Ultracab (India) Limited

Industrials — Electrical Equipment & Parts · BSE

₹7.65+₹0.04 (+0.53%)

DalalBaazaar Score

54 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, though profits are falling even as sales grow. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

The 60-second version of Ultracab (India) Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Ultracab (India) Limited manufactures and exports electric wires and cables in India.

IndustryElectrical Equipment & Parts

SectorIndustrials

Employees146

Annual revenue₹259 Cr

How does it make money?

Turns over ₹259 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹5 left at the operating level before interest, tax and depreciation. Each of its 146 employees supports ₹1.77 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.77 Cr

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, HAVELLS INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 11.2% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE17.1%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +143% while net margin moved -60% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+143%

Margin effect-60%

DalalBaazaar Score

54/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 6.0% is weak
✗ ROE has fallen by 12.2 points over the period

Quality vs. Valuation

Company Quality

50/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

70/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

19.1x

3Y Median

18.0x

40 monthly readings · mean 19.1x · range 5.5x–45.8x

Sector Median

88.8x

median of 3 sector peers

🟡Currently trading close to its 3y median of 18.0x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 78% below the peer median of 88.8x.

vs. its own history

Fair

18.0x median over 40 months · +6%

vs. sector peers

Cheap

88.8x median of 3 peers · -78%

vs. generic bands

Fair

15x–35x

EV/EBITDA

10.9x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 18.2% to 6.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 29.7% to 11.2% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 2 high · 2 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 6.4 points, from 11.2% to 4.7%.
🔴Receivables growing faster than salesFinancial
Receivables up 267% against revenue up 143% — sales are being booked faster than they are collected.
🟡Debt is increasingFinancial
Total debt is up 31% over 3 years.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 25% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 78% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹2 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 11.2% to 4.7%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 3.7x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 267% against revenue up 143%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 18.2% to 6.0%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 26% a year✓ 34.4% CAGR
Latest reported year was 32.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 3%✓ 4.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 3.7x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Interest cover stays above 3x✓ 3.3x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹2 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

7 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 4 neutral · 2 weak

Market Cap

₹94 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

19.1x

Fair

Fairly valued against the generic band

P/B Ratio

1.00x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.4

Profitable

Profitable on a per-share basis

ROE

6.0%

Weak

Weak capital efficiency

ROCE

11.2%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.48x

Low

Conservative leverage

Revenue Growth (YoY)

32.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-35.7%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹2 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

3.1%

Weak

Thin margins leave little room for error

Net Margin

1.8%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.30

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.69

Defensive

Steadier than the market

52W Range Position

42%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

8.0 / 7.5

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

37.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹107 Cr	₹123 Cr	₹236 Cr	₹259 Cr	+34.4%
EBITDA	₹12 Cr	₹13 Cr	₹20 Cr	₹12 Cr	+1.0%
EBITDA Margin	11.2%	10.6%	8.3%	4.7%	—
PAT (Net Profit)	₹6 Cr	₹6 Cr	₹10 Cr	₹6 Cr	-1.3%
EPS	₹0.59	₹0.63	₹0.99	₹0.45	-8.8%
ROE	18.2%	15.7%	11.1%	6.0%	—
ROCE	29.7%	17.3%	20.3%	11.2%	—
Total Debt	₹35 Cr	₹52 Cr	₹34 Cr	₹46 Cr	+9.3%
Free Cash Flow	₹5 Cr	-₹26 Cr	-₹9 Cr	₹2 Cr	-23.7%

🟢 Revenue has grown at 34.4% a year over 3 years.

🟡 EBITDA has been broadly flat over 3 years (1.0% a year).

🔴 EBITDA Margin has fallen from 11.2% to 4.7% over 3 years (-6.4 pts).

🟡 PAT (Net Profit) has been broadly flat over 3 years (-1.3% a year).

🔴 EPS has shrunk at 8.8% a year over 3 years.

🔴 ROE has fallen from 18.2% to 6.0% over 3 years (-12.2 pts).

🔴 ROCE has fallen from 29.7% to 11.2% over 3 years (-18.5 pts).

🔴 Total Debt has grown at 9.3% a year over 3 years.

🔴 Free Cash Flow has shrunk at 23.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹157 Cr

Total Liabilities

₹65 Cr

Cash & Equivalents

₹6 Cr

Operating Cash Flow

₹5 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

34.3%

Corporate Actions

Ex-Dividend Date

14 Sept 2018

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

3 mixed2 negative1 general

Ultracab closes trading window from July 1 until Q1FY27 results

scanx.trade, 20 JunResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Ultracab (India) Share Price: Today’s Sharp Decline

Univest, 08 SeptPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Ultracab Q1FY27 net profit falls 37% to ₹107.5 lakh on cost pressures

scanx.trade, 12 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Ultracab Share Price Rises 8.69%: Analysis

Univest, 18 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Cable shockers: Ultracab promoters' stake sale makes Polycab’s poor governance look pretty

Moneycontrol.com, 12 JanOwnership

🔴Potentially negativePromoter selling or pledging is a signal worth understanding, though the reason is often personal rather than about the business.

Ultracab (India) Limited Share Price

Upstox, 24 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingGrowth · Risk

WeakBusiness Quality · Profitability

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Debt / EBITDA falls below 3x · see Key things to watch ↑