Uni Abex Alloy Products Limited

Basic Materials — Steel · BSE

₹4,426.00+₹5.25 (+0.12%)

DalalBaazaar Score

74 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with modest growth. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:28 pm

Understanding the Business

Company site ↗

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

What does this company do?

Uni Abex Alloy Products Limited manufacturers and exports centrifugal and static castings in heat, corrosion, and wear resistant stainless-steel alloys in India, Europe, the United States, and internationally.

IndustrySteel

SectorBasic Materials

Employees103

Annual revenue₹218 Cr

How does it make money?

Turns over ₹218 Cr a year. Of every ₹100 of sales, about ₹128 reaches shareholders as profit, with ₹26 left at the operating level before interest, tax and depreciation. Each of its 103 employees supports ₹2.11 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.11 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.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 79.0%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 67.5% against a peer median of 10.8% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

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 +34% while net margin moved +1025% 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+34%

Margin effect+1025%

DalalBaazaar Score

74/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.43 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

78/ 100

Good

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

Valuation

81/ 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

3.1x

3Y Median

19.2x

40 monthly readings · mean 20.2x · range 3.1x–36.7x

Sector Median

18.2x

median of 4 sector peers

🟢Current valuation is approximately 84% below its 3y median of 19.2x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 83% below the peer median of 18.2x.

vs. its own history

Cheap

19.2x median over 40 months · -84%

vs. sector peers

Cheap

18.2x median of 4 peers · -83%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

14.3x

PEG

0.02

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 18.3% to 26.3% over 3 years.
Return on equity is rising
ROE has improved from 22.7% to 67.5%.
Return on capital is rising
ROCE has improved from 30.7% to 79.0%.
High return on capital employed
ROCE of 79.0% is the mark of a business that converts capital into profit efficiently.
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

3 items require attention · 3 high

🔴High leverageFinancial
Debt/Equity of 3.02x — earnings must service borrowings before shareholders see anything.
🔴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.
🔴Receivables growing faster than salesFinancial
Receivables up 213% against revenue up 34% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 79.0% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 18.3% to 26.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 84% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 83% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

Leverage amplifies any setback
Debt/Equity of 3.02x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 213% against revenue up 34%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1Revenue growth stays above 8% a year✓ 10.3% CAGR
Latest reported year was 4.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 24%✓ 26.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹21 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 76%✓ 79.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 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

6 good · 4 neutral · 1 weak

Market Cap

₹874 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

3.1x

Cheap

Cheap against the generic band

P/B Ratio

2.11x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹1,425.61

Profitable

Profitable on a per-share basis

ROE

67.5%

Strong

Strong capital efficiency

ROCE

79.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

3.02x

High

High leverage

Revenue Growth (YoY)

4.7%

Modest

Modest growth

Profit Growth (YoY)

30.5%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.90%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹21 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

7.5%

Average

Average margins

Net Margin

127.6%

Good

Strong bottom-line conversion

Current Ratio

5.58

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.43

Defensive

Steadier than the market

52W Range Position

57%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

4530.8 / 4638.7

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

26.3

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹162 Cr	₹179 Cr	₹192 Cr	₹218 Cr	+10.3%
EBITDA	₹30 Cr	₹53 Cr	₹48 Cr	₹57 Cr	+24.6%
EBITDA Margin	18.3%	29.8%	25.1%	26.3%	—
PAT (Net Profit)	₹19 Cr	₹35 Cr	₹34 Cr	₹280 Cr	+147.2%
EPS	₹93.82	₹179.54	₹169.99	₹1,417.02	+147.2%
ROE	22.7%	31.3%	23.7%	67.5%	—
ROCE	30.7%	42.2%	31.8%	79.0%	—
Total Debt	₹13 Cr	₹19 Cr	₹13 Cr	₹13 Cr	-2.4%
Free Cash Flow	₹22 Cr	₹25 Cr	₹30 Cr	₹21 Cr	-2.4%

🟢 Revenue has grown at 10.3% a year over 3 years.

🟢 EBITDA has grown at 24.6% a year over 3 years.

🟢 EBITDA Margin has risen from 18.3% to 26.3% over 3 years (+8.0 pts).

🟢 PAT (Net Profit) has grown at 147.2% a year over 3 years.

🟢 EPS has grown at 147.2% a year over 3 years.

🟢 ROE has risen from 22.7% to 67.5% over 3 years (+44.8 pts).

🟢 ROCE has risen from 30.7% to 79.0% over 3 years (+48.2 pts).

🟢 Total Debt has shrunk at 2.4% a year over 3 years.

🔴 Free Cash Flow has shrunk at 2.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹493 Cr

Total Liabilities

₹78 Cr

Cash & Equivalents

₹67 Cr

Operating Cash Flow

₹25 Cr

Capex

-₹4 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

75.1%

Corporate Actions

Dividend Rate

₹40

Ex-Dividend Date

02 Sept 2026

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

2 positive4 general

Uni Abex sets Sep 2 record date for ₹100 dividend payout

scanx.trade, 06 AugCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

NTPC, Uni Abex Alloy, Tribhovandas Bhimji Zaveri, Gail Dividends: Last Day To Buy Shares To Qualify

NDTV Profit, 01 Sept

Uni Abex AGM results confirm ₹100 dividend and director continuations

scanx.trade, 09 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Uni Abex Alloy Products Ltd

Equitypandit, 28 Feb

UNI ABEX ALLOY PRODUCTS LTD. Share Price - Live UNIABEXAL Stock Price & Chart

Upstox, 08 Apr

Uni Abex Alloy Products' Thane Land Compulsorily Acquired by MMRDA for Rs. 22.32 Crores

scanx.trade, 11 Mar

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability · Valuation

WeakRisk

Points for each in the Score ↑

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. 3 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑