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Last Updated on: 24 February, 2024|Author: Getaka | Social: X Twitter Profile

Fundamental Analysis of Universal Cables Ltd

About the Company - Universal Cables Ltd

Universal Cables Ltd. is a Public Limited Listed company incorporated on 06/03/1945 and has its registered office in the State of Madhya Pradesh, India. Company’s Corporate Identification Number(CIN) is L31300MP1945PLC001114 and registration number is 001114. Currently Company is involved in the business activities of Manufacture of other electronic and electric wires and cables. Company’s Total Operating Revenue is Rs. 1813.54 Cr. and Equity Capital is Rs. 34.70 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Cables - Power/OthersP.O. Birla Vikas, Satna Madhya Pradesh 485005headoffice@unistar.co.in
http://www.unistar.co.in
Management
NamePosition Held
Mr. Harsh V LodhaChairman
Mr. Y S LodhaManaging Director & CEO
Mr. S S KothariDirector
Mr. S C JainDirector
Mr. B R NaharDirector
Dr. Kavita A SharmaDirector
Mr. Dilip Ganesh KarnikDirector
Mr. Kishore Kumar MehrotraDirector

Universal Cables Ltd. Share Price Update

Share PriceValue
Today₹482.15
Previous Day₹480.85

Basic Stock Data of Universal Cables Ltd

Market Cap 1,639 Cr.
Current Price 472
High / Low564/325
Stock P/E16.3
Book Value 481
Dividend Yield0.62 %
ROCE12.0 %
ROE8.46 %
Face Value 10.0

Data Source: screener.in

Competitors of Universal Cables Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
KEI Industries Ltd 29,550 Cr. 3,2743,420/1,55453.7 3170.09 %25.8 %20.2 % 2.00
Diamond Power Infrastructure Ltd 1,586 Cr. 301313/22.1 1840.00 %11.4 %% 10.0
Polycab India Ltd 72,005 Cr. 4,7945,733/2,75443.3 4790.42 %27.0 %20.0 % 10.0
Industry Average34 Cr102.6732.33326.670.17%21.4%13.4%7.33

Universal Cables Ltd Quarterly Results

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales370422278451490594514514591583479494467
Expenses340390249436460546470468548531443471426
Operating Profit30322916304844464352372341
OPM %8%8%11%3%6%8%9%9%7%9%8%5%9%
Other Income19362318142318151735221823
Interest15161617202522242427212224
Depreciation7766666666666
Profit before tax27452910184135323154321433
Tax %27%25%26%17%24%24%23%18%21%24%25%17%28%
Net Profit2033228143127262441241224
EPS in Rs5.769.646.292.393.948.977.727.477.0411.836.933.366.91

Universal Cables Ltd Quarterly Chart

Universal Cables Ltd Profit & Loss

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales8171,1801,4151,5681,2801,8132,2022,148
Expenses7421,0731,2401,4021,1891,6902,0161,993
Operating Profit7510717516691123185155
OPM %9%9%12%11%7%7%8%7%
Other Income5252798188788693
Interest4453627763789795
Depreciation1921212326242222
Profit before tax65841701479099152131
Tax %-9%2%20%39%25%24%22%
Net Profit7083136906775118101
EPS in Rs20.3223.8439.1625.9619.3821.6034.0529.16
Dividend Payout %0%6%5%8%5%7%9%

Universal Cables Ltd Profit & Loss Yearly Chart

YoY Net Profit Growth
Year2017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)18.57%63.86%-33.82%-25.56%11.94%57.33%
Change in YoY Net Profit Growth (%)0.00%45.28%-97.68%8.27%37.50%45.39%

Universal Cables Ltd Growth

Compounded Sales Growth
10 Years:%
5 Years:13%
3 Years:12%
TTM:-9%
Compounded Profit Growth
10 Years:%
5 Years:8%
3 Years:10%
TTM:-7%
Stock Price CAGR
10 Years:34%
5 Years:18%
3 Years:49%
1 Year:30%
Return on Equity
10 Years:%
5 Years:9%
3 Years:7%
Last Year:8%

Universal Cables Ltd Balance Sheet

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Sep 2023
Equity Capital3535353535353535
Reserves6478009649551,1011,2601,4621,634
Borrowings288394541621609694657761
Other Liabilities175299310571606770657746
Total Liabilities1,1441,5271,8512,1832,3512,7582,8103,175
Fixed Assets134122155172187167161153
CWIP017217021140
Investments5186347408471,0251,1901,3591,558
Other Assets4927569541,1461,1381,4001,2801,425
Total Assets1,1441,5271,8512,1832,3512,7582,8103,175

Universal Cables Ltd Reserves and Borrowings Chart

Universal Cables Ltd Cash Flow

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Cash from Operating Activity 70-42-593890-12143
Cash from Investing Activity -13-18-27-42-16-7-15
Cash from Financing Activity -6162844-7216-127
Net Cash Flow-32-1-02-30

Universal Cables Ltd Financial Efficiency Indicators

MonthMar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Debtor Days139159157187229195148
Inventory Days8971101891017961
Days Payable951149610612411863
Cash Conversion Cycle133116162169206155146
Working Capital Days134125163163215171149
ROCE %12%17%14%9%9%12%

Universal Cables Ltd Financial Efficiency Indicators Chart

Universal Cables Ltd Share Holding Pattern

MonthMar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Promoters61.89%61.89%61.89%61.89%61.89%61.89%61.89%61.89%61.89%61.89%61.89%61.89%
FIIs0.09%0.04%0.00%0.01%0.03%0.00%0.11%0.35%0.36%0.35%0.31%0.34%
DIIs2.59%2.20%1.94%1.94%1.94%2.04%2.05%2.40%2.55%2.48%3.01%5.25%
Public35.43%35.87%36.17%36.16%36.14%36.07%35.96%35.36%35.20%35.28%34.80%32.50%
No. of Shareholders14,03116,70317,54917,31516,97316,65814,55213,22913,63914,27616,60614,919

Universal Cables Ltd Shareholding Pattern Chart

No. of Universal Cables Ltd Shareholders

Universal Cables Ltd Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)
ICICI Prudential Smallcap Fund4401030.322.43
ICICI Prudential Housing Opportunities Fund2899440.5914.78
ICICI Prudential Infrastructure Fund2748630.3114.01
ICICI Prudential Manufacturing Fund1687020.328.6
HSBC Conservative Hybrid Fund140000.640.71

Universal Cables Ltd ROCE Trend

Universal Cables Ltd EPS Trend

Universal Cables Ltd Key Financial Ratios

MonthMar 23Mar 22Mar 21Mar 20Mar 19
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)34.0521.6019.3825.9639.15
Diluted EPS (Rs.)34.0521.6019.3825.9639.15
Cash EPS (Rs.)20.8211.835.5113.5226.05
Book Value[Excl.RevalReserv]/Share (Rs.)431.32373.15327.30285.37287.96
Book Value[Incl.RevalReserv]/Share (Rs.)431.32373.15327.30285.37287.96
Revenue From Operations / Share (Rs.)634.60522.66369.08452.17408.25
PBDIT / Share (Rs.)58.5041.0430.0652.1353.79
PBIT / Share (Rs.)52.0234.0222.4745.6447.63
PBT / Share (Rs.)23.9511.624.3623.3729.75
Net Profit / Share (Rs.)14.344.81-2.087.0319.89
NP After MI And SOA / Share (Rs.)34.0521.5919.3725.9639.15
PBDIT Margin (%)9.217.858.1411.5213.17
PBIT Margin (%)8.196.506.0810.0911.66
PBT Margin (%)3.772.221.185.167.28
Net Profit Margin (%)2.250.91-0.561.554.87
NP After MI And SOA Margin (%)5.364.135.245.749.59
Return on Networth / Equity (%)7.895.785.919.0913.59
Return on Capital Employeed (%)8.896.565.3412.1414.05
Return On Assets (%)4.202.712.854.137.34
Long Term Debt / Equity (X)0.160.180.070.110.14
Total Debt / Equity (X)0.430.530.450.560.52
Asset Turnover Ratio (%)0.970.870.690.941.01
Current Ratio (X)1.621.411.271.291.40
Quick Ratio (X)1.261.100.970.981.01
Inventory Turnover Ratio (X)5.514.853.323.884.47
Dividend Payout Ratio (NP) (%)4.404.6310.327.703.83
Dividend Payout Ratio (CP) (%)3.703.497.416.163.30
Earning Retention Ratio (%)95.6095.3789.6892.3096.17
Cash Earning Retention Ratio (%)96.3096.5192.5993.8496.70
Interest Coverage Ratio (X)2.081.831.662.343.01
Interest Coverage Ratio (Post Tax) (X)1.511.210.881.322.11
Enterprise Value (Cr.)1901.031169.26987.73842.611280.00
EV / Net Operating Revenue (X)0.860.640.770.530.90
EV / EBITDA (X)9.378.219.474.666.86
MarketCap / Net Operating Revenue (X)0.560.260.360.180.54
Retention Ratios (%)95.5995.3689.6792.2996.16
Price / BV (X)0.830.370.410.280.76
Price / Net Operating Revenue (X)0.560.260.360.180.54
EarningsYield0.090.150.140.310.17

Universal Cables Ltd Profitability Ratios (%)

Universal Cables Ltd Liquidity Ratios

Universal Cables Ltd Liquidity Ratios (%)

Universal Cables Ltd Interest Coverage Ratios (X)

Universal Cables Ltd Valuation Ratios

Fair Value / Intrinsic Value of Universal Cables Ltd

Fair Value: ₹667.40

The stock is undervalued by 41.40% compared to the current price ₹472

*Investments are subject to market risks

Strength and Weakness of Universal Cables Ltd

StrengthWeakness
  1. The company has higher reserves (1,102.88 cr) compared to borrowings (570.63 cr), indicating strong financial stability.
  2. The company has shown consistent growth in sales (103.25 cr) and profit (117.50 cr) over the years.
  1. The stock is trading at a high valuation with an average P/B ratio of 40.36 and average Dividend Yield of 8.50%.
  2. The stock has a low average ROCE of 10.43%, which may not be favorable.
  3. The stock has a high average Working Capital Days of 160.00, which may not be favorable.
  4. The stock has a high average Cash Conversion Cycle of 155.29, which may not be favorable.

Should I Buy Universal Cables Ltd Share Now?

  • Considering various financial indicators, investors might exercise caution regarding investment in Universal Cables Ltd:
    1. Net Profit Margin: 2.25%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 8.89% (Industry Average ROCE: 21.4%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. Interest Coverage Ratio (Post Tax): 1.51
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    4. Quick Ratio: 1.26
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    5. ✓ Stock P/E: 16.3 (Industry average Stock P/E: 32.2)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    6. ✓ Total Debt / Equity: 0.43
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis suggests exercising caution. It's advisable to conduct further research or consult with financial experts before considering any investment.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Universal Cables Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE