United Polyfab Gujarat Limited

Consumer Cyclical — Textile Manufacturing · NSE

₹51.75+₹0.22 (+0.43%)

DalalBaazaar Score

60 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by moderate debt load, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Valuation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

United Polyfab Gujarat Limited manufactures, trades in, and sells woven fabrics and processed yarn products in India. Its products' portfolio includes spinning and cotton yarn, dyed fabric, grey fabric, and denim fabric.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees149

Annual revenue₹678 Cr

How does it make money?

Turns over ₹678 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation. Each of its 149 employees supports ₹4.55 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹4.55 Cr

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.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 22.0% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

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 +4% while net margin moved +327% 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+4%

Margin effect+327%

DalalBaazaar Score

60/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 43.5x is demanding — it needs sustained high growth to justify
• P/E is close to its own historical median of 41.6x
✗ P/B of 8.88x is a steep premium to book

Quality vs. Valuation

Company Quality

67/ 100

Good

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.

Historical Valuation

Current P/E

43.5x

3Y Median

41.6x

40 monthly readings · mean 44.0x · range 28.4x–99.1x

Sector Median

69.2x

median of 4 sector peers

🟡Currently trading close to its 3y median of 41.6x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 37% below the peer median of 69.2x.

vs. its own history

Fair

41.6x median over 40 months · +4%

vs. sector peers

Cheap

69.2x median of 4 peers · -37%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

24.2x

PEG

0.68

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from 4.5% to 7.9% over 3 years.
Cash generation is improving
Free cash flow is up 48% over 3 years.
Return on equity is rising
ROE has improved from 8.6% to 18.3%.
Return on capital is rising
ROCE has improved from 13.1% to 22.0%.
High return on capital employed
ROCE of 22.0% 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

2 items require attention · 2 high

🔴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.
🔴Inventory building faster than salesFinancial
Inventory up 336% against revenue up 4% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 22.0% 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 4.5% to 7.9%. 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 37% 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?

Growth barely outpaces inflation
Revenue compounding at 1.3% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
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 6%✓ 7.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✗ 1.3% CAGR
Latest reported year was 23.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹12 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 2.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 19%✓ 22.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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 · 3 neutral · 2 weak

Market Cap

₹1,188 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

43.5x

Expensive

Expensive — verify against sector peers

P/B Ratio

8.88x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹1.19

Profitable

Profitable on a per-share basis

ROE

18.3%

Strong

Strong capital efficiency

ROCE

22.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.80x

Moderate

Moderate leverage

Revenue Growth (YoY)

23.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

30.8%

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

₹12 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

5.7%

Average

Average margins

Net Margin

3.7%

Average

Average bottom-line conversion

Current Ratio

2.09

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.00

Defensive

Steadier than the market

52W Range Position

96%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

48.0 / 41.6

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

70.0

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹653 Cr	₹908 Cr	₹602 Cr	₹678 Cr	+1.3%
EBITDA	₹30 Cr	₹33 Cr	₹44 Cr	₹53 Cr	+21.7%
EBITDA Margin	4.5%	3.7%	7.3%	7.9%	—
PAT (Net Profit)	₹5 Cr	₹7 Cr	₹18 Cr	₹24 Cr	+64.3%
EPS	₹0.26	₹0.31	₹0.77	₹1.06	+59.4%
ROE	8.6%	8.3%	18.2%	18.3%	—
ROCE	13.1%	13.7%	20.1%	22.0%	—
Total Debt	₹114 Cr	₹125 Cr	₹118 Cr	₹106 Cr	-2.3%
Free Cash Flow	₹8 Cr	-₹25 Cr	₹18 Cr	₹12 Cr	+13.9%

🟡 Revenue has been broadly flat over 3 years (1.3% a year).

🟢 EBITDA has grown at 21.7% a year over 3 years.

🟢 EBITDA Margin has risen from 4.5% to 7.9% over 3 years (+3.3 pts).

🟢 PAT (Net Profit) has grown at 64.3% a year over 3 years.

🟢 EPS has grown at 59.4% a year over 3 years.

🟢 ROE has risen from 8.6% to 18.3% over 3 years (+9.7 pts).

🟢 ROCE has risen from 13.1% to 22.0% over 3 years (+8.8 pts).

🟢 Total Debt has shrunk at 2.3% a year over 3 years.

🟢 Free Cash Flow has grown at 13.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹273 Cr

Total Liabilities

₹140 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹14 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

86.5%

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 mixed5 general

United Polyfab Gujarat (UNITEDPOLY.NS) Holds Near ₹48.49 as ₹50.91 Resistance Caps the Upside - Call Spread Alert

https://www.siam.in/, 06 Oct

Here's Why United Polyfab Gujarat (NSE:UNITEDPOLY) Has Caught The Eye Of Investors

Simply Wall Street, 14 Aug

United Polyfab Gujarat Share: Bull Case vs Bear Case for 2026

Univest, 29 Sept

United Polyfab Gujarat Limited (NSE:UNITEDPOLY) Stocks Pounded By 27% But Not Lagging Market On Growth Or Pricing

Simply Wall Street, 11 Dec

United Polyfab Gujarat Share Price Target 2027 to 2030: Analyst O

Univest, 14 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

United Polyfab Gujarat to hold 16th AGM on September 29, 2026

scanx.trade, 29 Sept

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Profitability

MiddlingBusiness Quality

WeakValuation · Risk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 2 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Revenue growth stays above 4% a year · see Key things to watch ↑