Debt-free · 3M+CUMI JVQ1 FY27 PAT +62% YoY3Y PAT CAGR −16.8%P/E 62.6 vs peer median 60.8Float ~25% — JV holds 75%
Market Cap
₹1,615 Cr
CMP
₹8,074
ROCE
11.9%
ROE
8.0%
P/E (ttm)
62.6
Revenue TTM
₹223 Cr
PAT TTM
₹26 Cr
D/E
0.00
Promoter (JV)
75% comb.
Div. payout
26%
A1 · Business Model & Moat
screener.in · company disclosures
Founded 1980; JV between Wendt GmbH (3M group) and Carborundum Universal
(Murugappa), each holding 37.5%. Market leader in super abrasives (diamond/CBN tooling),
high-precision grinding and honing machines, and precision components — supplying auto, auto-comp,
aerospace, defence and ceramics customers. Two segments: Super Abrasives (~78% of Q1 FY27 revenue)
and Machines & Accessories.
Moat assessment
Intangibles — strong: 3M technology access + four decades of application engineering.
Switching costs — strong: tooling is qualified into customers' machining processes.
Efficient scale — strong: a duopoly-like niche too small to attract new entrants.
Model quality
Zero borrowings for a decade; consistent 26–48% dividend payout.
Cyclical demand: earnings fell three straight years with the capex/auto cycle.
238 inventory days — the cost of application-specific tooling breadth.
A3 · Opportunity & Recent Developments
cited news
Q1 FY27 (Jun-2026): standalone PAT +62% YoY; Super Abrasives segment revenue ₹41.5 Cr
(vs ₹36.0 Cr) and Machines & Accessories ₹11.7 Cr vs ₹4.3 Cr — the machines rebound is the tell.
[source]
FY26 was the trough: Q4 FY26 PAT −60% YoY despite sequential revenue recovery; ₹10/share dividend held.
[source]
The FY23 peak (OPM 28%) eroded for three years — sales flat, PAT −16.8%/yr. TTM has turned: ₹223 Cr / ₹26 Cr with Q1 FY27 margins re-expanding to 21%.
A8 · Balance Sheet & Fraud Filter
screener.in · FY26
Item
FY26 ₹Cr
FY25 ₹Cr
Equity + Reserves
234
220
Borrowings
0
1
Fixed Assets + CWIP
106
108
Investments
61
49
Total Assets
280
275
Fraud filter
✅CFO quality — CFO ₹33 Cr vs PAT ₹23 Cr (143%) — cash conversion excellent through the downcycle
✅Leverage — zero borrowings
✅Pledge — JV parents — no pledge
⚠️Inventory days — 238 — structural to the model but worth tracking
✅Dividend — paid through the trough, 26% payout
A9 · Quarterly Cadence
screener.in · last 6 quarters (standalone)
Quarter
Sales ₹Cr
YoY
OP ₹Cr
OPM
PAT ₹Cr
Mar-25
70.5
+7.5%
17.9
25%
12.5
Jun-25
47.1
+6.0%
8.4
18%
5.0
Sep-25
50.4
-1.6%
8.4
17%
4.6
Dec-25
54.0
+10.8%
10.1
19%
5.8
Mar-26
57.8
-18.0%
12.9
22%
7.5
Jun-26
61.2
+29.9%
12.7
21%
8.0
Two consecutive quarters of margin ≥21% and the first +30% sales print since the downturn — a recovery, but one quarter old on the sales line.
A10 · Valuation
screener.in peers
Company
Mkt Cap ₹Cr
P/E
ROCE
Timken India
23,521
59.0
18.3%
Grindwell Norton
22,272
51.1
21.2%
Carborundum Uni.
20,274
78.8
10.5%
SKF India Indus.
13,503
36.4
29.9%
Wendt India
1,615
62.6
11.9%
Peer median (8)
10,422
60.8
12.6%
Priced at the peer median while earning below-median returns — the market is paying for the recovery and the JV scarcity (float ~25%), not for current earnings.
A13 · Risks
sorted by severity
HIGH
Recovery must continue
62.6× against a 3-year earnings decline; one weak machines quarter and the multiple has no floor of growth under it.
Mitigant: track segment revenue quarterly
MEDIUM
Cyclicality
demand rides auto/industrial capex; the last downcycle took OPM from 28% to 17%.
Mitigant: diversification into defence/ceramics
MEDIUM
Tiny float
JV parents hold 75%; ₹14.5 Cr/day turnover moves fast both ways.
Mitigant: position sizing
MEDIUM
Inventory
238 days ties a third of the balance sheet in stock.
Mitigant: watch inventory vs sales growth
LOW
Governance
two senior-management cessations disclosed Jul-2026 — routine on evidence so far.
Mitigant: read the AGM disclosures
A14 · Milestones to Watch
research tracking signals — not investment signals
Q2 FY27 machines segment — a second ₹10 Cr+ quarter confirms the capex-cycle read.
OPM ≥21% held for a third quarter.
Super Abrasives growth ≥10% — the core must join the machines rebound.
Any 3M/CUMI JV structural news (the 2019-22 ownership question resurfacing would be a re-rating event either way).
A15 · Ownership
screener.in shareholding
Quarter
Promoter
FII
DII
Public
Mar-25
75.0%
0.1%
6.7%
18.2%
Jun-25
37.5%*
2.4%
9.2%
51.0%
Mar-26
37.5%*
1.0%
12.8%
48.7%
Jun-26
37.5%*
1.2%
12.0%
49.4%
*Classification change Jun-2025: one JV parent reclassified out of the promoter line. Combined 3M (Wendt GmbH) + CUMI holding remains 75% — economic float is unchanged at ~25%. DII participation has doubled since the reclassification.
Part B · Technical Posture
All technical levels are Research Reference Levels from the 25-Jul weekly pipeline (TradingView scanner data) — not buy/sell signals. Regime this week: Pullback in Bear, Swing Confidence 0/3 — every setup is WATCH-ONLY by rule.
Ref Entry
₹8,074.50
Stop · SMA50
₹7,398.71
Target · 52wH
₹10,585
Net R:R
3.69 : 1
This week's top Quick-Move structure: verified 20% band, ₹14.5 Cr/day turnover, stop on a
rising 50-DMA 8.4% below — sized to 42 shares so that width costs 0.998% of capital.
ADR 3.5% (moderate pace) · +8.7% on results day · TradingView weekly consensus buy (MA score 0.40 — the weakest of the five, consistent with a stock exiting a base rather than trending).
Trigger to study: pocket-pivot volume out of the one-month coil. Invalidation: a close below the range low ≈ the stop.
Research Reference Only — Not an Investment Recommendation · Primaegis Research Pipeline
💡 INVESTMENT CASE SUMMARY
Wendt is a debt-free duopoly asset (3M + Murugappa JV, 75% combined) coming off a three-year earnings decline that took PAT from ₹40 Cr to ₹23 Cr. The June-2026 quarter is the first hard evidence of the turn — sales +30%, PAT +62%, machines segment near-tripling — and the chart broke out on it. At 62.6× (peer median 60.8) the recovery is already the base case; the coil above the 50-DMA offers one of the cleanest risk-defined structures on the board while the earnings prove it.
📊 FUNDAMENTAL PILLARS
Franchise quality
duopoly niche, 3M technology, zero debt, 143% cash conversion through the trough. Source: A1/A8
The turn is dated
Q1 FY27: machines ₹11.7 Cr vs ₹4.3 Cr, OPM back to 21% for a second quarter. Source: A9
Scarcity
~25% float with DII share doubling since the reclassification. Source: A15
📈 TECHNICAL POSTURE
Coil above rising 50-DMA
one-month flat range; stop rests pennies under the range low
Best R:R of the week
3.69:1 net to the 52-week high with 0.998% of capital at risk
Weakest MA score of the five
TV weekly 0.40 — base exit, not established trend; needs the breakout to confirm
Fundamentals vs Technicals
ALIGNED
Fresh fundamental turn + fresh technical coil — both young, both pointing the same way.
⚠️ PRIMARY RISKS TO THESIS
One-quarter recovery
a machines-segment giveback in Q2 removes the earnings case at 63×
Cycle relapse
auto/industrial capex rolling over would repeat FY24-26
Float
thin float exaggerates any disappointment
🎯 RESEARCH WATCHLIST VERDICT
WATCH CLOSELY
🔑 Catalyst: pocket-pivot volume out of the coil / Q2 FY27 machines print
⏱ Horizon: Medium-term (3–12M)
Research tracking priority only — not a buy/sell/hold recommendation per SEBI (RA) Regulations 2014
Primaegis Research Opinion · Internal Analyst View
ACCUMULATE
📊 Conviction: Medium
· ⏱ Horizon: Medium-term (3–12M)
🔄 Would change if: machines segment gives back its jump, or OPM drops back below 19%
⚠️ This is an internal, unregulated analytical opinion of Primaegis Research for internal pipeline
use only. It does NOT constitute a SEBI-regulated investment recommendation, research report, or
solicitation to buy, sell, or hold any security. Consult a SEBI-registered investment advisor before
making any financial decision.
⚠️ IMPORTANT DISCLAIMER
This document is a research and educational output only, generated by the Primaegis Research
Investment Analysis Pipeline. Neither Ameya Pimpalgaonkar nor any contributor to this report is a
SEBI registered investment advisor or research analyst. Nothing in this report constitutes
investment advice, a research recommendation, or a solicitation to buy, sell, or hold any security,
fund, or financial instrument under SEBI (Research Analyst) Regulations, 2014 or any other
applicable law. All financial data is sourced from publicly available disclosures (screener.in,
NSE/BSE filings, company releases). All technical levels are reference levels for research tracking
only. Always conduct your own due diligence and consult a SEBI registered investment advisor before
making any financial decision. Generated: 2026-07-25 | Primaegis Research · Not for distribution.