Umiya Tubes Limited

Basic Materials — Steel · BSE

₹25.94+₹0.40 (+1.57%)

DalalBaazaar Score

75 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

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

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Umiya Tubes Limited engages in the business of manufacturing and dealing in tungsten-based products parts and tools in India.

IndustrySteel

SectorBasic Materials

Employees3

Annual revenue₹13 Cr

How does it make money?

Turns over ₹13 Cr a year. Of every ₹100 of sales, about ₹22 reaches shareholders as profit, with ₹22 left at the operating level before interest, tax and depreciation. Each of its 3 employees supports ₹4.25 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin22.1%

Net margin22.0%

Revenue / employee₹4.25 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, JINDAL STEEL LIMITED, STEEL AUTHORITY OF INDIA. These are the companies its valuation and returns are measured against elsewhere in this report.

TATA STEEL LIMITEDP/E 19.8x · ROE 10.8%

JSW STEEL LIMITEDP/E 12.0x · ROE 24.7%

JINDAL STEEL LIMITEDP/E 39.1x · ROE 5.3%

STEEL AUTHORITY OF INDIAP/E 16.5x · ROE 7.1%

What is its competitive advantage?Little sign of one

Returns on capital of 10.9% 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.

ROCE10.9%

ROE10.8%

Peer median ROE10.8%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +77% while net margin moved -139% 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+77%

Margin effect-139%

DalalBaazaar Score

75/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.57 — historically steadier than the index
✗ 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

77/ 100

Good

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

Valuation

80/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

12.3x

Sector Median

18.2x

median of 4 sector peers

🟢Against its sector it trades 32% below the peer median of 18.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

18.2x median of 4 peers · -32%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

12.3x

P/B

1.29x

EV/EBITDA

11.8x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from -38.4% to 22.1% over 3 years.
Return on equity is rising
ROE has improved from -29.1% to 10.8%.
Return on capital is rising
ROCE has improved from -19.9% to 10.9%.

🔴 What Needs Attention1

Free cash flow is negative
The business is not currently covering its capital spending from operations.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹18 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 29% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -38.4% to 22.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 32% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

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 16% a year✓ 21.0% CAGR
Latest reported year was 2154.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 20%✓ 22.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹18 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✓ 10.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ 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 · 5 neutral · 1 weak

Market Cap

₹34 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

12.3x

Cheap

Cheap against the generic band

P/B Ratio

1.29x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹2.11

Profitable

Profitable on a per-share basis

ROE

10.8%

Moderate

Moderate capital efficiency

ROCE

10.9%

Moderate

Moderate return on the capital in the business

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

2154.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

262.1%

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

-₹18 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹25.94

Operating Margin

12.6%

Average

Average margins

Net Margin

18.0%

Good

Strong bottom-line conversion

Current Ratio

5.25

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.57

Defensive

Steadier than the market

52W Range Position

24%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

25.2 / 24.2

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

60.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹7 Cr	₹1 Cr	₹1 Cr	₹13 Cr	+21.0%
EBITDA	-₹3 Cr	-₹1 Cr	-₹3 Cr	₹3 Cr	—
EBITDA Margin	-38.4%	-227.9%	-454.8%	22.1%	—
PAT (Net Profit)	-₹4 Cr	-₹3 Cr	-₹2 Cr	₹3 Cr	—
EPS	₹-0.74	₹-2.18	₹-1.6	₹1.37	—
ROE	-29.1%	-28.7%	-12.5%	10.8%	—
ROCE	-19.9%	-24.7%	-11.7%	10.9%	—
Total Debt	₹6 Cr	₹5 Cr	₹0 Cr	—	—
Free Cash Flow	-₹6 Cr	₹0 Cr	₹4 Cr	-₹18 Cr	—

🟢 Revenue has grown at 21.0% a year over 3 years.

🟢 EBITDA has turned positive, from -₹3 Cr to ₹3 Cr.

🟢 EBITDA Margin has risen from -38.4% to 22.1% over 3 years (+60.5 pts).

🟢 PAT (Net Profit) has turned positive, from -₹4 Cr to ₹3 Cr.

🟢 EPS has turned positive, from ₹-0.74 to ₹1.37.

🟢 ROE has risen from -29.1% to 10.8% over 3 years (+39.9 pts).

🟢 ROCE has risen from -19.9% to 10.9% over 3 years (+30.7 pts).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹32 Cr

Total Liabilities

₹6 Cr

Total Debt

—

Cash & Equivalents

₹0 Cr

Operating Cash Flow

-₹18 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

53.1%

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
JINDAL STEEL LIMITED	39.1x	5.3%
STEEL AUTHORITY OF INDIA	16.5x	7.1%

Recent News

6 general

Umiya Tubes board approves name change and ₹80 crore capital hike

scanx.trade, 24 Sept

Compare LLOYDS STEEL IND. with

Equitymaster, 12 Oct

Umiya Tubes 13th AGM passes all three resolutions on Sep 30, 2026

scanx.trade, 30 Sept

Stocks to watch for Thursday, April 23: Bharat Electronics, Adani Green, Jio Financial, Eveready

BusinessLine, 23 Apr

Umiya Tubes rises 5% after bagging ₹9.64 Cr order for tungsten products

Alice Blue, 23 Apr

Photocopy Shop, Locked Offices, Jungles Gave Returns of 140% to 1,300%: Investigation Finds No Activity in These Six ‘Profitable’ Gujarat Companies

NewsGram, 13 Jul

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

🟢Business QualityStrong15.8/20

🟢Financial HealthStrong13.2/20

🟢GrowthStrong18.4/20

🟢ProfitabilityStrong10.7/15

🟢ValuationAttractive13/15

🔴RiskHigh4/10

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 16% a year21.0% CAGR
✓EBITDA margin holds above 20%22.1%
✗Free cash flow remains positive-₹18 Cr
✓ROCE stays above 8%10.9%