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UB Engineering Ltd. Stock Analysis

Small Cap
Evaluated by 94 users | BSE: 509992 | NSE: UBENGG |
Transmission Towers / Equipments
UB Engineering is the flagship Company of UB Group’s engineering business. UB Engineering Limited commenced its operations in 1963 as a partnership firm (then known as Western India Erectors) started by two foresighted technocrats and went public in the year 1972. The company came under...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Value Creation
 Mar'07Mar'08Mar'09Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16
Return on Capital Employed 10.78%34.72%32.92%29.24%19.04%7.28%8.04%-59.59%-83.15%-162.09%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 21626545352761153258030511878.4
Y-o-Y Gr. Rt.-22.3%71.3%16.3%16%-12.9%9.1%-47.5%-61.2%-33.8%
Adjusted EPS (Rs.) 2.737.3512.6318.7315.641.950.56-100.08-93.53-98.58
Y-o-Y Gr. Rt.-169.2%71.8%48.3%-16.5%-87.5%-71.3%-17971.4%NANA
Book Value per Share (Rs.) -23.123.3848.859.5575.0577.0166.78-33.45-128.04-226.61
Adjusted Net Profit 3.612.621.63226.73.31-171-160-168
Net Op. Cash Flow (Rs. Cr.) 1.614.414.4-22.510.320.2-18.9-49-48.3-46.3
Debt to Cash Flow from Ops 30.320.370.49-2.928.776.64-9.01-5.17-7.06-9.24
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
UB Engineering Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -10.7%-33.7%-48.7%-33.8%
Adjusted EPS -249%-244.5%-660.5%NA
Book Value per Share 0-224.7-250.30
Share Price -18.6% - - -
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'07Mar'08Mar'09Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16
Return on Equity (%) -29.6357.5330.9934.5723.232.560.78-600.51115.8355.59
Operating Profit Margin (%) -31.166.97.269.59.327.466.84-40.44-96.99-139.47
Net Profit Margin (%) 1.674.744.766.074.370.630.17-56.02-134.86-214.71
Debt to Equity -1.590.130.080.650.711.021.5-4.44-1.56-1.11
Working Capital Days 17885761352042852945681,0961,041
Cash Conversion Cycle 84308337110470185481355
Entity Percentage Holding
Promoters 40.74%
Institutions 1.99%
Non-Institutions 57.27%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of UB Engg.'s performance infers:

UB Engg. earnings have declined by -244.5%, whereas share price has appreciated 0% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of UB Engg. share prices over the last 10 years. Here is what we found out:

UB Engg. share price has appreciated -27.7% annually over the past ten years.

UB Engineering is the flagship Company of UB Group’s engineering business. UB Engineering Limited commenced its operations in 1963 as a partnership firm (then known as Western India Erectors) started by two foresighted technocrats and went public in the year 1972. The company came under the UB Umbrella in 1988.

The sphere of UB Engineering’s activities encompasses EPC Projects, Infrastructure, On-site fabrication of structures, Installation, Testing and Commissioning of

UB Engineering is the flagship Company of UB Group’s engineering business. UB Engineering Limited commenced its operations in 1963 as a partnership firm (then known as Western India Erectors) started by two foresighted technocrats and went public in the year 1972. The company came under the UB Umbrella in 1988.

The sphere of UB Engineering’s activities encompasses EPC Projects, Infrastructure, On-site fabrication of structures, Installation, Testing and Commissioning of Electrical and Mechanical Equipments, Piping, etc. for large Industrial projects such as Power, Refineries, Steel, Cement, Fertilizer, Petrochemical and Desalination Projects. The company enjoys pre-qualification credentials in Electrical Sub-station projects upto 400 KV in India. The company also undertakes Overhauling and Maintenance of Operating Plants in varied Industries, both in India and Abroad.

UB Engineering’s overseas operations cover Algeria, Bahrain, Bangladesh, Iran, Iraq, Jordan, Kenya, Kuwait, Nepal, Nigeria, Oman, Qatar, Saudi Arabia, Singapore, Sudan and UAE.

The phenomenal growth of UB Engineering is due to its proven skills in Project Management, Consistency in Quality, EHS implementation and completion of projects on time. The experience and expertise of UB Engineering is reflected in the form of repeat orders from practically all reputed clients, Indian as well as Overseas.

Different Divisions:

ERECTION DIVISION- Erection Division has been the main stay of the organization since its inception. With the extensive and vast experience in Electro-Mechanical Installation work, the company has been successful in bagging prestigious contracts as well as repeat orders from reputed Indian and International clients. Erection Division has been operating not only in India but also in Middle East and African Countries for past 3 decades.

EPC-MECHANICAL DIVISION- UB Engineering’s foray into the EPC business has been prompted by our concern for on time project completion. Its vast experience in project activities has amply justified this step, in order to gain better control on timely material supplies.Engineering, Procurement and Construction Division is focused strongly on turnkey execution of projects in Steel, Cement, Power, Refineries Fertilizers, Oil & Gas, Fire Fighting, Effluent Treatment, Agrotech and other sectors.Providing single source responsibility, the EPC Division draws its strength from the company's excellent track record in industrial construction both in India and abroad.

EPC-ELECTRICAL DIVISION- UB Engineering Limited's (UBEL) Electrical Division undertakes Turnkey business for HV & EHV Sub-Station upto 400 KV Class in India and abroad and associated transmission lines right from the conceptual stags to commissioning stage.

O & M DIVISION- The O & M Division has serviced more than 30,000 MW of generating capacity since 1980 - an achievement that reflects on the consistency of its workmanship quality and widespread industrial acceptance.In 1980, UB Engineering identified a niche market i.e. overhauling and maintenance of power plants, closely allied to its main field of operations. Moving swiftly, the Overhauling & Maintenance Division was conceived - one of the first large size companies in India to do so.

Clientele

  • Power sector clients- Bharat Heavy Electricals Ltd, COMELEX India, State Electricity Boards, National Thermal Power Corpn, Power Grid Corporation of India Ltd, Nuclear Power Corporation of India etc.
  • Fert / Petrochemical Sector clients- Tata Chemicals Ltd, Indian Petrochemical Corpn. Ltd, Indian Rayon & Industries Ltd, Indian Farmers & fert. Co. Ltd, Rashtriya Chem. & fertilisers Ltd etc.
  • Cement Sector clients- Cement Corpn. of India ltd, Rajashree cements Ltd. Walchandnagar Industries Ltd, Saurashtra Cements Ltd etc.
  • Steel Sector- Tata Iron & Steel Co. Ltd, Metallurgical & Engg. Consultants, Lloyds Metal Ind. Ltd, Mideast Integrated Steels Ltd, ESSAR Group etc.

Awards/ Achievements

  • From 1977 to 2008 UB Engineering has received 13 Shields & 9 Certificates for its project Export Performance. These include :
  • 2008- UDYOG RATNA AWARD to Mr.J.K.Sardana, COO
  • 2008- Excellence Award for excellence in Productivity, Quality, Innovation & Management.
  • 1997-97- Certificate of achieving highest export performance during 1996-97 amongst the Non-SSI.
  • 1995-96- Regional Certificate of Export Excellence in the category of project exports
  • 1991-92- Exporter's Shield of Engg. Consultancy & Exporting Services etc.
  • 1991-92- All India Special Shield Services Exporters (non SSI)
  • 1985-86- Trophy for Maximum Foreign Exchange repatriated from Overseas Service Contracts during 1985
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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