At a Glance
CWD Ltd is a BSE-listed wireless tech company offering smart IoT hardware like weather sensors, NFC devices, and AMI meters. With barely ₹33 Cr in revenue and ₹2.5 Cr in profit, it’s trading at a P/E of 189 and P/B of 8+. Why? Orders are coming in, and dreams are wireless.
1. 🧨 Introduction with Hook
When your sales = ₹33 Cr, profit = ₹2.5 Cr, and stock = ₹1,250…
You better have invented ChatGPT or India’s first Tesla.
But no — CWD makes sensors, IoT devices, and Bluetooth tags. And yet:
- P/E = 189
- P/B = 8.13
- ROE = 5.78%
- Receivables = 190 days
Is this India’s Apple or just a nicely packed speculative IoT story?
Let’s open the hood.
2. 📡 WTF Do They Even Do?
CWD = Connected Wireless Devices. And yes, that’s the actual name.
They design and manufacture:
- 📦 Smart meters (AMI)
- 🌦️ Smart weather sensors
- 📶 Bluetooth, Zigbee, LoRa, NB-IoT devices
- 🔧 Custom-designed IoT solutions for enterprises
Tech stack is solid — everything from BLE to LTE Cat M1.
They also offer:
- Electronics product design for OEMs
- End-to-end solutioning (hardware + software)
Business Segments:
- Consumer Electronics
- Enterprise Wireless Solutions
Biggest recent wins:
- ₹9 Cr Goa Govt Smart Meter project
- ₹8 Cr smart weather sensors order
3. 📈 Financials – Profit, Margins, ROE, Growth
| Metric | FY25 (TTM) |
|---|---|
| Revenue | ₹32.9 Cr |
| Net Profit | ₹2.5 Cr |
| Operating Margin | 21.6% |
| ROCE | 11.7% |
| ROE | 5.78% |
| EPS | ₹6.61 |
| Dividend | Nil |
📈 TTM profit growth = 118%
📉 3Y profit CAGR = -7%
📉 Debtor Days = 190 → 🤕 cash stuck
4. 💸 Valuation – Is It Cheap, Meh, or Crack?
| Metric | Value |
|---|---|
| CMP | ₹1,250 |
| P/E | 189x |
| Book Value | ₹154 |
| P/B | 8.13x |
| Market Cap | ₹474 Cr |
🎯 FV Range = ₹300–₹450
Assume FY26 profit hits ₹5 Cr (based on order wins + execution)
At 40–45x earnings for niche IoT biz = ₹450 Cr valuation
So, CMP is pricing in 3–4 years forward earnings already.
5. ⚙️ What’s Cooking – News, Triggers, Drama
🔥 Recent Announcements:
- ✅ ₹9 Cr smart meter project win from Goa Govt (10-year contract)
- ✅ ₹8 Cr order for smart weather sensors (scalable to ₹40 Cr)
- ✅ July 2025: Preferential allotment at ₹747/share to non-promoters
- ✅ Equity expanded to ₹4.39 Cr via conversion
🧠 The company’s pushing big-time into govt infra-linked IoT
Potential Triggers:
- 🔌 Expansion into smart grids, railways
- 📡 Large-scale LoRa/5G-enabled sensors
- 🔄 M&A or stake by hardware/energy players
6. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY25 |
|---|---|
| Equity Capital | ₹3.8 Cr → ₹4.39 Cr post recent issue |
| Reserves | ₹54.6 Cr |
| Borrowings | ₹8.6 Cr |
| Other Liabilities | ₹17.6 Cr |
| Total Assets | ₹84.6 Cr |
| Fixed Assets | ₹12.6 Cr |
🟢 Decent equity base
🔴 Short-term liabilities rising (execution-heavy biz)
🔴 High debtors and inventory = working capital stress
7. 💵 Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY25 | ₹2.72 Cr | -₹2.70 Cr | ₹21.9 Cr | ₹21.91 Cr |
| FY24 | -₹4.5 Cr | -₹3.13 Cr | ₹12.2 Cr | ₹4.54 Cr |
🧠 Positive cash this year — but funded by equity
🔻 Still not self-sustaining
8. 📊 Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROCE | 11.7% |
| ROE | 5.78% |
| Debtor Days | 190 |
| Inventory Days | 566 |
| CCC (Cash Cycle) | 378 days 😬 |
| OPM | 21.6% |
🧠 Execution risk is real — high inventory, delayed collections
9. 📉 P&L Breakdown – Show Me the Money
| Year | Sales | Profit | EPS | OPM |
|---|---|---|---|---|
| FY22 | ₹15 Cr | ₹3.1 Cr | ₹8.58 | 33.7% |
| FY24 | ₹17.7 Cr | ₹1.15 Cr | ₹3.18 | 30% |
| FY25 | ₹32.9 Cr | ₹2.5 Cr | ₹6.61 | 21.6% |
📈 Sales are growing again
📉 Margins compressing → competitive pressure + higher costs
10. 🧿 Peer Comparison – Who Else in the Game?
| Company | CMP | P/E | ROE | OPM |
|---|---|---|---|---|
| Havells | ₹1,528 | 65x | 19% | 10% |
| Dixon | ₹15,786 | 123x | 33% | 3.9% |
| Cellecor Gadgets | ₹34.65 | 24x | 25% | 5.3% |
| CWD Ltd | ₹1,250 | 189x | 5.78% | 21.6% |
🧠 CWD has highest margins but worst ROE + most expensive P/E
11. 🧩 Miscellaneous – Shareholding, Promoters
| Category | % Holding |
|---|---|
| Promoters | 72.29% |
| Public | 27.7% |
| DII/FII | 0% |
| Shareholders | 826 |
📈 Retail base slowly expanding
🧾 Promoters did not dilute in latest issue (allotted to non-promoters)
12. 🧑⚖️ EduInvesting Verdict™
CWD has:
✅ Smart product portfolio
✅ Govt project momentum
✅ Strong margins
✅ Good narrative (5G, IoT, smart grid)
BUT ALSO:
❌ 189x P/E
❌ 190-day receivables
❌ Sub-6% ROE
❌ Equity dilutions every year
🎯 Fair Value = ₹300–₹450 (based on ₹5–7 Cr sustainable profit at 40–45x)
📉 CMP = ₹1,250 = pricing in a 10X scale-up instantly
Verdict™:
CWD’s pitch is smart, but its price assumes it already won 10 smart city tenders and replaced Dixon. Which it hasn’t. Yet.
Unless they post back-to-back ₹5 Cr+ quarterly profits — this remains a high-risk, low-ROE moonshot.
✍️ Written by Prashant | 📅 11 July 2025
Tags: CWD Ltd, IoT stocks, smart meter companies, 5G device makers, SME tech stocks, smart city stocks, BLE LoRa Zigbee India, high PE stocks, EduInvesting
