Uma Converter (UMA)

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

Key Financials

Strengths

• High promoter holding of 69.45% aligns interests with minority shareholders
• Small market cap of ₹37 Cr leaves room for growth if operations improve
• Sales growth of 4.53% shows modest business activity
• Latest quarter remains profitable with ₹2 Cr net profit

Concerns

• Profit declined 6.58% while PEG of 3.19 suggests expensive relative to growth
• ROCE of only 7.09% indicates weak capital efficiency
• Piotroski F-Score of 4/9 points to poor financial health
• No dividend, and lack of book value, ROE and debt/equity data limits proper analysis

AI Analysis

At ₹18.75, Uma Converter is a tiny packaging company with a market cap of just ₹37 crore. I have always been drawn to simple businesses, but packaging requires scale, cost control and pricing power. The numbers here do not show those qualities. Return on capital employed is only 7.09%, which is barely above what an investor can earn without taking business risk. Sales grew by a modest 4.53%, yet profits declined by 6.58%. In the latest reported quarter, sales were ₹120 crore but net profit was only ₹2 crore — a razor-thin margin. That is not the profile of a durable franchise. The P/E of 14.43 may seem reasonable, but with declining earnings and a PEG of 3.19, I am being asked to pay a growth multiple for a non-growing, low-return business. The Piotroski F-Score of 4 out of 9 is a red flag. It suggests weak operating efficiency, leverage or asset-quality issues. There is no dividend, and with book value, ROE and debt/equity not disclosed, I cannot complete even a basic Graham checklist. In Graham's language, the margin of safety is absent when the data is insufficient and profits are slipping. On the positive side, promoters own 69.45%, which aligns their interests with mine. The small base and positive sales growth mean a turnaround is possible if management focuses on margins. But hope is not a strategy. I would wait on the sidelines until the company demonstrates stable profitability, healthier returns on capital, and transparent disclosure. For now, this is a slow grower at best, and a value trap at worst.

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