Uma Converter Limited

Sector n/a · NSE

₹33.35−₹0.55 (−1.62%)

DalalBaazaar Score

47 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by moderate debt load, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with modest growth. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:59 pm

Understanding the Business

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

How does it make money?

Turns over ₹249 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Little sign of one

Returns on capital of 9.2% 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.

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +40% while net margin moved +111% 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+40%

Margin effect+111%

DalalBaazaar Score

47/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

49/ 100

Average

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

Valuation

60/ 100

Fair

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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

EV/EBITDA

9.4x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Return on capital is rising
ROCE has improved from 7.0% to 9.2%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.9x — little room if earnings dip.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹4 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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?

The debt load needs earnings to hold up
Debt is 4.9x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
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 9% a year✓ 11.9% CAGR
Latest reported year was 9.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 4%✓ 6.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 4.9x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹4 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 1.9x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

5 / 9 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
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

1 good · 8 neutral · 2 weak

Market Cap

₹68 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

4.1%

Weak

Weak capital efficiency

ROCE

9.2%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.97x

Moderate

Moderate leverage

Revenue Growth (YoY)

9.3%

Modest

Modest growth

Profit Growth (YoY)

17.4%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

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

Free Cash Flow

-₹4 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Gross Margin

16.7%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

1.3%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.49

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

17.2 / 16.7

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

44.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹178 Cr	₹181 Cr	₹227 Cr	₹249 Cr	+11.9%
EBITDA	₹13 Cr	₹16 Cr	₹14 Cr	₹15 Cr	+6.2%
EBITDA Margin	7.2%	9.0%	6.3%	6.1%	—
PAT (Net Profit)	₹1 Cr	₹4 Cr	₹3 Cr	₹3 Cr	+43.5%
EPS	₹0.53	₹2.07	—	—	—
ROE	1.6%	5.8%	3.6%	4.1%	—
ROCE	7.0%	11.7%	9.5%	9.2%	—
Total Debt	₹73 Cr	₹67 Cr	₹66 Cr	₹75 Cr	+0.9%
Free Cash Flow	-₹7 Cr	₹11 Cr	₹6 Cr	-₹4 Cr	—

🟢 Revenue has grown at 11.9% a year over 3 years.

🟢 EBITDA has grown at 6.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 7.2% to 6.1% over 3 years (-1.0 pts).

🟢 PAT (Net Profit) has grown at 43.5% a year over 3 years.

🟢 ROE has risen from 1.6% to 4.1% over 3 years (+2.5 pts).

🟢 ROCE has risen from 7.0% to 9.2% over 3 years (+2.1 pts).

🟡 Total Debt has been broadly flat over 3 years (0.9% a year).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹191 Cr

Total Liabilities

₹113 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹9 Cr

Capex

-₹13 Cr

Recent News

6 general

EMMBI INDUSTRIES Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 15 Oct

UMA CONVERTER LIMITED Share Price

Upstox, 04 Apr

UMA price today, UMA to USD live price, marketcap and chart

CoinMarketCap, 25 May

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Business Standard, 29 Aug

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Simply Wall Street, 05 Nov

UMA to RUB: Convert UMA (UMA) to Russian Ruble (RUB)

Coinbase, 14 Jan

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongGrowth

MiddlingValuation

WeakBusiness Quality · Financial Health · Profitability · Risk

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. 1 high-severity red flag sits above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑