Check Before You Invest : United Leasing & Industries Ltd

BSE: 507808 NSE: ISIN: INE357P01014

| Sector: Textiles & Apparels | Industry: Textile

Snapshot

Q.1 Which industry/sub-sector does United Leasing & Industries Ltd belong to?

United Leasing & Industries Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.

Q.2 Is United Leasing & Industries Ltd a good quality company?

United Leasing & Industries Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is United Leasing & Industries Ltd undervalued or overvalued?

United Leasing & Industries Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is United Leasing & Industries Ltd a good buy now?

United Leasing & Industries 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 United Leasing & Industries Ltd?

United Leasing & Industries Ltd revenue growth is 9% for FY-2025, which is below its 5-year CAGR of 30.55%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of United Leasing & Industries Ltd?

United Leasing & Industries Ltd Return on capital employed is 6.67% for FY-2025, which is below its 5-year historical median of 7.11%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of United Leasing & Industries Ltd?

United Leasing & Industries Ltd Return on Asset is 0.86%, which is below its 5-year historical median of 1.07%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of United Leasing & Industries Ltd?

United Leasing & Industries Ltd Return on equity is 3.88% for FY-2025, which is below its 5-year historical median of 6.97%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of United Leasing & Industries Ltd?

United Leasing & Industries Ltd Cash conversion cycle is 190 days, above its 5-year historical median of 156 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	0.6	0.58
ROE	3.88	6.97
ROCE	6.67	7.11
Cash Conversion Cycle	190 days	156 days

Q.6 Gross Profit margin of United Leasing & Industries Ltd?

United Leasing & Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 9.7% for FY-2025, which is in line with its 5-year median of 10.2%, indicating stable margins.

Q.7 Operating Profit Margin of United Leasing & Industries Ltd?

United Leasing & Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 12.14% for FY-2025, which is below its 5-year median of 12.8% indicating decreasing margins.

Q.8 Net Profit Margin of United Leasing & Industries Ltd?

United Leasing & Industries Ltd Net Profit Margin is 1.43% for FY-2025, is below with its 5-year median of 4.12%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	9.7	10.2
Operating Profit Margin	12.14	12.8
Net Profit Margin	1.43	4.12

Q.9 Debt to Equity ratio of United Leasing & Industries Ltd?

United Leasing & Industries Ltd Debt-to-Equity ratio is 1.72, which is above with the industry average of 0.5, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of United Leasing & Industries Ltd?

United Leasing & Industries Ltd Debt to cash flow from operations is -23.29, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of United Leasing & Industries Ltd?

Promoters hold 43.71% of the United Leasing & Industries Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of United Leasing & Industries Ltd vs industry peers?

United Leasing & Industries Ltd revenue CAGR is 30.55%, compared to the industry median CAGR of 4.23%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	9	4.2
Gross Profit Growth	13.4	8.6
Operating Profit Growth	-	7.3
Net Profit Growth	37.5	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.6	0.98
ROE	3.88	6.1
ROCE	6.67	7.6
Cash Conversion Cycle (days)	190.43	109

Valuation & price assessment

Q.1 Stock return of United Leasing & Industries Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 39.84% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	39.8%	-15.1%	-30.6%

Q.3 Valuation ratios of United Leasing & Industries Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 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	-	28.92	19.97
Price to Book	3.62	2.39	1.32
Price to Sales	1.34	1.16	1.06
EV to EBITDA	16.34	10.96	9.32

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