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Check Before You Invest : Umiya Buildcon Ltd

BSE: 532376 NSE: UMIYA-MRO ISIN: INE398B01018
  |   Sector:  Consumer Durables   |   Industry:  IT - Hardware

Snapshot

Q.1 Which industry/sub-sector does Umiya Buildcon Ltd belong to?
Umiya Buildcon Ltd belongs to the Consumer Durables sector, operating specifically within the IT - Hardware segment.
Q.2 Is Umiya Buildcon Ltd a good quality company?
Umiya Buildcon 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 Umiya Buildcon Ltd undervalued or overvalued?
Umiya Buildcon Ltd appears Fair, as its key valuation ratios are in line with 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 3.74 1.49
Price to Book 1.34 1.71
Price to Sales 2.9 3.28
EV to EBITDA 4.28 13.37
Q.4 Is Umiya Buildcon Ltd a good buy now?
Umiya Buildcon Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. 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 Umiya Buildcon Ltd?
Umiya Buildcon Ltd revenue growth is 38.7% for FY-2025, which is above its 5-year CAGR of 3.43%, indicating faster growth.

Q.2 Gross Profit margin of Umiya Buildcon Ltd?
Umiya Buildcon Ltd Gross profit margin which is the profit after deduction of direct costs, is 22% for FY-2025, which is above its 5-year median of 17.7%, indicating increasing margins.

Q.3 Operating Profit Margin of Umiya Buildcon Ltd?
Umiya Buildcon Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 38.15% for FY-2025, which is above its 5-year median of 22.65% indicating increasing margins.

Q.4 Net Profit Margin of Umiya Buildcon Ltd?
Umiya Buildcon Ltd Net Profit Margin is 12.47% for FY-2025, is above its 5-year median of 10.91%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 22 17.7
Operating Profit Margin (%) 38.15 22.65
Net Profit Margin (%) 12.47 10.91

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Umiya Buildcon Ltd?
Umiya Buildcon Ltd Return on Asset is 2.81%, which is above its 5-year historical median of 2.16%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Umiya Buildcon Ltd?
Umiya Buildcon Ltd Return on capital employed is 9.76% for FY-2025, which is above its 5-year historical median of 7.84%. 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 Umiya Buildcon Ltd?
Umiya Buildcon Ltd Return on equity is 8.36% for FY-2025, which is above its 5-year historical median of 5.65%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Umiya Buildcon Ltd?
Umiya Buildcon Ltd Cash conversion cycle is 172 days, in line with its 5-year historical median of 173 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) 0.23 0.23
ROE (%) 8.36 5.65
ROCE (%) 9.76 7.84
Cash Conversion Cycle 172 days 173 days

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

Q.9 Debt to Equity ratio of Umiya Buildcon Ltd?
Umiya Buildcon Ltd Debt-to-Equity ratio is 1.69, which is above the industry average of 0.16, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Umiya Buildcon Ltd?
Umiya Buildcon Ltd Debt to cash flow from operations is 55.56, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Umiya Buildcon Ltd?

Q.1 Promoter shareholding and pledge status of Umiya Buildcon Ltd?
Promoters hold 65.02% of the Umiya Buildcon Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Umiya Buildcon Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Umiya Buildcon Ltd vs industry peers?
Umiya Buildcon Ltd revenue CAGR is 3.43%, compared to the industry median CAGR of 4.28%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 38.7 4.3
Gross Profit Growth (%) 83.3 29.1
Operating Profit Growth (%) 125 28.1
Net Profit Growth (%) 50 34.8
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.23 0.6
ROE (%) 8.36 5.65
ROCE (%) 9.76 7.84
Cash Conversion Cycle (days) 171.66 45

Valuation & price assessment

Q.1 Stock return of Umiya Buildcon 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.
9Y 5Y 3Y 1Y
Share Price
CAGR
7.8% 24.3% 16.7% 14.5%
Q.2 Valuation ratios of Umiya Buildcon Ltd vs historical?
The current P/E ratio of 3.74 is higher than its historical median of 1.49, 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 3.74 1.49 36.44
Price to Book 1.34 1.71 1.97
Price to Sales 2.9 3.28 2.97
EV to EBITDA 4.28 13.37 15.44

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