United Leasing & Industries Limited

Consumer Cyclical — Textile Manufacturing · BSE

₹29.50₹0.00 (0.00%)

DalalBaazaar Score

38 / 100

🔴 Weak

Verdict

CAUTION

Risk

High

Driven by the company is currently loss-making, micro-cap size, which brings thin liquidity, falling profits.

In simple words: The company is currently losing money, but sales are shrinking. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

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

What does this company do?

United Leasing & Industries Limited engages in the textile embroidery business in India. It engages in sports academy activities. The company was incorporated in 1983 and is based in New Delhi, India.

IndustryTextile Manufacturing

SectorConsumer Cyclical

Employees7

Annual revenue₹7 Cr

How does it make money?

Turns over ₹7 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹16 left at the operating level before interest, tax and depreciation. Each of its 7 employees supports ₹1.02 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.02 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?Little sign of one

Returns on capital of 4.0% 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 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 -32% while net margin moved -90% 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-32%

Margin effect-90%

DalalBaazaar Score

38/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 11.9% a year
✗ Profit has declined at 59.1% a year
✗ Latest-year revenue growth of -24.9% is below the longer-term trend — momentum is fading
✗ Profit fell 73.8% in the latest year

Quality vs. Valuation

Company Quality

36/ 100

Weak

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

Valuation

44/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

12.2x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 12.9% to 15.6% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 6.4% to 0.4% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 8.2% to 4.0% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 1.2x — little room if earnings dip.
🔴Receivables growing faster than salesFinancial
Receivables up 20% against revenue up -32% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 284% against revenue up -32% — stock may not be moving.
🟡Profit is decliningFinancial
Net profit is down 93% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 12.9% to 15.6%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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 4.6x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 20% against revenue up -32%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 6.4% to 0.4%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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

1EBITDA margin holds above 14%✓ 15.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 4.6x
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✗ 1.2x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹0 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ 4.0%
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

2 good · 3 neutral · 6 weak

Market Cap

₹9 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

1.14x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-0.36

Loss-making

Negative earnings per share — the business is losing money

ROE

0.4%

Weak

Weak capital efficiency

ROCE

4.0%

Weak

Low return on total capital employed

Debt/Equity

0.73x

Moderate

Moderate leverage

Revenue Growth (YoY)

-24.9%

Shrinking

Sales are contracting

Profit Growth (YoY)

-73.8%

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

₹0 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

-7.9%

Weak

Thin margins leave little room for error

Net Margin

-1.6%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.58

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.77

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

31.6 / 32.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

0.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹10 Cr	₹7 Cr	₹8 Cr	₹7 Cr	-11.9%
EBITDA	₹1 Cr	₹1 Cr	₹2 Cr	₹1 Cr	-6.3%
EBITDA Margin	12.9%	13.9%	19.8%	15.6%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	-59.1%
EPS	₹1.43	₹0.28	₹0.38	₹0.1	-58.8%
ROE	6.4%	1.2%	1.6%	0.4%	—
ROCE	8.2%	4.0%	5.6%	4.0%	—
Total Debt	₹4 Cr	₹6 Cr	₹5 Cr	₹5 Cr	+5.2%
Free Cash Flow	-₹1 Cr	₹1 Cr	-₹1 Cr	₹0 Cr	—

🔴 Revenue has shrunk at 11.9% a year over 3 years.

🔴 EBITDA has shrunk at 6.3% a year over 3 years.

🟢 EBITDA Margin has risen from 12.9% to 15.6% over 3 years (+2.6 pts).

🔴 PAT (Net Profit) has shrunk at 59.1% a year over 3 years.

🔴 EPS has shrunk at 58.8% a year over 3 years.

🔴 ROE has fallen from 6.4% to 0.4% over 3 years (-6.0 pts).

🔴 ROCE has fallen from 8.2% to 4.0% over 3 years (-4.2 pts).

🔴 Total Debt has grown at 5.2% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹1 Cr to ₹0 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹13 Cr

Total Liabilities

₹6 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹0 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

43.7%

Corporate Actions

Ex-Dividend Date

18 Mar 1997

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 Leasing & Industries Ltd. Peer Comparison – Compare with Others

Value Research, 06 Sept

United Leasing & Industries approves all resolutions at 42nd AGM

scanx.trade, 03 Oct

2027 Commercial Real Estate Outlook

Deloitte, 24 Sept

Railcar Leasing Market Size, Share | Growth Forecast [2034]

Fortune Business Insights, 28 Sept

Garnet Construction reports standalone net loss of Rs 1.04 crore in the June 2026 quarter

Business Standard, 14 AugResults

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

Leading Leasing Finance And Investment Co - 13 penny stocks plunge up to 70% in CY26. Are you affected?

The Economic Times, 19 Apr

Watch Items

Revenue growth is negative (-24.9%) on the latest reported period — check if this is one-off or a trend.
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.
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

StrongFinancial Health

MiddlingValuation

WeakBusiness Quality · Growth · Profitability · Risk

Points for each in the Score ↑

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

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑