Uma Exports (UMAEXPORTS)

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

Key Financials

Strengths

• Price-to-book of 0.49 provides a margin of safety relative to the ₹55.91 per-share book value
• Sales growth of 13.29% shows the trading business is expanding its topline
• Promoter holding of 72.51% aligns management interest with minority shareholders
• Positive ROCE of 4.45% indicates the capital employed is at least generating some operating return

Concerns

• ROE is -2.90%, meaning shareholder equity is currently earning a negative return
• Profit growth has declined 41.47%, and the latest quarter's ₹1 crore net profit on ₹560 crore sales shows extremely thin margins
• Debt-to-equity of 0.96 is high for a trading company and increases financial risk
• Piotroski F-Score of 4/9 suggests weak financial health and poor-quality fundamentals

AI Analysis

I have never been attracted to a business just because its shares trade at half its book value. But a price-to-book of 0.49 makes me look twice. Uma Exports has a book value of ₹55.91 per share; at ₹27.13, I am paying only ₹0.49 for every rupee of net assets. That is a real margin of safety, yet value lives or dies by earning power. The company is large in turnover—₹560 crore last quarter—but earns only ₹1 crore on that. That is dangerously thin. The trailing return on equity is -2.90%, so those assets are not working for shareholders; profit growth has fallen 41.47%. The Piotroski score is 4/9, which reinforces my caution. A high promoter holding of 72.51% is good—owners usually feel the pain—but debt-to-equity of 0.96 is heavy for a distributor and can turn a small downturn into a loss. If I buy this, I am buying assets, not earnings. Graham would ask whether the book value is real, how much is inventory, and whether the balance sheet can absorb shocks. I need to watch ROE and debt carefully. There is no dividend yield, so I must rely on asset revaluation or a margin recovery. In my world, a low P/B is not enough. I want the business to earn a respectable return on those assets. Until I see stability in margins and positive, consistent returns on equity, this remains a possible asset play, not a great business.

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