Detailed Analysis on Uni Abex Alloy Products Ltd.
Market Cap : 573 Cr
Current Price ( 07-04-2024) : 2900
Sector : Castings & Forgings
BSE : UNIABEXAL
About :
Incorporated in 1972, Uni Abex Alloy Products Limited is a pioneer and leading manufacturer & exporter of Centrifugal and Static Castings in Heat, Wear and Corrosion Resistant Stainless Steel Alloys with an excellent track record of supplying critical components across industry segments.
Uni Abex Alloy Products Limited, is a part of the Neterwala Group which has diverse interests in Metallurgy, Software, Specialty Chemicals, Engineering, Geology, Oil & Gas and Environment.
(source : screener.in)
- Current Price : 2900
- Market Cap : 573 Cr
- Book Value : 502
- EPS : 195.00
- Promoter Holding : 63.62 %
- Pledged Percentage : 0.00 %
- P/E Ratio : 14.80 (Industry PE : 31.40)
- PEG Ratio : 0.22
- Operating Profit Margin : 28.70 %
- Return on capital employed (ROCE) : 30.80 %
- Return on equity (ROE) : 25.10 %
- Return on assets (ROA) : 15.10 %
- Sales Growth 5Yr : 15.20 %
- Profit Growth 5Yr : 68.50 %
- Dividend Last Year : 20.00
- Dividend Yield : 0.69 %
- Debt : 8.01 Cr
- Debt to Equity : 0.08
- Debtor Days FY23 : 40
- Current Assets : 102 Cr
- Current Liabilities : 45.90 Cr
- Free Cash Flow : 22.40 Cr
- Net Cash Flow : 9.43 Cr
Please refer to this article for detailed explanation on above mentioned financial metrics
- Over the last 5 years sales has grown at a yearly rate of 15 %
- Over the last 3 years sales has grown at a yearly rate of 17 %
- Over the last 5 years net profit has grown at a yearly rate of 69 %
- Over the last 3 years net profit has grown at a yearly rate of 51 %
- ROE last year 25 %
- Over the last 5 years ROE has grown at a yearly rate of 21 %
- Over the last 3 years ROE has grown at a yearly rate of 22 %
- ROCE last year 30.80 %
- Over the last 5 years ROCE has grown at a yearly rate of 25 %
- Over the last 3 years ROCE has grown at a yearly rate of 27 %
- Last Year OPM 17 %
- 2022 OPM 16 %
- 2021 OPM 20 %
- Medium frequency induction furnaces
- Auto TIG welding machines
- Pull boring machines
- Skew roll shot blasting machines
- Heat treatment furnaces
- Sand plants
- Vibratory knock-out machines
- Gas-fired mould heating ovens
- Decanter bowls
- Bowl cones
- Bowl cylinder
- Fully machined parts
- Reformer tubes/ catalyst tubes
- Hot collectors/ headers
- Radiant coil assembly
- Air injection tube
- Feed tubes
- Coal throw pipe
- Furnace rollers
- Rot rolls
- Normalizing furnace rolls
- Radiant tubes
- Sink rolls
- Stabilizer rolls
- Entry/exit seal rolls
- Water-cooled hearth rolls
- Soaking rolls
- Deflector rolls
- Hot bridle rolls
- DFH roller assembly
- Scroll pipes
- Fully machined parts
- Retort
- Base trays/fixtures
- Bends and elbows
- Tube support and hangers
- Ladder-side member
- Reducers and grids
- Cold-cast beam
- End hubs
- Impeller fans
- Sealing plates
- Diffuser segments for the bell or batch annealing furnace
- Charging and discharging rollers for reheating furnaces
- Heating elements for the annealing furnace of the decarb line
- Radiant coils
Industry Insights :
(source : genieglobalgroup.com)
Casting and forging are one of the key engineering segments supplying various components to end-user industries. No industry product can be considered complete without the process of casting and forging.
Currently, India is the world’s 3rd largest casting producer and is expected to open more opportunities for casting and forging industries both for domestic production and for exports.
Casting and forging are one of the major engineering segments supplying various components to industries such as Automobile, Defence, Aerospace, Petrochemicals, Oil & Gas, Power, FMCG, Marine, Paper, Chemicals & Fertilizers and Mines. In the industry, Forging players are taking initiative to acquire technology, knowledge, experience, and expertise. The Indian Casting and Forging industry have gone through up-gradation to be in synchronization with the international practices. Given the enormous potential, frontline domestic players have started building up world-scale capabilities by either putting up Greenfield projects or acquiring sick global facilities and turning them around as business solutions for setting up a foreign business in India.
Casting is highly suitable for the mass production of a certain industrial component as the same mould can be reused. On the contrary, Forging is the manufacturing process involving the shaping of metal using localised compressive forces in which thermal and mechanical energy is applied to ingots to cause the alloy to change shape when in a solid state. Research indicates that the Indian metal casting industry is expected to reach $17,608.2 million by 2028 a 6.7% CAGR during 2023-2028. With a similar trend, the Indian metal forging market is expected to reach $8.0 billion by 2029, implying a 10.69% CAGR during 2023-2029.
PROS :
Company with low debit.
Company with high promoter holding and zero promoter pledge.
Generating good ROCE, ROE, ROA.
Last 5 years profit growth at 68.50 %
Company is maintaining healthy dividend payout.
Positive free cash flow and net cash flow.
Company is consistently improving debtor days (66 in FY20 to 40 in FY23).
Operating margins improved in current year.
Stock PE is less than industry PE.
This is not a buy/sell advice I am not SEBI registered, just providing basic details regarding this company from various sources available online, please do your own research or consult a SEBI registered investment advisor before taking any investment decision.
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