Uni Abex Alloy (504605)
CyclicalFairStock Score: 29/100 — RISKY
Score breakdown: P/E: 2/3 · ROCE: 2/2 · Growth: 1/2 · Dividend: 0/1
Key Financials
| Current Price | ₹2,739.9 |
| Market Cap | ₹554.93 Cr |
| P/E Ratio | 17.94 |
| ROCE | 31.9% |
| ROE | 28.15% |
| Dividend Yield | 1.1% |
| Profit Growth | 3.4% |
| Debt/Equity | — |
| Sales Growth | 8.22% |
| 52-Week Range | ₹2,667 — ₹4,250.05 |
| Sector | Industrial Products |
| Book Value | ₹676.92 |
Strengths
- ROE of 28.15% and ROCE of 31.90% indicate strong capital efficiency and pricing power.
- Piotroski F-Score of 7/9 points to sound financial health and operational discipline.
- Sales growth of 8.22% shows demand resilience despite the cyclical steel environment.
- Book value of ₹676.92 supports a substantial asset base behind the current price.
Concerns
- Profit growth of 3.40% lags sales growth of 8.22%, signalling margin compression.
- P/E of 17.94 and PEG of 3.09 suggest limited growth is already priced in.
- Price is near the 52-week low of ₹2,667 and down sharply from ₹4,250.05, reflecting cyclical risk.
- Dividend yield of only 1.10% provides little downside cushion.
AI Analysis
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.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer