Ujaas Energy (UEL)
TurnaroundFairStock Score: 24/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹234.18 |
| Market Cap | ₹3,123.91 Cr |
| P/E Ratio | 2,602 |
| ROCE | 9.98% |
| ROE | 3.74% |
| Dividend Yield | 0% |
| Profit Growth | 286.3% |
| Debt/Equity | 0.27 |
| Sales Growth | 14.5% |
| Promoter Holding | 74.96% |
| 52-Week Range | ₹92.32 — ₹284.2 |
| Sector | Power |
| Book Value | ₹6.65 |
Strengths
- Low leverage with Debt/Equity of 0.27, giving some balance sheet cushion.
- High promoter holding of 74.96% aligns promoter interests with the company.
- Positive book value of ₹5.80 per share indicates net worth exists, though thin.
- ROCE of 9.98% shows some operational return on capital, albeit modest.
Concerns
- Extreme valuation: P/E of 784.20 and P/B of 27.99 against book value of ₹5.80.
- Sales growth of -57.28% and profit growth of -95.93% show severe business deterioration.
- Latest quarter sales of ₹3 Cr and net profit of ₹0 Cr indicate virtually no earnings power.
- Piotroski F-Score of 3/9 and zero dividend yield signal weak financial health and no shareholder return.
AI Analysis
Let me first ask a simple question: what am I buying here? Ujaas Energy sells at ₹162.32, but its latest quarter generated only ₹3 crore of sales and essentially zero net profit. Sales have fallen 57.28% and profits have collapsed 95.93%. No dividend is paid. This is not a growing enterprise; it is a shrinking one. A P/E of 784.20 means the market is pricing in a fantastically better future, but Graham taught me to rely on facts, not hopes. The book value is just ₹5.80 per share, so the P/B of 27.99 leaves no margin of safety. ROE is 3.74%, and ROCE is 9.98%—below what I would demand from a business with any genuine competitive advantage. The Piotroski F-score of 3 out of 9 reinforces my caution: the financial health is weak. On the positive side, debt-to-equity is only 0.27, so the balance sheet is not stretched, and promoter holding of 74.96% at least aligns owners with the company. But high ownership is not a moat. A business that earns next to nothing, has negative momentum, and trades at a massive premium to both earnings and assets is not an investment; it is speculation. If this is a turnaround, I need evidence: sustained revenue, real profits, and honest capital allocation. None of those are visible today. I would rather miss the rally than lose my capital chasing a story with no fundamental support. In Benjamin Graham's words, the margin of safety is the central concept. Here, I see none.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer