Uni Abex Alloy (504605)

FairStock Score: 29/100 — RISKY

Score breakdown: P/E: 2/3 · ROCE: 2/2 · Growth: 1/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At ₹2,739, Uni Abex Alloy is a curious case. I like high returns on capital—ROE of 28.15% and ROCE of 31.90% are far better than what most steel companies earn, and they suggest a genuine niche or pricing power. The P/B of 4.05 is not cheap, but with that ROE, the business can compound value if returns persist. The Piotroski F-score of 7/9 reinforces a healthy financial picture, though debt data is not disclosed. Still, I value growth carefully. Sales grew 8.22% but profit rose only 3.40%, so margins are being squeezed. Latest quarter sales of ₹46 Cr and net profit of ₹5 Cr confirm the same pressure. At a P/E of 17.94, the market is paying a premium for modest growth; PEG of 3.09 tells me the growth is already in the price. And with the stock at ₹2,739, near the ₹2,667 low and far below the ₹4,250 high, the market is repricing the cycle. Dividend yield of only 1.10% won't protect me during a downturn. I would not call this a bargain. It is a high-quality cyclical, not a growing franchise. In Graham's spirit, I need a margin of safety. At this price, I see quality, but the numbers do not yet give me a compelling entry. I would wait for either lower prices or evidence that profit growth can catch up to sales growth. If returns stay high through the cycle, it may become very interesting.

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Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer