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Check Before You Invest : Ujaas Energy Ltd

BSE: 533644 NSE: UEL ISIN: INE899L01030
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Electric Equipment

Snapshot

Q.1 Which industry/sub-sector does Ujaas Energy Ltd belong to?
Ujaas Energy Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electric Equipment segment.
Q.2 Is Ujaas Energy Ltd a good quality company?
Ujaas Energy Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Ujaas Energy Ltd undervalued or overvalued?
Ujaas Energy Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 611.34 -
Price to Book 21.82 1.18
Price to Sales 116.26 2.06
EV to EBITDA 357.82 52.30
Q.4 Is Ujaas Energy Ltd a good buy now?
Ujaas Energy Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Ujaas Energy Ltd?
Ujaas Energy Ltd revenue growth is 0.8% for FY-2025, which is above its 5-year CAGR of -11.94%, indicating faster growth.

Q.2 Gross Profit margin of Ujaas Energy Ltd?
Ujaas Energy Ltd Gross profit margin which is the profit after deduction of direct costs, is 42.8% for FY-2025, which is above its 5-year median of -32.5%, indicating increasing margins.

Q.3 Operating Profit Margin of Ujaas Energy Ltd?
Ujaas Energy Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 16.42% for FY-2025, which is above its 5-year median of -0.19% indicating increasing margins.

Q.4 Net Profit Margin of Ujaas Energy Ltd?
Ujaas Energy Ltd Net Profit Margin is 32.86% for FY-2025, is above its 5-year median of -59.88%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 42.8 -32.5
Operating Profit Margin (%) 16.42 -0.19
Net Profit Margin (%) 32.86 -59.88

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Ujaas Energy Ltd?
Ujaas Energy Ltd Return on Asset is 8.84%, which is above its 5-year historical median of -5.92%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Ujaas Energy Ltd?
Ujaas Energy Ltd Return on capital employed is 10.45% for FY-2025, which is above its 5-year historical median of -2.02%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 13.5%, indicating value preservation.

Q.7 Return on Equity (ROE) of Ujaas Energy Ltd?
Ujaas Energy Ltd Return on equity is 10.14% for FY-2025, which is above its 5-year historical median of -15.78%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Ujaas Energy Ltd?
Ujaas Energy Ltd Cash conversion cycle is 467 days, below its 5-year historical median of 1028 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.27 0.13
ROE (%) 10.14 -15.78
ROCE (%) 10.45 -2.02
Cash Conversion Cycle 467 days 1028 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Ujaas Energy Ltd?
Ujaas Energy Ltd Debt-to-Equity ratio is 0.28, which is lower the industry average of 0.29, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Ujaas Energy Ltd?
Ujaas Energy Ltd Debt to cash flow from operations is 8.64, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Ujaas Energy Ltd?

Q.1 Promoter shareholding and pledge status of Ujaas Energy Ltd?
Promoters hold 74.96% of the Ujaas Energy Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Ujaas Energy Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Ujaas Energy Ltd vs industry peers?
Ujaas Energy Ltd revenue CAGR is -11.94%, compared to the industry median CAGR of 13.01%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 0.8 13
Gross Profit Growth (%) -25 27.9
Operating Profit Growth (%) 0 28.4
Net Profit Growth (%) -69 28.5
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.27 1.06
ROE (%) 10.14 9.8
ROCE (%) 10.45 13.55
Cash Conversion Cycle (days) 467.49 99

Valuation & price assessment

Q.1 Stock return of Ujaas Energy Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 34.7% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
34.7% 175.3% 514.5% -3.3%
Q.2 Valuation ratios of Ujaas Energy Ltd vs historical?
The current P/E ratio of 611.34 is higher than its historical median of , indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 611.34 - 38.08
Price to Book 21.82 1.18 3.97
Price to Sales 116.26 2.06 2.75
EV to EBITDA 357.82 52.30 18.75

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