Unison Metals Limited

Basic Materials — Steel · BSE

₹0.76₹0.00 (0.00%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by moderate debt load, 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, 6:58 pm

Understanding the Business

Company site ↗

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

What does this company do?

Unison Metals Limited manufactures, trades, and sells stainless steel and ceramic products in India. The company provides non-stick products and dinner sets; and trades in various perfumery chemicals. It is also involved in the export activities.

IndustrySteel

SectorBasic Materials

Annual revenue₹486 Cr

How does it make money?

Turns over ₹486 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹4 left at the operating level before interest, tax and depreciation.

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?Little sign of one

Returns on capital of 13.8% 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 ROE10.8%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +117% while net margin moved +99% 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+117%

Margin effect+99%

DalalBaazaar Score

61/ 100

Good

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

60/ 100

Average

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

Valuation

88/ 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

2.8x

3Y Median

11.0x

40 monthly readings · mean 12.1x · range 2.3x–31.1x

Sector Median

18.2x

median of 4 sector peers

🟢Current valuation is approximately 74% below its 3y median of 11.0x. 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 85% below the peer median of 18.2x.

vs. its own history

Cheap

11.0x median over 40 months · -74%

vs. sector peers

Cheap

18.2x median of 4 peers · -85%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

4.8x

PEG

0.04

What's Good / What's Bad

🟢 What's Going Well2

Return on equity is rising
ROE has improved from 5.8% to 9.3%.
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

4 items require attention · 1 high · 3 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.
🟡Debt is increasingFinancial
Total debt is up 29% over 3 years.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹47 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 85% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 74% 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 85% 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?

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.
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 22% a year✓ 29.4% CAGR
Latest reported year was 58.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 2%✓ 4.2%
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.
4Free cash flow remains positive✗ -₹47 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 2.9x
How much operating profit can fall before interest stops being comfortably covered.

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

4 good · 6 neutral · 1 weak

Market Cap

₹23 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

2.8x

Cheap

Cheap against the generic band

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹0.27

Profitable

Profitable on a per-share basis

ROE

9.3%

Moderate

Moderate capital efficiency

ROCE

13.8%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.96x

Moderate

Moderate leverage

Revenue Growth (YoY)

58.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

63.9%

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

-₹47 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

0.0%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.62

Comfortable

Healthy short-term liquidity

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

0.8 / 0.8

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

25.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹224 Cr	₹258 Cr	₹306 Cr	₹486 Cr	+29.4%
EBITDA	₹11 Cr	₹17 Cr	₹16 Cr	₹20 Cr	+21.9%
EBITDA Margin	5.0%	6.6%	5.1%	4.2%	—
PAT (Net Profit)	₹2 Cr	₹4 Cr	₹4 Cr	₹7 Cr	+62.8%
EPS	₹0.11	₹0.22	₹0.28	₹0.25	+33.3%
ROE	5.8%	10.8%	11.9%	9.3%	—
ROCE	14.4%	21.7%	18.7%	13.8%	—
Total Debt	₹59 Cr	₹60 Cr	₹63 Cr	₹76 Cr	+8.8%
Free Cash Flow	-₹3 Cr	₹4 Cr	₹2 Cr	-₹47 Cr	—

🟢 Revenue has grown at 29.4% a year over 3 years.

🟢 EBITDA has grown at 21.9% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 4.2% over 3 years.

🟢 PAT (Net Profit) has grown at 62.8% a year over 3 years.

🟢 EPS has grown at 33.3% a year over 3 years.

🟢 ROE has risen from 5.8% to 9.3% over 3 years (+3.5 pts).

🟡 ROCE has held roughly flat at 13.8% over 3 years.

🔴 Total Debt has grown at 8.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹241 Cr

Total Liabilities

₹162 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹39 Cr

Capex

-₹9 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

49.2%

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

Unison Metals board approves incorporation of two wholly owned subsidiaries

scanx.trade, 22 Aug

Compare with

Equitymaster, 07 Oct

Telegram Stock-tip Scam in Unison Metals Busted, SEBI Imposes ₹3.65 Crore Penalty on 17, including 2 Promoters

Moneylife, 05 Feb

SAT Stays SEBI Debarment of Unison Metals MD, Says Market Ban For Sharing Public Shareholder Data 'Harsh'

LiveLawBiz, 29 Apr

Unison Metals - 14 penny stocks crash up to 75% in just 3 months. Did you invest in any?

The Economic Times, 05 Apr

Unison Metals passes all five resolutions at 36th AGM

scanx.trade, 03 Oct

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
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.
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

StrongGrowth · Valuation

MiddlingFinancial Health · Profitability

WeakBusiness Quality · 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 ↑