The Discounted Cash Flow (DCF) valuation of Wheels India Ltd (WHEELS.NS) is 955.50 INR. With the latest stock price at 796.35 INR, the upside of Wheels India Ltd based on DCF is 20%.

Is WHEELS.NS a buy or a sell?

Based on the latest price of 796.35 INR and our DCF valuation, Wheels India Ltd (WHEELS.NS) is a buy. Buying WHEELS.NS stocks now will result in a potential gain of 20%.

	Range	Selected
WACC / Discount Rate	14.3% - 17.0%	15.7%
Long-term Growth Rate	2.0% - 4.0%	3.0%
Fair Price	780.5 - 1,208.68	955.50
Upside	-2.0% - 51.8%	20.0%

796.35 INR

Stock Price

955.50 INR

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

WHEELS.NS DCF Valuation: Revenue & Expenses Forecast

(INR in millions)		Projections

	03-2025	03-2026	03-2027	03-2028	03-2029	03-2030

Revenue	47,444	50,022	52,807	53,864	54,941	57,750
% Growth	5%	5%	6%	2%	2%	5%

Cost of goods sold	(33,114)	(34,215)	(35,398)	(35,384)	(35,370)	(36,435)
% of Revenue	70%	68%	67%	66%	64%	63%

Selling, G&A expenses	(5,071)	(5,346)	(5,644)	(5,757)	(5,872)	(6,172)
% of Revenue	11%	11%	11%	11%	11%	11%

Research & Development	0	0	0	0	0	0
% of Revenue	0%	0%	0%	0%	0%	0%

Net interest & other expenses	(7,770)	(8,192)	(8,649)	(8,822)	(8,998)	(9,458)
% of Revenue	16%	16%	16%	16%	16%	16%

Tax expense	(367)	(547)	(752)	(941)	(1,134)	(1,372)
Tax rate	25%	24%	24%	24%	24%	24%

Net profit	1,122	1,721	2,365	2,960	3,567	4,313
% Margin	2%	3%	4%	5%	6%	7%