Wires and Fabriks (S.A.) Limited

Industrials — Specialty Industrial Machinery · BSE

₹150.00₹0.00 (0.00%)

DalalBaazaar Score

38 / 100

🔴 Weak

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, with modest growth. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:48 pm

Understanding the Business

Company site ↗

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

What does this company do?

Wires and Fabriks (S.A.) Limited manufactures and sells paper machine clothing in India and internationally.

IndustrySpecialty Industrial Machinery

SectorIndustrials

Employees232

Annual revenue₹115 Cr

How does it make money?

Turns over ₹115 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹20 left at the operating level before interest, tax and depreciation. Each of its 232 employees supports ₹49.6 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹49.6 lakh

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, LARSEN & TOUBRO LTD., HAVELLS INDIA 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 6.5% 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 ROE17.1%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +6% while net margin moved -81% 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+6%

Margin effect-81%

DalalBaazaar Score

38/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 2.1% — barely ahead of inflation
✗ Profit has declined at 41.8% a year

Quality vs. Valuation

Company Quality

37/ 100

Weak

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.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

153.1x

3Y Median

37.4x

40 monthly readings · mean 52.1x · range 24.9x–193.8x

Sector Median

66.2x

median of 4 sector peers

⚠️Current valuation is approximately 309% above its 3y median of 37.4x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 131% above the peer median of 66.2x.

vs. its own history

Expensive

37.4x median over 40 months · +309%

vs. sector peers

Expensive

66.2x median of 4 peers · +131%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

6.7x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 16.9% to 19.5% over 3 years.
Cash generation is improving
Free cash flow is up 148% 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

5 items require attention · 3 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 2.08x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.1x — little room if earnings dip.
🔴Receivables growing faster than salesFinancial
Receivables up 57% against revenue up 6% — sales are being booked faster than they are collected.
🟡Debt is increasingFinancial
Total debt is up 43% over 3 years.
🟡Profit is decliningFinancial
Net profit is down 80% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 16.9% to 19.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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 4.7x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 57% against revenue up 6%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 309% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Growth barely outpaces inflation
Revenue compounding at 2.1% 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 18%✓ 19.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 4.7x
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✗ 1.1x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 4% a year✗ 2.1% CAGR
Latest reported year was 4.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹29 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

4 good · 3 neutral · 4 weak

Market Cap

₹46 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

153.1x

Expensive

Expensive — verify against sector peers

P/B Ratio

0.91x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.98

Profitable

Profitable on a per-share basis

ROE

0.5%

Weak

Weak capital efficiency

ROCE

6.5%

Weak

Low return on total capital employed

Debt/Equity

2.08x

High

High leverage

Revenue Growth (YoY)

4.3%

Modest

Modest growth

Profit Growth (YoY)

300.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.07%

Modest

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

Free Cash Flow

₹29 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

5.1%

Average

Average margins

Net Margin

0.3%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.26

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.15

Defensive

Steadier than the market

52W Range Position

30%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

161.4 / 154.1

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

0.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹108 Cr	₹108 Cr	₹109 Cr	₹115 Cr	+2.1%
EBITDA	₹18 Cr	₹16 Cr	₹18 Cr	₹22 Cr	+7.0%
EBITDA Margin	16.9%	15.0%	16.6%	19.5%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹2 Cr	₹0 Cr	-41.8%
EPS	₹4.39	₹4.87	₹4.92	₹0.86	-41.9%
ROE	2.8%	3.0%	3.0%	0.5%	—
ROCE	5.5%	5.5%	6.0%	6.5%	—
Total Debt	₹74 Cr	₹82 Cr	₹126 Cr	₹105 Cr	+12.7%
Free Cash Flow	₹12 Cr	-₹6 Cr	-₹38 Cr	₹29 Cr	+35.3%

🟢 Revenue has grown at 2.1% a year over 3 years.

🟢 EBITDA has grown at 7.0% a year over 3 years.

🟢 EBITDA Margin has risen from 16.9% to 19.5% over 3 years (+2.6 pts).

🔴 PAT (Net Profit) has shrunk at 41.8% a year over 3 years.

🔴 EPS has shrunk at 41.9% a year over 3 years.

🔴 ROE has fallen from 2.8% to 0.5% over 3 years (-2.3 pts).

🟡 ROCE has held roughly flat at 6.5% over 3 years.

🔴 Total Debt has grown at 12.7% a year over 3 years.

🟢 Free Cash Flow has grown at 35.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹186 Cr

Total Liabilities

₹135 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹30 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

84.3%

Corporate Actions

Dividend Rate

₹0.1

Ex-Dividend Date

22 Jul 2026

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
LARSEN & TOUBRO LTD.	30.1x	15.2%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

1 negative5 general

Wires & Fabriks (S.A) Ltd is Rated Strong Sell

MarketsMojo, 16 Oct

Wires & Fabriks (S.A.) Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 03 Sept

Wires and Fabriks (S.A.) Limited (BSE: WIREFABR) Business Outlook

Kalkine India, 10 Sept

Wires & Fabriks (S.A) standalone net profit declines 51.61% in the March 2026 quarter

Business Standard, 29 MayResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Wires and Fabriks Issues Regulatory Disclosure on Share Transfer Window and Investor Campaign

scanx.trade, 24 Apr

WIRES & FABRIKS (SA) LTD. Share Price

Upstox, 22 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

MiddlingBusiness Quality · Financial Health

WeakGrowth · Profitability · Valuation · 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. 3 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Interest cover stays above 3x; Revenue growth stays above 4% a year · see Key things to watch ↑