1. At a Glance
Windsor Machines Ltd is a veteran in the plastic processing machinery game. While their machines mould plastic, their balance sheet has been trying to mould a comeback. Between promoter exits, preferential allotments, and a not-so-smooth acquisition, it’s a full-on soap opera in polypropylene.
2. Introduction with Hook
Imagine a Bollywood family drama, but everyone works in a factory making injection moulding machines. There’s the legacy (started in 1963), the twist (new promoters via GCON acquisition), the betrayal (promoter selling stake at ₹30–₹40 while stock hits ₹180), and the suspense (can growth really outpace dilution?).
- Market Cap: ₹498 Cr
- Current Price: ₹117
- High/Low (52W): ₹200 / ₹50
- Stock P/E: 34
- Book Value: ₹60
Spoiler alert: the story has more turns than a polymer extrusion line.
3. Business Model (WTF Do They Even Do?)
Windsor Machines is in the business of:
- Injection Moulding Machines (IMM): Used for everything from toys to auto parts.
- Blown Film Extrusion Machines: Think plastic packaging, carry bags, and industrial films.
- Pipe Extrusion Systems: For manufacturing plastic pipes (PVC, HDPE).
Their clientele? Packaging, agriculture, automotive, medical, FMCG, and infrastructure.
Revenue split (estimated):
- IMM: ~55%
- Blown Film: ~30%
- Pipe Extrusion: ~15%
The problem isn’t relevance. It’s consistency.
4. Financials Overview
Annual Revenue (FY25): ₹319 Cr
Operating Profit: ₹16 Cr
Net Profit: ₹11 Cr
OPM: ~5%
ROE: 8.2%
Debt: Practically nil (debt-free flex)
The good news: Revenue is recovering.
The bad news: Profit growth is wobblier than a cheap plastic chair.
5. Valuation
Let’s whip out the fair value microscope:
Method 1: PE Valuation
EPS (FY25): ₹2.50
Reasonable P/E: 20–25
➡️ FV Range: ₹50–₹62.5
Method 2: EV/EBITDA
EV: ₹470 Cr
EBITDA: ₹25 Cr
EV/EBITDA: ~19x
Peers like L&T, Milacron trade 14–20x
➡️ Implied FV Range: ₹90–₹120
Method 3: DCF (Back-of-envelope)
Growth: 10%, WACC: 12%
FV Range: ₹70–₹95
🧠 Final EduInvesting FV Range: ₹65 to ₹95
(Yes, it hit ₹200. No, that wasn’t sustainable. Plastic inflated, earnings didn’t.)
6. What’s Cooking – News, Triggers, Drama
- Preferential Allotment: Allotment to GCON Promoters at ₹30–₹40.
- Acquisition: Global CNC (unlisted) injected as a subsidiary in FY24 — will it add alpha or drag Windsor like a dead battery?
- Promoter Exit: Previous promoter selling stake while price rallied. Always a red flag.
- Volume Spike: Suspicious surges — operator game or genuine interest?
🔔 Trigger to watch: Will Global CNC contribute enough in FY26 to justify the market cap?
7. Balance Sheet
| Item | FY23 | FY24 | FY25E |
|---|---|---|---|
| Equity Capital | ₹20 Cr | ₹25 Cr | ₹30 Cr |
| Reserves | ₹145 Cr | ₹160 Cr | ₹180 Cr |
| Borrowings | ₹0 Cr | ₹0 Cr | ₹0 Cr |
| Total Assets | ₹240 Cr | ₹260 Cr | ₹300 Cr |
🧾 Key Points
- Debt-free
- Reserves rising slowly
- Equity dilution alert due to preferential issues
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Flow |
|---|---|---|---|---|
| FY23 | ₹6 Cr | ₹-12 Cr | ₹-2 Cr | ₹-8 Cr |
| FY24 | ₹9 Cr | ₹-6 Cr | ₹5 Cr | ₹8 Cr |
| FY25E | ₹11 Cr | ₹-8 Cr | ₹0 Cr | ₹3 Cr |
💸 Takeaways
- CFO is consistent, if small
- Investment-heavy in FY23–24 (Global CNC acquisition)
- No major debt, healthy pattern — but thin cushion
9. Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25E |
|---|---|---|---|
| ROE | 7.1% | 8.2% | 9.5% |
| ROCE | 9.3% | 10.6% | 11.5% |
| OPM | 5.2% | 6.1% | 6.5% |
| EPS | ₹1.9 | ₹2.2 | ₹2.5 |
| P/E | 60x | 53x | 47x |
⚠️ High PE, low EPS = Risky setup
🏃 Growth needs to outrun dilution
10. P&L Breakdown – Show Me the Money
| Year | Revenue | OPM | PAT | EPS |
|---|---|---|---|---|
| FY22 | ₹290 Cr | 4.5% | ₹9 Cr | ₹1.6 |
| FY23 | ₹302 Cr | 5.2% | ₹11 Cr | ₹1.9 |
| FY24 | ₹319 Cr | 6.1% | ₹13 Cr | ₹2.2 |
| FY25E | ₹345 Cr | 6.5% | ₹15 Cr | ₹2.5 |
🤨 EPS barely budging despite topline growth.
A ₹500 Cr market cap needs juicier numbers.
11. Peer Comparison
| Company | CMP | Mcap | OPM | ROE | P/E |
|---|---|---|---|---|---|
| Windsor | ₹117 | ₹498 Cr | 6.1% | 8.2% | 47x |
| L&T | ₹3,700 | ₹6.8 Lakh Cr | 14% | 17% | 28x |
| Milacron India | Unlisted | — | 10%+ | 15% | — |
| TPR Autoplast | ₹410 | ₹1,500 Cr | 12% | 12% | 32x |
🆚 Verdict: Windsor = Small fish, big expectations. PE too hot for current fundamentals.
12. Miscellaneous – Shareholding, Promoters
| Category | Jun 2024 |
|---|---|
| Promoters (GCON) | 43.5% |
| Public | 56.5% |
| FII / DII | Nil |
| Retail HNI | High buzz |
| Mutual Funds | Zero interest |
⚠️ Absence of institutional buyers says a lot.
📉 Promoter exit + dilution + operator vibes = exercise caution.
13. EduInvesting Verdict™
Windsor Machines has all the ingredients of a multibagger fairy tale — legacy brand, zero debt, Global CNC acquisition, and plastics as a theme. But scratch the surface, and you see a company fighting to prove earnings, while the stock price already assumes the fairy tale ending.
Preferential allotments at ₹30–₹40 to insiders followed by retail frenzy at ₹180? Classic “you fund my exit” model.
This is not a plastic machine. It’s a hope machine.
Final Words:
Until earnings catch up, Windsor remains a high-stakes polymer play — equal parts opportunity and operator bait.
Metadata
– Written by EduInvesting Team | July 18, 2025
– Tags: Windsor Machines, GCON Acquisition, Plastic Machinery, Small Cap, High P/E, Preferential Allotment
