Uniparts India (UNIPARTS)

FairStock Score: 58/100 — STEADY

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

Key Financials

Strengths

• ROE of 22.93% with low leverage (D/E 0.13) signals high-quality earnings
• Piotroski F-Score of 7/9 and 65.89% promoter holding align stakeholder interests
• Sales growth of 34.9% and profit growth of 87.2%; PEG of 0.26 is attractive if growth sustains
• Dividend yield of 3.33% provides a shareholder return while waiting
• Latest quarter sales of ₹281 Cr and net profit of ₹33 Cr show continued operating momentum

Concerns

• P/B of 3.95 against book value of ₹126.42 leaves little margin of safety
• ROCE of 12.35% is meaningfully below ROE, suggesting operating capital efficiency is not exceptional
• Price has fallen from the 52-week high of ₹844 to ₹499, indicating market fears of a cyclical slowdown
• FairStock Score of 58/100 STEADY implies growth quality is moderate, not outstanding

AI Analysis

At ₹499, Uniparts isn't demanding on trailing earnings—15.61 times—but the book value premium bothers me: 3.95 times for a company whose ROCE is 12.35%, not spectacular. Still, quality is visible. No debt burden (D/E 0.13), promoter holding 65.89%, and a return on equity near 23%. The latest quarter sales of ₹281 Cr and net profit of ₹33 Cr; trailing growth numbers of 34.9% and 87.2% are impressive. If that growth persists, the PEG of 0.26 suggests Mr Market has become pessimistic after the fall from ₹844 to ₹499, perhaps seeing cyclicality in tractors and off-highway equipment. I like the dividend yield of 3.33%, giving a floor while waiting. Piotroski F-Score of 7/9 indicates solid financial health, but the FairStock Score of 58/100 is merely STEADY, not exceptional. Auto components are competitive; I need evidence of pricing power, not just a volume cycle. Book value of ₹126.42 means I am paying a large premium, so eventual normalized earnings must justify it. The promoter skin in the game is good. I would categorise this as a fast grower with cyclical tendencies—growth is real but must survive the next downturn. I would not chase solely on PEG because that uses peak profit growth; I would demand a margin of safety. If the company maintains ROE above 20% through a challenging year and keeps debt low, it may deserve a place. At this price, I want a longer operating history and clearer order visibility.

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