🧠 1. At a Glance
Excellent Wires has grown its revenue 3x in 3 years and wiped off all debt by FY25. Sounds impressive—until you see negative cash flow, stretched working capital, and stock down 40% from highs. A tiny ₹23 Cr SME trying to prove it’s more than just… adequate.
🎬 2. Hook – “Excellent Naam, Par Performance Ka Wire Loose?”
From spring steel wires to spiral ropes, this company manufactures literally every variant of “wire” under the sun. But while topline zoomed to ₹22 Cr in FY25, net profit is still just ₹1.14 Cr. With margins sub-10% and no dividend, is this just another SME story with good packaging?
🏭 3. WTF Do They Even Do?
🧵 Business Model:
- Manufactures wires: Spring steel, MS, copper, brass, GI, SS, binding, spiral, stitching, etc.
- Brand: “EXCELLENT” (confidence toh hai)
- Industrial clients across packaging, electrical, and general manufacturing
⚙️ Started in March 2021, operates from Gujarat, SME listed on NSE.
📊 4. Financials – Profit Is Thin, But Growing
| Metric (FY25) | Value |
|---|---|
| Revenue | ₹22.19 Cr |
| Net Profit | ₹1.14 Cr |
| OPM | 7.98% |
| ROCE | 12.2% |
| ROE | 9.87% |
| EPS | ₹2.55 |
📈 3-year Revenue CAGR: 45%
📈 3-year Profit CAGR: 184%
But: Growth is from a low base, and margins have dipped YoY.
💰 5. Valuation – Cheap, Meh, or Crack?
- CMP: ₹51.8
- P/E: 20.3x
- Book Value: ₹42.8
- Price/BV: 1.21x
EduFair Value Range™
- EPS of ₹2.55 × P/E 15–18 → FV: ₹38 – ₹46
➡️ FV Range = ₹38 – ₹46
CMP of ₹51.8 is expensive unless FY26 sees >₹1.5 Cr PAT
🔥 6. What’s Cooking – News, Triggers, Drama
- FY25 profit up 37%, revenue up 44%
- Debt = Zero – company repaid entire ₹2.24 Cr loan ✅
- OPM dropped from 9.5% to 8% ❌
- Promoter holding stable at ~65%
- IPO funds (₹12.6 Cr) fully utilized as per filings
Nothing flashy. Growth is silent, but real.
🧾 7. Balance Sheet – How Much Debt, How Many Dreams?
| FY25 Metric | Value |
|---|---|
| Total Equity | ₹19.1 Cr |
| Debt | ₹0.00 Cr ✅ |
| Fixed Assets | ₹4.15 Cr |
| Total Assets | ₹20.05 Cr |
🧾 Small but clean. ROE approaching 10%. Expansion funded through equity (not debt). ✅
💸 8. Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | FCF? |
|---|---|---|
| FY23 | ₹0.01 | Meh |
| FY24 | -₹5.79 | ❌ |
| FY25 | -₹5.79 | ❌ |
Negative operating cash flow despite profit = classic SME issue
Inventory and receivables are eating cash.
📐 9. Ratios – Sexy or Stressy?
| Ratio | FY25 | Trend |
|---|---|---|
| ROE | 9.87% | ↑ |
| ROCE | 12.2% | ↓ from 32% |
| OPM | 8% | ↓ |
| CCC | 124 days | 🚨 |
| Working Cap Days | 141 | 🚨 |
Margins compressing + WC cycle worsening = efficiency risk
💵 10. P&L Breakdown – Show Me the Money
| FY | Revenue (₹ Cr) | PAT (₹ Cr) | OPM % |
|---|---|---|---|
| FY22 | 7.29 | 0.05 | 2.3% |
| FY23 | 14.48 | 0.10 | 2.9% |
| FY24 | 15.41 | 0.83 | 9.5% |
| FY25 | 22.19 | 1.14 | 8.0% |
Nice acceleration, but will growth continue as IPO buzz fades?
🤼 11. Peer Comparison – Who Else in the Game?
| Name | ROE % | P/E | OPM % | Mcap (Cr) |
|---|---|---|---|---|
| Inox India | 29% | 51x | 21.8% | ₹11,283 |
| Esab India | 52.6% | 45x | 17.8% | ₹7,987 |
| Subros | 14.7% | 41x | 9.6% | ₹6,165 |
| Excellent Wires | 9.9% | 20.3x | 8.0% | ₹23.2 |
➡️ Excellent is dirt cheap compared to leaders, but it’s also tiny, illiquid, and margin-light.
🧬 12. Misc – Shareholding, Promoters
- Promoter holding: 65.08% (stable)
- Public float: ~35%
- Number of shareholders: just 571
- No pledging
- Zero dividend history
SME profile. Clean cap table. But highly illiquid.
🧠 13. EduInvesting Verdict™
Excellent Wires is like that local mithai shop that suddenly started franchising.
✅ Growth? Yes.
✅ Clean balance sheet? Yes.
🚫 Cash flow? Nope.
🚫 Margins? Compressing.
🚫 Liquidity? Weak.
📊 Edu FV Range: ₹38–₹46
CMP: ₹51.8 is already pricing in best-case FY26.
Unless profits rise to ₹1.5–2 Cr range, this stock is wrapped in more hope than steel.
✍️ Written by Prashant | 📅 July 1, 2025
Tags: Excellent Wires, SME stocks, industrial wires, steel ropes, zero debt stocks, IPO analysis, EduInvesting
