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Check Before You Invest : United Polyfab Gujarat Ltd

BSE: 544756 NSE: UNITEDPOLY ISIN: INE368U01029
  |   Sector:  Textiles & Apparels   |   Industry:  Textile - Weaving

Snapshot

Q.1 Which industry/sub-sector does United Polyfab Gujarat Ltd belong to?
United Polyfab Gujarat Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile - Weaving segment.
Q.2 Is United Polyfab Gujarat Ltd a good quality company?
United Polyfab Gujarat Ltd is a weak quality company, based on a inconsistent 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 United Polyfab Gujarat Ltd undervalued or overvalued?
United Polyfab Gujarat 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 33.43 30.13
Price to Book 6.08 3.21
Price to Sales 1.19 0.32
EV to EBITDA 17.12 10.19
Q.4 Is United Polyfab Gujarat Ltd a good buy now?
United Polyfab Gujarat Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. 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 United Polyfab Gujarat Ltd?
United Polyfab Gujarat Ltd revenue growth is -33.7% for FY-2025, which is below its 5-year CAGR of 17.92%, indicating slower growth.

Q.2 Gross Profit margin of United Polyfab Gujarat Ltd?
United Polyfab Gujarat Ltd Gross profit margin which is the profit after deduction of direct costs, is 5.7% for FY-2025, which is above its 5-year median of 3.7%, indicating increasing margins.

Q.3 Operating Profit Margin of United Polyfab Gujarat Ltd?
United Polyfab Gujarat Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.27% for FY-2025, which is above its 5-year median of 5% indicating increasing margins.

Q.4 Net Profit Margin of United Polyfab Gujarat Ltd?
United Polyfab Gujarat Ltd Net Profit Margin is 2.94% for FY-2025, is above its 5-year median of 0.84%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 5.7 3.7
Operating Profit Margin (%) 7.27 5
Net Profit Margin (%) 2.94 0.84

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of United Polyfab Gujarat Ltd?
United Polyfab Gujarat Ltd Return on Asset is 7.24%, which is above its 5-year historical median of 3%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of United Polyfab Gujarat Ltd?
United Polyfab Gujarat Ltd Return on capital employed is 15.11% for FY-2025, which is above its 5-year historical median of 11.52%. 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 United Polyfab Gujarat Ltd?
United Polyfab Gujarat Ltd Return on equity is 20% for FY-2025, which is above its 5-year historical median of 9.47%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of United Polyfab Gujarat Ltd?
United Polyfab Gujarat Ltd Cash conversion cycle is 68 days, above its 5-year historical median of 38 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 2.46 3.2
ROE (%) 20 9.47
ROCE (%) 15.11 11.52
Cash Conversion Cycle 68 days 38 days

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

Q.9 Debt to Equity ratio of United Polyfab Gujarat Ltd?
United Polyfab Gujarat Ltd Debt-to-Equity ratio is 1.22, which is above the industry average of 0.82, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of United Polyfab Gujarat Ltd?
United Polyfab Gujarat Ltd Debt to cash flow from operations is 6.08, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of United Polyfab Gujarat Ltd?

Q.1 Promoter shareholding and pledge status of United Polyfab Gujarat Ltd?
Promoters hold 51.51% of the United Polyfab Gujarat Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does United Polyfab Gujarat Ltd performance compare with that of its Peers?

Q.1 Revenue growth of United Polyfab Gujarat Ltd vs industry peers?
United Polyfab Gujarat Ltd revenue CAGR is 17.92%, compared to the industry median CAGR of 0.00%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -33.7 0
Gross Profit Growth (%) 36 19.3
Operating Profit Growth (%) 37.5 15.8
Net Profit Growth (%) 157.1 26.4
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 2.46 1.3
ROE (%) 20 0.02
ROCE (%) 15.11 7.09
Cash Conversion Cycle (days) 67.74 92

Valuation & price assessment

Q.1 Stock return of United Polyfab Gujarat Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 22.51% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- 22.5% -29.9% 104.1%
Q.2 Valuation ratios of United Polyfab Gujarat Ltd vs historical?
The current P/E ratio of 33.43 is higher than its historical median of 30.13, 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 33.43 30.13 16.13
Price to Book 6.08 3.21 1.38
Price to Sales 1.19 0.32 0.53
EV to EBITDA 17.12 10.19 9.19

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