United Cotfab (544195)

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

Key Financials

Strengths

• Sales growth of 20.28% and profit growth of 34.08% show strong recent momentum.
• P/E of 9.66 with PEG of 0.36 suggests the market is pricing in little growth relative to actual earnings growth.
• Piotroski F-Score of 7/9 indicates a generally healthy financial position by quantitative measures.
• ROCE of 9.91% is positive and the latest quarterly sales of ₹75 Cr show meaningful operating scale for a ₹122 Cr company.

Concerns

• Latest quarter net profit of ₹2 Cr on sales of ₹75 Cr implies a razor-thin margin below 3%.
• Dividend yield is zero, so investors get no cash return while waiting.
• Critical data such as book value, ROE, debt-equity, and promoter holding are unavailable, making the risk assessment incomplete.
• The stock has risen from ₹14 to ₹70.17 in the 52-week range, so much of the good news may already be priced in.

AI Analysis

At ₹70.17, this is a ₹122 Cr market cap business selling at 9.66 times earnings. On the face of it, that is not expensive. Sales are growing at 20.28% and profit at 34.08%, so the PEG ratio works out to 0.36. A value investor loves to find growth at such a modest price. The Piotroski score of 7 out of 9 also tells me the financial position is reasonably sound, not deteriorating. But I have to be careful. The latest quarter brings ₹75 Cr of sales yet only ₹2 Cr of net profit. That is a net margin below 3%. This is a fragile, low-margin textiles business. Graham would ask: what margin of safety exists if a small cost increase or a weak order season can eliminate the profit? The ROCE is 9.91%—not bad, but not evidence of a wonderful franchise. There is no obvious moat in the numbers, and no dividend is paid, so the shareholder receives no cash while waiting. Furthermore, I am missing critical data: book value, ROE, debt-to-equity, and promoter holding are not available. I cannot properly assess leverage or management's skin in the game. The stock has already moved from ₹14 to ₹70.17 in its 52-week range; the market has not been asleep. At this point, buying is a bet that growth continues and margins hold, not a statistical bargain with a large safety cushion. I would put it on my watch list, but I would demand more disclosure and greater margin stability before committing capital.

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