Ultra Wiring Connectivity System Limited

Sector n/a · NSE

₹88.95₹0.00 (0.00%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Low

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

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 pm

Constructive picture on fundamentals. Profitability, leverage and growth metrics are broadly healthy on this snapshot. That said, valuation should still be checked against direct sector peers (not just the generic P/E bands used here) before treating this as a buy signal.

Understanding the Business

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

How does it make money?

Turns over ₹63 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation.

EBITDA margin10.3%

Net margin5.3%

What is its competitive advantage?Some evidence

ROCE of 17.9% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE17.9%

ROE13.2%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +43% while net margin moved +4% 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+43%

Margin effect+4%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

• Not enough data to assess valuation.

Quality vs. Valuation

Company Quality

65/ 100

Good

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 good business currently available at an undemanding price — the combination this framework is built to look for.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

P/E (Trailing)

—

P/B

—

EV/EBITDA

7.5x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well5

Debt is being paid down
Total debt is down 47% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on capital is rising
ROCE has improved from 15.4% to 17.9%.
Very low debt
Debt/Equity of 0.11x leaves the balance sheet with plenty of headroom.
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

1 item require attention · 1 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.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 47% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹1 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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?

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 10% a year✓ 12.8% CAGR
Latest reported year was 15.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 8%✓ 10.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹1 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 15%✓ 17.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 9 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
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 6 neutral · 0 weak

Market Cap

₹46 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

13.2%

Moderate

Moderate capital efficiency

ROCE

17.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.11x

Low

Conservative leverage

Revenue Growth (YoY)

15.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

18.7%

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

₹1 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹88.95

Gross Margin

33.8%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

5.3%

Average

Average bottom-line conversion

Current Ratio

1.27

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

121.0 / 112.4

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

50.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹44 Cr	₹41 Cr	₹55 Cr	₹63 Cr	+12.8%
EBITDA	₹5 Cr	₹5 Cr	₹6 Cr	₹7 Cr	+12.9%
EBITDA Margin	10.3%	10.9%	10.3%	10.3%	—
PAT (Net Profit)	₹2 Cr	₹2 Cr	₹3 Cr	₹3 Cr	+14.3%
EPS	₹4.28	₹3.74	₹5.38	—	—
ROE	12.9%	10.1%	12.7%	13.2%	—
ROCE	15.4%	13.0%	16.0%	17.9%	—
Total Debt	₹5 Cr	₹6 Cr	₹6 Cr	₹3 Cr	-18.8%
Free Cash Flow	-₹1 Cr	₹1 Cr	₹2 Cr	₹1 Cr	—

🟢 Revenue has grown at 12.8% a year over 3 years.

🟢 EBITDA has grown at 12.9% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 10.3% over 3 years.

🟢 PAT (Net Profit) has grown at 14.3% a year over 3 years.

🟡 ROE has held roughly flat at 13.2% over 3 years.

🟢 ROCE has risen from 15.4% to 17.9% over 3 years (+2.4 pts).

🟢 Total Debt has shrunk at 18.8% a year over 3 years.

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

Balance Sheet & Cash Flow — FY2026

Total Assets

₹47 Cr

Total Liabilities

₹22 Cr

Total Debt

₹3 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹3 Cr

Capex

-₹2 Cr

Recent News

6 general

Ultra Wiring Connectivity System Ltd. (NSE: UWCSL) Business Overview and Growth Prospects

Kalkine India, 11 Sept

Meet the Super Semiconductor Stock Crushing Nvidia in 2026

The Motley Fool, 18 Aug

JYOTIGLOBL Stock Price and Chart — NSE:JYOTIGLOBL

TradingView, 11 Aug

Ultra Wiring Connectivity IPO Dates Review, Price Band, Allotment & Market Lot

IPO Watch, 10 Sept

Small Cap Auto Parts Stocks - Top 10 Stocks List

Alice Blue, 25 Feb

Auto Vs Agriculture Sector - Which Sector Drives Better Returns

Alice Blue, 14 May

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

🟡Business QualityAdequate10.3/20

🟢Financial HealthStrong16.6/20

🟢GrowthStrong13.4/20

🟡ProfitabilityModerate8.3/15

🟡ValuationFair7.5/15

🟡RiskModerate5/10

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 10% a year12.8% CAGR
✓EBITDA margin holds above 8%10.3%
✓Free cash flow remains positive₹1 Cr
✓Debt / EBITDA stays below 2x0.4x
✓ROCE stays above 15%17.9%