Uravi Defence & (URAVIDEF)

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

Key Financials

Strengths

• Sales growth of 8.54% shows some top-line momentum.
• Promoter holding at 54.19% aligns management with minority shareholders.
• Debt/equity of 0.45 is manageable.
• Book value of ₹33.24 indicates the company still has a positive net worth.

Concerns

• Profit growth of -77.14% and latest quarter net profit near ₹0 Cr show severe earnings deterioration.
• ROE of only 4.51% and ROCE of 0.00% fail any capital-efficiency test.
• P/E of 80.75, P/B of 4.37, and PEG of 9.46 imply expensive valuation despite collapsed profits.
• Piotroski F-score of 3/9 and zero dividend yield add no safety cushion.

AI Analysis

At first glance, Uravi Defence looks like a fallen growth story—down from ₹509 to ₹145 in a year. But in investing, a falling price is only interesting if the underlying business is worth more. Here, the numbers fail Graham's basic tests. The company earned just 4.51% on equity in the latest year, and ROCE is zero. That means the business is not generating real returns on the capital it employs. Sales grew 8.54%, but profits fell 77.14%; the latest quarter's net profit is essentially zero. This is a classic case of a company spending money to grow but failing to earn a decent rupee of profit. With a P/E around 80.75 and a PEG of 9.46, the market is still pricing in heroic future growth. But where is that growth? Not in the bottom line. Book value is ₹33.24, so paying ₹145.20 means 4.37 times net assets for a deteriorating earner. There is no dividend yield—shareholders aren't even being paid to wait. On the positive side, debt is not excessive—D/E at 0.45—and promoter holding is 54.19%, so interest alignment exists. But promoter ownership does not create a moat. The Piotroski F-score of 3/9 screams weak balance-sheet fundamentals and poor operating efficiency. A Graham disciple would demand a margin of safety; this stock offers almost none. It might be a turnaround candidate if management can fix margins and capital allocation, but I do not bank on turnarounds with zero return on capital. For an Indian retail investor, patience is better: wait for proof in profit numbers, or wait for a lower price. Value is not a falling stock; it's a growing stream of earnings at a reasonable price. Here, the earnings stream has broken.

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