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Check Before You Invest : Uni Abex Alloy Products Ltd

BSE: 504605 NSE: ISIN: INE361D01012
  |   Sector:  Automobiles   |   Industry:  Castings/Forgings

Snapshot

Q.1 Which industry/sub-sector does Uni Abex Alloy Products Ltd belong to?
Uni Abex Alloy Products Ltd belongs to the Automobiles sector, operating specifically within the Castings/Forgings segment.
Q.2 Is Uni Abex Alloy Products Ltd a good quality company?
Uni Abex Alloy Products Ltd is a good quality company, based on a consistently good 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 Uni Abex Alloy Products Ltd undervalued or overvalued?
Uni Abex Alloy Products 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 18.91 14.70
Price to Book 4.2 3.69
Price to Sales 3.28 2.39
EV to EBITDA 12.62 9.48
Q.4 Is Uni Abex Alloy Products Ltd a good buy now?
Uni Abex Alloy Products 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 Uni Abex Alloy Products Ltd?
Uni Abex Alloy Products Ltd revenue growth is 7.3% for FY-2025, which is below its 5-year CAGR of 13.52%, indicating slower growth.

Q.2 Gross Profit margin of Uni Abex Alloy Products Ltd?
Uni Abex Alloy Products Ltd Gross profit margin which is the profit after deduction of direct costs, is 26% for FY-2025, which is above its 5-year median of 19.2%, indicating increasing margins.

Q.3 Operating Profit Margin of Uni Abex Alloy Products Ltd?
Uni Abex Alloy Products Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 22.78% for FY-2025, which is above its 5-year median of 19.82% indicating increasing margins.

Q.4 Net Profit Margin of Uni Abex Alloy Products Ltd?
Uni Abex Alloy Products Ltd Net Profit Margin is 17.39% for FY-2025, is above its 5-year median of 11.36%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 26 19.2
Operating Profit Margin (%) 22.78 19.82
Net Profit Margin (%) 17.39 11.36

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Uni Abex Alloy Products Ltd?
Uni Abex Alloy Products Ltd Return on Asset is 17.48%, which is above its 5-year historical median of 14.37%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Uni Abex Alloy Products Ltd?
Uni Abex Alloy Products Ltd Return on capital employed is 32.5% for FY-2025, which is above its 5-year historical median of 30.89%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Uni Abex Alloy Products Ltd?
Uni Abex Alloy Products Ltd Return on equity is 26.35% for FY-2025, which is in line with its 5-year historical median of 25.13%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Uni Abex Alloy Products Ltd?
Uni Abex Alloy Products Ltd Cash conversion cycle is 49 days, below its 5-year historical median of 53 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) 1.01 1.14
ROE (%) 26.35 25.13
ROCE (%) 32.5 30.89
Cash Conversion Cycle 49 days 53 days

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

Q.9 Debt to Equity ratio of Uni Abex Alloy Products Ltd?
Uni Abex Alloy Products Ltd Debt-to-Equity ratio is 0.08, which is lower the industry average of 0.28, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Uni Abex Alloy Products Ltd?
Uni Abex Alloy Products Ltd Debt to cash flow from operations is 0.32, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Uni Abex Alloy Products Ltd?

Q.1 Promoter shareholding and pledge status of Uni Abex Alloy Products Ltd?
Promoters hold 63.63% of the Uni Abex Alloy Products Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Uni Abex Alloy Products Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Uni Abex Alloy Products Ltd vs industry peers?
Uni Abex Alloy Products Ltd revenue CAGR is 13.52%, compared to the industry median CAGR of 7.17%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 7.3 7.2
Gross Profit Growth (%) -5.7 22.1
Operating Profit Growth (%) -10.2 17.9
Net Profit Growth (%) -2.9 32
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.01 1.2
ROE (%) 26.35 9.78
ROCE (%) 32.5 11.21
Cash Conversion Cycle (days) 48.89 73

Valuation & price assessment

Q.1 Stock return of Uni Abex Alloy Products Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 24.8% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
24.8% 50.3% 44.3% 21.2%
Q.2 Valuation ratios of Uni Abex Alloy Products Ltd vs historical?
The current P/E ratio of 18.91 is higher than its historical median of 14.70, 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 18.91 14.70 21.74
Price to Book 4.2 3.69 2.46
Price to Sales 3.28 2.39 1.52
EV to EBITDA 12.62 9.48 11.88

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