Universal Auto. (539314)

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

Key Financials

Strengths

• Sales growth of 5.81% shows the top line is still moving forward.
• Book value of ₹65.04 provides a tangible asset base, even though P/B is 2.64.
• Latest quarter sales of ₹49 Cr indicate the business has an operating scale to build on.
• ROCE of 5.69% is positive and could improve if operating costs are brought under control.

Concerns

• Latest quarter net loss of ₹3 Cr on sales of ₹49 Cr shows current operations are unprofitable.
• Profit growth of -50% and P/E of 121.98 make the valuation dependent on a strong earnings recovery.
• ROE of 0.82% and Piotroski F-score of 4/9 signal weak profitability and financial health.
• Zero dividend yield, unavailable promoter holding, and unavailable debt/equity data reduce transparency and checkability.

AI Analysis

At ₹171.80, Universal Auto is being priced as though the future is bright, but the figures make me cautious. A ₹225 crore market cap, a P/E of 121.98, and a latest quarter that lost ₹3 crore on ₹49 crore of sales. Full-year profit has fallen 50%, ROE is only 0.82%, and ROCE is 5.69%. This is not a business that is compounding shareholder wealth; it is barely earning a return on capital. Book value stands at ₹65.04, so the stock trades at 2.64 times book, despite near-zero profitability. The Piotroski F-score of 4 out of 9 reinforces my concern about weak financial condition. Sales growth of 5.81% is positive, but that rate cannot justify a 122 times earnings multiple, especially with no dividend to compensate while waiting. Auto components are cyclical, and the stock has run from ₹41.90 to ₹171.80, so the market has already priced in a strong recovery. Graham used to say price is what you pay, value is what you get. Here, you would be paying for hope. Maybe the cycle will turn and this small auto component player will recover—but a genuine value investor waits for evidence. The absence of promoter holding and debt/equity data is another red flag: I cannot evaluate insider ownership or balance sheet risk. I would rather miss this speculative move than overpay for an uncertain outcome. At best, this is a cyclical candidate that may deserve attention only after earnings stabilise, margins improve, and the price offers a clear margin of safety.

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