Uravi Defence and Technology Limited

Consumer Cyclical — Auto Parts · NSE

₹112.00+₹4.04 (+3.74%)

DalalBaazaar Score

46 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, with modest growth. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

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

What does this company do?

Uravi Defence and Technology Limited engages in the manufacturing and supply of automotive components in India.

IndustryAuto Parts

SectorConsumer Cyclical

Annual revenue₹39 Cr

How does it make money?

Turns over ₹39 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are BOSCH LIMITED, MARUTI SUZUKI INDIA LTD., TVS MOTOR COMPANY LTD, EICHER MOTORS LTD. 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 5.7% 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 ROE23.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +14% while net margin moved +33% 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+14%

Margin effect+33%

DalalBaazaar Score

46/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 2.6% is weak

Quality vs. Valuation

Company Quality

44/ 100

Weak

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

Valuation

41/ 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.

Historical Valuation

Current P/E

73.7x

3Y Median

229.4x

40 monthly readings · mean 255.0x · range 69.7x–741.6x

Sector Median

45.7x

median of 4 sector peers

🟢Current valuation is approximately 68% below its 3y median of 229.4x. 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 61% above the peer median of 45.7x.

vs. its own history

Cheap

229.4x median over 40 months · -68%

vs. sector peers

Expensive

45.7x median of 4 peers · +61%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

29.5x

PEG

4.94

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 11.7% to 5.7% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🟡Margins are compressingFinancial
EBITDA margin is down 3.1 points over 3 years.
🟡Inventory building faster than salesFinancial
Inventory up 45% against revenue up 14% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 68% 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.
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?

Margins are being competed away
EBITDA margin has fallen from 16.4% to 13.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 4.7x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
A premium to the sector to defend
It trades 61% above the peer median. That premium needs a reason that persists, or it closes.
Growth barely outpaces inflation
Revenue compounding at 4.6% 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.

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

1EBITDA margin holds above 11%✓ 13.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 4.7x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹2 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 2.5x
How much operating profit can fall before interest stops being comfortably covered.
5Revenue growth stays above 4% a year✓ 4.6% CAGR
Latest reported year was 3.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.

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

3 good · 4 neutral · 4 weak

Market Cap

₹128 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

73.7x

Expensive

Expensive — verify against sector peers

P/B Ratio

2.49x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹1.52

Profitable

Profitable on a per-share basis

ROE

2.6%

Weak

Weak capital efficiency

ROCE

5.7%

Weak

Low return on total capital employed

Debt/Equity

0.47x

Low

Conservative leverage

Revenue Growth (YoY)

3.1%

Modest

Modest growth

Profit Growth (YoY)

67.6%

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

-₹2 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

2.3%

Weak

Thin margins leave little room for error

Net Margin

3.3%

Average

Average bottom-line conversion

Current Ratio

1.64

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.18

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

104.5 / 108.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

70.9

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹34 Cr	₹42 Cr	₹41 Cr	₹39 Cr	+4.6%
EBITDA	₹6 Cr	₹7 Cr	₹6 Cr	₹5 Cr	-2.5%
EBITDA Margin	16.4%	17.3%	15.1%	13.3%	—
PAT (Net Profit)	₹1 Cr	₹2 Cr	₹2 Cr	₹1 Cr	+14.9%
EPS	₹0.79	₹1.94	₹1.61	₹1.16	+13.7%
ROE	3.7%	8.4%	3.9%	2.6%	—
ROCE	11.7%	16.3%	8.1%	5.7%	—
Total Debt	₹23 Cr	₹25 Cr	₹26 Cr	₹24 Cr	+1.6%
Free Cash Flow	₹2 Cr	-₹2 Cr	-₹4 Cr	-₹2 Cr	—

🟢 Revenue has grown at 4.6% a year over 3 years.

🔴 EBITDA has shrunk at 2.5% a year over 3 years.

🔴 EBITDA Margin has fallen from 16.4% to 13.3% over 3 years (-3.1 pts).

🟢 PAT (Net Profit) has grown at 14.9% a year over 3 years.

🟢 EPS has grown at 13.7% a year over 3 years.

🔴 ROE has fallen from 3.7% to 2.6% over 3 years (-1.1 pts).

🔴 ROCE has fallen from 11.7% to 5.7% over 3 years (-6.1 pts).

🟡 Total Debt has been broadly flat over 3 years (1.6% a year).

🔴 Free Cash Flow has turned negative, from ₹2 Cr to -₹2 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹78 Cr

Total Liabilities

₹28 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹0 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

2.1%

Insider Holding

69.8%

Peer Comparison

Company	P/E	ROE
BOSCH LIMITED	56.9x	15.9%
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TVS MOTOR COMPANY LTD	56.8x	35.8%
EICHER MOTORS LTD	34.7x	23.0%

Recent News

1 positive2 mixed3 general

Is Now The Time To Put Uravi Defence and Technology (NSE:URAVIDEF) On Your Watchlist?

Simply Wall Street, 03 Apr

Uravi Defence and Technology Share: Bull Case vs Bear Case for 2026

Univest, 29 Sept

Uravi Defence & Technology consolidated net profit rises 62.79% in the June 2026 quarter

Business Standard, 18 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Uravi T and Wedge Lamps Share Price - Live NSE: URAVIDEF Stock Price & Chart

Upstox, 05 May

Uravi Defence and Technology Limited Reports Q3FY26 Consolidated Results with Mixed Operational Performance

scanx.trade, 14 AprResults

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

Uravi Defence and Technology Share Price Target 2027 to 2030

Univest, 18 AugAnalyst view

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

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.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

MiddlingFinancial Health · Growth · Valuation

WeakBusiness Quality · 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. 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 ↑