Unison Metals (538610)

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

Key Financials

Strengths

• P/E of 3.58 and PEG of 0.01 indicate low valuation relative to current trailing earnings
• Latest quarter sales of ₹164 Cr against a market cap of ₹44 Cr show significant revenue scale
• Sales growth of 130.5% and profit growth of 1,000% reflect a strong cyclical demand upswing
• Piotroski F-Score of 7/9 suggests improving operational fundamentals

Concerns

• P/B of 35.11 with book value of just ₹0.79 means almost no asset backing or margin of safety
• Latest quarter net margin is roughly 2.4%, leaving profits highly vulnerable to steel price declines
• 52-week range of ₹0.56 to ₹27.74 indicates an extreme re-rating; the stock has already multiplied about 50 times
• Promoter holding and debt/equity data are unavailable, and dividend yield is zero, creating transparency and income risks

AI Analysis

Let me look at Unison Metals with Graham's discipline. A P/E of 3.58 and a PEG of 0.01 initially look like a bargain, but the P/B of 35.11 against a book value of just ₹0.79 tells me there is no equity cushion underneath. Steel is a commodity business; the 130.5% sales growth and 1,000% profit growth are the earnings tailwind of a cyclical upswing, not necessarily a moat. The latest quarter shows ₹164 Cr in sales but only ₹4 Cr in net profit — a margin of barely 2.4%. That is a razor-thin buffer, and steel price softness can destroy such profits quickly. ROE of 7.57% and ROCE of 13.03% are modest, not the kind of durable economics I want. The 52-week range of ₹0.56 to ₹27.74 is a warning: the stock has already multiplied about 50 times. Buying here is chasing momentum, not finding a margin of safety. The Piotroski F-Score of 7/9 suggests improving fundamentals, but with promoter holding and debt/equity data not available, I cannot properly assess financial risk. Dividend yield is zero, so I am relying entirely on price appreciation in a volatile sector. At ₹27.74, this is a cyclically cheap stock on reported earnings, but the balance sheet, thin margins, and lack of transparency fail Graham's tests. A business that earns 7.57% on equity is not a wonderful business, and a P/B of 35 leaves no asset backing if the cycle turns. I prefer certainty over excitement. This looks like a cyclical trading vehicle, not a compounder I can own with confidence.

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