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Check Before You Invest : Universal Cables Ltd

BSE: 504212 NSE: UNIVCABLES ISIN: INE279A01012
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Cable

Snapshot

Q.1 Which industry/sub-sector does Universal Cables Ltd belong to?
Universal Cables Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Cable segment.
Q.2 Is Universal Cables Ltd a good quality company?
Universal Cables 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 Universal Cables Ltd undervalued or overvalued?
Universal Cables 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 38.98 28.21
Price to Book 4.29 2.14
Price to Sales 1.39 0.73
EV to EBITDA 18.03 12.13
Q.4 Is Universal Cables Ltd a good buy now?
Universal Cables 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 Universal Cables Ltd?
Universal Cables Ltd revenue growth is 19.2% for FY-2025, which is above its 5-year CAGR of 8.95%, indicating faster growth.

Q.2 Gross Profit margin of Universal Cables Ltd?
Universal Cables Ltd Gross profit margin which is the profit after deduction of direct costs, is 4.1% for FY-2025, which is in line with its 5-year median of 4.1%, indicating stable margins.

Q.3 Operating Profit Margin of Universal Cables Ltd?
Universal Cables Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.23% for FY-2025, which is in line with its 5-year median of 7.23% indicating stable margins.

Q.4 Net Profit Margin of Universal Cables Ltd?
Universal Cables Ltd Net Profit Margin is 2.38% for FY-2025, is in line with its 5-year median of 2.38%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 4.1 4.1
Operating Profit Margin (%) 7.23 7.23
Net Profit Margin (%) 2.38 2.38

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Universal Cables Ltd?
Universal Cables Ltd Return on Asset is 2.66%, which is in line with its 5-year historical median of 2.66%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Universal Cables Ltd?
Universal Cables Ltd Return on capital employed is 10.53% for FY-2025, which is in line with its 5-year historical median of 10.53%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Universal Cables Ltd?
Universal Cables Ltd Return on equity is 6.7% for FY-2025, which is in line with its 5-year historical median of 6.7%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Universal Cables Ltd?
Universal Cables Ltd Cash conversion cycle is 149 days, in line with its 5-year historical median of 150 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 1.12 1.11
ROE (%) 6.7 6.7
ROCE (%) 10.53 10.53
Cash Conversion Cycle 149 days 150 days

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

Q.9 Debt to Equity ratio of Universal Cables Ltd?
Universal Cables Ltd Debt-to-Equity ratio is 1.00, which is above the industry average of 0.52, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Universal Cables Ltd?
Universal Cables Ltd Debt to cash flow from operations is 4.82, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Universal Cables Ltd?

Q.1 Promoter shareholding and pledge status of Universal Cables Ltd?
Promoters hold 61.89% of the Universal Cables Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Universal Cables Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Universal Cables Ltd vs industry peers?
Universal Cables Ltd revenue CAGR is 8.95%, compared to the industry median CAGR of 4.57%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 19.2 4.6
Gross Profit Growth (%) 5.3 21.7
Operating Profit Growth (%) 7.4 18.6
Net Profit Growth (%) 5.6 28.5
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 1.12 1.18
ROE (%) 6.7 9.33
ROCE (%) 10.53 13.25
Cash Conversion Cycle (days) 149.29 90

Valuation & price assessment

Q.1 Stock return of Universal Cables Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 30.5% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
30.5% 48.5% 44.3% 133.4%
Q.2 Valuation ratios of Universal Cables Ltd vs historical?
The current P/E ratio of 38.98 is higher than its historical median of 28.21, 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 38.98 28.21 28.85
Price to Book 4.29 2.14 2.59
Price to Sales 1.39 0.73 1.29
EV to EBITDA 18.03 12.13 12.65

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