

Sector Median

68.5x

median of 3 sector peers

🟢Current valuation is approximately 25% below its 3y median of 106.8x. 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 17% above the peer median of 68.5x.

vs. its own history

Cheap

106.8x median over 40 months · -25%

vs. sector peers

Fair

68.5x median of 3 peers · +17%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

80.0x

P/B

10.78x

EV/EBITDA

37.2x

PEG

6.08

Dividend Yield

0.28%

What's Good / What's Bad

🟢 What's Going Well3

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Valuation below its historical average
At 80.0x the stock trades 25% below its own median of 106.8x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Debt is rising
Total debt is up 352% over 3 years — worth checking what it funded.
Return on capital is falling
ROCE has declined from 17.9% to 15.9% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 352% over 3 years, from ₹25 Cr to ₹113 Cr.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 4.9x to 2.4x.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 25% 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?

The debt load needs earnings to hold up
Debt is 4.0x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
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 13% a year✓ 17.4% CAGR
Latest reported year was 50.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 2%✓ 4.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 4.0x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Interest cover stays above 3x✗ 2.4x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹17 Cr
Profit that never becomes cash eventually stops being profit.

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

5 good · 4 neutral · 2 weak

Market Cap

₹965 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

80.0x

Expensive

Expensive — verify against sector peers

P/B Ratio

10.78x

Rich

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

EPS (TTM)

₹0.9

Profitable

Profitable on a per-share basis

ROE

8.7%

Moderate

Moderate capital efficiency

ROCE

15.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.08x

Moderate

Moderate leverage

Revenue Growth (YoY)

50.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

275.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.28%

Modest

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

Free Cash Flow

₹17 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹71.99

Operating Margin

3.0%

Weak

Thin margins leave little room for error

Net Margin

1.6%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.23

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.15

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

74.5 / 95.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

36.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹398 Cr	₹562 Cr	₹879 Cr	₹644 Cr	+17.4%
EBITDA	₹17 Cr	₹25 Cr	₹39 Cr	₹28 Cr	+17.8%
EBITDA Margin	4.3%	4.4%	4.5%	4.4%	—
PAT (Net Profit)	₹6 Cr	₹10 Cr	₹19 Cr	₹9 Cr	+13.2%
EPS	₹0.47	₹0.76	₹1.42	₹0.68	+13.2%
ROE	10.6%	11.6%	19.2%	8.7%	—
ROCE	17.9%	19.8%	27.4%	15.9%	—
Total Debt	₹25 Cr	₹65 Cr	₹124 Cr	₹113 Cr	+65.3%
Free Cash Flow	-₹3 Cr	-₹24 Cr	-₹35 Cr	₹17 Cr	—

🟢 Revenue has grown at 17.4% a year over 3 years.

🟢 EBITDA has grown at 17.8% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 4.4% over 3 years.

🟢 PAT (Net Profit) has grown at 13.2% a year over 3 years.

🟢 EPS has grown at 13.2% a year over 3 years.

🔴 ROE has fallen from 10.6% to 8.7% over 3 years (-1.8 pts).

🔴 ROCE has fallen from 17.9% to 15.9% over 3 years (-2.1 pts).

🔴 Total Debt has grown at 65.3% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹3 Cr to ₹17 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹415 Cr

Total Liabilities

₹310 Cr

Total Debt

₹113 Cr

Cash & Equivalents

₹29 Cr

Operating Cash Flow

₹25 Cr

Capex

-₹8 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

83.0%

Corporate Actions

Dividend Rate

₹0.2

Ex-Dividend Date

20 Feb 2026

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 positive2 mixed3 general

Wonder Electricals tanks 30% from high on huge volume; Imagicaaworld up 20%

Business Standard, 27 Aug

Wonder Electricals shares AGM web-link, confirms Sep 25 meeting

scanx.trade, 02 Sept

Wonder Electricals Starts Manufacturing Operations Through Integrated Motion & Control LLP

Sahi, 03 Aug

Wonder Electricals Share Price News on Sharp Price Fall

Univest, 20 AugPrice 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.

Wonder Electricals approves ₹16.50 crore geyser plant acquisition

scanx.trade, 23 SeptM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Wonder Electricals Q1 Results: Net Profit Surges 265% YoY, EBITDA Rises to 90M Rupees

scanx.trade, 12 AugResults

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

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟡Business QualityAdequate10.3/20

🟡Financial HealthAdequate9.6/20

🟢GrowthStrong15.8/20

🔴ProfitabilityWeak4.5/15

🔴ValuationDemanding6.7/15

🔴RiskHigh4.4/10

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. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 13% a year17.4% CAGR
✓EBITDA margin holds above 2%4.4%
✗Debt / EBITDA falls below 3x4.0x
✗Interest cover stays above 3x2.4x
✓Free cash flow remains positive₹17 Cr