Uniroyal Industries Limited

Consumer Cyclical — Textile Manufacturing · BSE

₹21.65−₹1.34 (−5.83%)

DalalBaazaar Score

36 / 100

🔴 Weak

Verdict

CAUTION

Risk

High

Driven by micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment, 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. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Uniroyal Industries Limited manufactures and trades in garment accessories in India and internationally.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Annual revenue₹110 Cr

How does it make money?

Turns over ₹110 Cr a year. Of every ₹100 of sales, about ₹-1 reaches shareholders as profit, with ₹2 left at the operating level before interest, tax and depreciation.

EBITDA margin1.9%

Net margin-0.6%

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

TRENT LTDP/E 87.2x · ROE 25.9%

AVENUE SUPERMARTS LIMITEDP/E 69.9x · ROE 12.7%

What is its competitive advantage?Little sign of one

Returns on capital of 2.4% 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.

ROCE2.4%

ROE-3.6%

Peer median ROE25.9%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -2% while net margin moved -18% 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-2%

Margin effect-18%

DalalBaazaar Score

36/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 0.6% a year
✗ Profit fell 251.3% in the latest year

Quality vs. Valuation

Company Quality

35/ 100

Weak

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

Valuation

46/ 100

Fair

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

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

77.3x

2Y Median

29.7x

28 monthly readings · mean 28.4x · range 20.2x–38.4x

Sector Median

69.2x

median of 4 sector peers

⚠️Current valuation is approximately 160% above its 2y median of 29.7x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟡Against its sector it is priced broadly in line with the peer median of 69.2x.

vs. its own history

Expensive

29.7x median over 28 months · +160%

vs. sector peers

Fair

69.2x median of 4 peers · +12%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

77.3x

P/B

1.00x

EV/EBITDA

14.8x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 40% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.

🔴 What Needs Attention1

Valuation above its historical average
At 77.3x the stock trades 160% above its own median of 29.7x.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 0.3x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹1 Cr in the latest reported year.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 1.3x to 0.3x.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 40% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 6.4x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
The price already assumes success
The stock trades 160% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
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
2 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

1EBITDA margin holds above 0%✓ 1.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 6.4x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Interest cover stays above 3x✗ 0.3x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹4 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ 2.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 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

4 good · 3 neutral · 4 weak

Market Cap

₹18 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

77.3x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.00x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.28

Profitable

Profitable on a per-share basis

ROE

-3.6%

Weak

Weak capital efficiency

ROCE

2.4%

Weak

Low return on total capital employed

Debt/Equity

0.71x

Moderate

Moderate leverage

Revenue Growth (YoY)

38.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-251.3%

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

₹4 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹21.65

Operating Margin

1.2%

Weak

Thin margins leave little room for error

Net Margin

0.2%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.33

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.34

Defensive

Steadier than the market

52W Range Position

40%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

23.3 / 23.8

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

33.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹112 Cr	₹97 Cr	₹113 Cr	₹110 Cr	-0.6%
EBITDA	₹3 Cr	₹5 Cr	₹5 Cr	₹2 Cr	-13.1%
EBITDA Margin	2.9%	5.0%	4.1%	1.9%	—
PAT (Net Profit)	-₹1 Cr	₹1 Cr	₹0 Cr	-₹1 Cr	—
EPS	₹-1.06	₹1.05	₹0.64	₹-0.78	—
ROE	-4.7%	4.4%	2.3%	-3.6%	—
ROCE	4.3%	10.5%	11.6%	2.4%	—
Total Debt	₹23 Cr	₹22 Cr	₹16 Cr	₹14 Cr	-15.6%
Free Cash Flow	-₹2 Cr	-₹0 Cr	₹6 Cr	₹4 Cr	—

🟡 Revenue has been broadly flat over 3 years (-0.6% a year).

🔴 EBITDA has shrunk at 13.1% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 1.9% over 3 years.

🟢 ROE has risen from -4.7% to -3.6% over 3 years (+1.1 pts).

🔴 ROCE has fallen from 4.3% to 2.4% over 3 years (-1.9 pts).

🟢 Total Debt has shrunk at 15.6% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹2 Cr to ₹4 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹44 Cr

Total Liabilities

₹24 Cr

Total Debt

₹14 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹4 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

65.5%

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

1 positive2 mixed3 general

Uniroyal Industries Q1 Results FY27: PAT Rs 0.12 Cr Reported

Univest, 03 AugResults

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

Uniroyal Industries shareholders approve all AGM resolutions with 97% support

scanx.trade, 30 Sept

Indian Oil Corporation reports consolidated net loss of Rs 1630.74 crore in the June 2026 quarter

Business Standard, 01 AugResults

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

Uniroyal Industries schedules 33rd AGM; proposes ₹0.50 dividend

scanx.trade, 24 AugCapital return

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

UNIROYAL INDUSTRIES LTD. Share Price

Upstox, 23 Mar

UNIROYAL Stock Price and Chart — BSE:UNIROYAL

TradingView, 23 Jul

Watch Items

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

DalalBaazaar Thesis

🔴Business QualityWeak7.5/20

🟡Financial HealthAdequate12.7/20

🔴GrowthWeak2.4/20

🔴ProfitabilityWeak3.2/15

🔴ValuationDemanding6.2/15

🔴RiskHigh4.4/10

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 0%1.9%
✗Debt / EBITDA falls below 3x6.4x
✗Interest cover stays above 3x0.3x
✓Free cash flow remains positive₹4 Cr
✗ROCE stays above 8%2.4%