The shares of a small cap company primarily engaged in the manufacture of super abrasives, high precision grinding, honing, special purpose machines, and high precision components jumped around 10 percent in today’s trade after a major global acquisition.
Price Action
The shares of Wendt India Ltd, with a total market capitalization of Rs 1,852.60 Crore on Monday, reached an intraday high at Rs 9,777 per share, gaining around 9.7 percent in the morning session today. As of 11:30 am, the shares retreated from their day’s high and were trading at Rs 9,263 per share, which was 4 percent higher than the previous closing price of Rs 8,914.30 apiece.
What Happened
Wendt India Ltd has informed that the company has completed the Trademark Assignment Agreement with a German-based company, Wendt GmbH, for acquiring the absolute ownership of the “Wendt” brand and trademarks, which includes over 60 registrations in 40 countries, owned by Wendt GmbH and/or its affiliates worldwide. The value of this significant deal is around 3.8 million Euros, which is approximately Rs 34 Crore.
This acquisition enhances Wendt India’s global footprint and strengthens its intellectual property portfolio, further solidifying its market position.
Industry Outlook
The growth of the abrasive market in India will be driven by strong demand across the Electronics, Auto Ancillary, and Defense sectors.
The Indian electronics market is expected to grow at a 25-30 percent CAGR from FY23 to FY30, reaching USD 480-625 billion. The auto ancillary market is projected to grow at 18-20 percent CAGR during FY24 -30, driven by government policies and rising vehicle demand. The Indian aerospace and defense market is set to reach USD 70 billion by FY30.
Additionally, increasing demand for grinding and polishing in metal fabrication, automotive, construction, and electronics will further support the abrasive market.
Business Segments
The company operates across three key segments: Super Abrasive, Machines and Accessories, and Precision Products. In the Super Abrasive segment, it offers grinding wheels, rotary and stationary dressers, hones, and segmented products for industries like automotive, steel, bearings, and engineering.
The Machines and Accessories segment provides honing machines, cylindrical grinders, and surface grinders for steel, engineering, and auto sectors. Its Precision Products segment includes vanes, distance pieces, and tuck point blades, and it is expanding into silicon nitride rollers, rotors, and rings.
Financials
The company reported a slight decline of 2 percent YoY from Rs 54.50 crore in Q3FY24 to Rs 53.40 crore in Q3FY25. Their Net Profit also declined by 14.4 percent YoY from Rs 9.6 crore to Rs 8.22 crore over the same period.
About Wendt India
Wendt India Ltd is a prominent manufacturer of super abrasives, precision grinding tools, and machinery. It serves over 750 direct customers across India and has established a significant presence in international markets through its subsidiary, Wendt Grinding Technologies Limited in Thailand.
Written By Adhvaitha Nayani
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