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Check Before You Invest : Universal Auto Foundry Ltd

BSE: 539314 NSE: ISIN: INE203T01012
  |   Sector:  Automobiles   |   Industry:  Castings/Forgings

Snapshot

Q.1 Which industry/sub-sector does Universal Auto Foundry Ltd belong to?
Universal Auto Foundry Ltd belongs to the Automobiles sector, operating specifically within the Castings/Forgings segment.
Q.2 Is Universal Auto Foundry Ltd a good quality company?
Universal Auto Foundry Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Universal Auto Foundry Ltd undervalued or overvalued?
Universal Auto Foundry Ltd appears Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is Universal Auto Foundry Ltd a good buy now?
Universal Auto Foundry 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

Q.1 Revenue growth of Universal Auto Foundry Ltd?
Universal Auto Foundry Ltd revenue growth is -4.5% for FY-2025 , which is below its 5 year CAGR of 17% , indicating slower growth.
Q.2 Gross Profit margin of Universal Auto Foundry Ltd?
Universal Auto Foundry Ltd Gross profit margin which is the profit after deduction of direct costs, is 7.1% for FY-2025 , which is in line with its 5 year median of 7.1% , indicating stable margins.
Q.3 Operating Profit Margin of Universal Auto Foundry Ltd?
Universal Auto Foundry Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 8.51% for FY-2025 , which is in line with its 5 year median of 8.51% indicating stable margins.
Q.4 Net Profit Margin of Universal Auto Foundry Ltd?
Universal Auto Foundry Ltd Net Profit Margin is 1.22% for FY-2025 , is below with its 5 year median of 1.61%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 7.1 7.1
Operating Profit Margin 8.51 8.51
Net Profit Margin 1.22 1.61
Q.5 Return on Asset of Universal Auto Foundry Ltd?
Universal Auto Foundry Ltd Return on Asset is 1.74%, which is below its 5 year historical median of 2.52%, indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Universal Auto Foundry Ltd?
Universal Auto Foundry Ltd Return on equity is 3.4% for FY-2025 , which is below its historical median of 7.76%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Universal Auto Foundry Ltd?
Universal Auto Foundry Ltd Return on capital employed is 5.69% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Universal Auto Foundry Ltd?
Universal Auto Foundry Ltd Cash conversion cycle is 88 days, above its historical median of 58 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.43 1.56
ROE 3.4 7.76
ROCE 5.69 7.37
Cash Conversion Cycle 88 days 58 days
Q.9 Debt to Equity ratio of Universal Auto Foundry Ltd?
Universal Auto Foundry Ltd Debt-to-Equity ratio is 0.65 , which is above with the industry average of 0.34 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Universal Auto Foundry Ltd?
Universal Auto Foundry Ltd Debt to cash flow from operations is 9.24 , which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Universal Auto Foundry Ltd?
Promoters hold 48.12% of the Universal Auto Foundry Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Universal Auto Foundry Ltd vs industry peers?
Universal Auto Foundry Ltd revenue CAGR is 16.97% , compared to the industry median CAGR of 7.48% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 193.4 138.5
Gross Profit 13.7 12.1
Operating Profit 16.5 13.6
Net Profit 2.4 5.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.43 1.22
ROE 3.4 9.98
ROCE 5.69 12.36
Cash Conversion Cycle (days) 88.13 78

Valuation & price assessment

Q.1 Stock return of Universal Auto Foundry Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 7.8% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 7.8% 20.2% -27.5% -12.4%
Q.3 Valuation ratios of Universal Auto Foundry Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 119.76 32.88 38.01
Price to Book 1.01 2.77 2.45
Price to Sales 0.37 0.66 1.59
EV to EBITDA 8.51 12.27 12.17

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