Umiya Buildcon (UMIYA-MRO)

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

Key Financials

Strengths

• Sales grew 21.50%, showing demand for the telecom equipment segment is still expanding.
• Promoter holding of 64.43% aligns owner-managers with minority shareholders.
• Latest quarter remains profitable with net profit of ₹1 Cr on ₹15 Cr sales, so no immediate distress.
• Reported P/E of 17.24 is not excessive at first glance if one trusts reported earnings.

Concerns

• Profit growth fell 46.73% despite 21.50% sales growth, indicating severe margin compression.
• ROCE of only 9.59% versus ROE of 53.74% with debt/equity of 1.00 raises doubts about earnings quality and leverage-driven ROE.
• Piotroski F-Score of 4/9 signals weak financial health on multiple fundamental indicators.
• No dividend yield and a P/B of 2.17 mean minority shareholders receive no cash while paying a premium to book value.

AI Analysis

Looking at Umiya Buildcon, I first see a confusing picture: the name says construction, while the industry classification says telecom equipment. In investing, clarity is essential, and without real clarity on how money is made, I cannot award a premium. The stock at ₹85.29 carries a ₹160 crore market cap, a P/E of 17.24, and a P/B of 2.17. Those multiples are not awful, but they are not cheap for a business whose profit fell 46.73% even as sales rose 21.50%. The latest quarter had ₹15 crore in sales and just ₹1 crore in net profit—roughly a 6.7% margin. That is weak. A reported ROE of 53.74% looks spectacular, but the ROCE is only 9.59%, with debt/equity at 1.00. That gap tells me the high return on equity may be more a reflection of leverage and book-keeping than real franchise power. The Piotroski F-score of 4 out of 9 supports that worry. The company pays no dividend, so the minority shareholder cannot be compensated while waiting. Promoter holding at 64.43% is good, but alignment does not replace margins. The 52-week range of ₹70.00 to ₹110.90 reminds me that this is a volatile small-cap, currently closer to the lower end, yet still above the low. With ROCE below what I would demand, profit declining sharply, and a balance sheet that is not conservative, this feels like a cyclical business under stress, not a durable compounder. I would want stronger financial health, improving margins, and a larger margin of safety to book value before I act.

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