🟢 At a Glance:
Uravi Defence & Technology Ltd (URAVI) has reported FY25 revenue of ₹44.60 crore with a net profit of ₹1.95 crore — a margin of ~4.37%. But here’s the plot twist: their defence vertical, a recent pivot, contributed ₹2.23 crore, i.e., just 5% of total revenue. So, is this a real transformation or just putting a “missile” label on a tail lamp?
🏢 About the Company
- Formerly: Uravi T and Wedge Lamps Ltd
- Founded: 2004
- Products: Wedge-based automotive lamps for instrument clusters, taillights, indicators
- Brand: UVAL
- Largest player in India for cluster lamps
- Second-largest in India for signalling/parking lamps (OEM segment)
- Recently entered the defence tech sector through acquisitions
🧑💼 Key Managerial Personnel (KMP)
| Name | Role |
|---|---|
| Niraj Gada | MD & CEO |
| Kaushik Damji Gada | Whole-time Director & CFO |
📊 FY25 Financials Breakdown
🔹 Consolidated (FY25)
| Metric | Value |
|---|---|
| Total Income | ₹44.60 Cr |
| EBITDA | ₹6.75 Cr |
| EBITDA Margin | 15.13% |
| Net Profit (PAT) | ₹1.95 Cr |
| PAT Margin | 4.37% |
| EPS (Basic) | ₹2.31 |
🔸 Q4 FY25 Consolidated
| Metric | Value |
|---|---|
| Total Income | ₹11.73 Cr |
| EBITDA | ₹2.08 Cr |
| Net Profit (PAT) | ₹0.81 Cr |
| PAT Margin | 7.11% |
| EPS (Basic) | ₹0.84 |
🔍 Segment-Wise Revenue (FY25)
| Segment | Revenue (₹ Cr) | Share of Total |
|---|---|---|
| Automotive | ₹41.27 Cr | 92.6% |
| Defence | ₹2.23 Cr | 5.0% |
| Others | ₹1.10 Cr est. | ~2.4% |
🔮 Forward-Looking Fair Value (FV) Estimate
Let’s assume:
- Expected Revenue Growth: 20% CAGR
- Target PAT Margin: 6–7%
- Sector P/E (Auto Components + Defence Pivoted): 22–25x
- FY26E PAT: ₹2.5–2.8 Cr
- FV Range: ₹51–₹57
🟡 Note: CMP is not mentioned per new EduInvesting standards. Use FV range for relative comparison.
🌱 Growth Outlook & Strategy
- Increasing OEM penetration in instrument cluster lighting
- Defence foray via 50.01% acquisition in SKL India Pvt Ltd
- Launched UK-based subsidiary (Bharat Technology Ltd) for global scaling
- High-margin aftermarket business growing steadily
- Exploring tie-ups for international defence tech partnerships
🧾 Balance Sheet Insights
- Asset-light structure for auto lamp manufacturing
- Defence assets primarily through SKL subsidiary
- Working capital appears healthy (no stress mentioned)
- Net debt status undisclosed in PR — needs deeper dive in full filings
⚠️ Risks & Red Flags
- Defence revenue is still tiny at ₹2.23 Cr — flashy news, minimal weight
- Commodity inflation (copper, rare earths) could impact margins
- Small cap volatility — low liquidity in URAVI stock
- Dependency on OEM demand cycles (auto industry slowdown risk)
- Expansion to UK via subsidiary needs capital discipline
🧠 EduInvesting Take
“Uravi is selling indicator bulbs. And now it’s indicating it wants to be a defence company.”
- The defence revenue — ₹2.23 Cr — is not yet transformative. It’s a teaser.
- But credit where due: net profit growth in Q4 was 161% QoQ, which shows serious cost control and margin discipline.
- If defence biz hits ₹10 Cr+ in FY26, this will become a serious smallcap to track.
Verdict:
Uravi isn’t a defence tech giant — yet. But it has upgraded from “tail-light manufacturer” to “auto+defence dual play.” If they execute well, they could graduate from penny stock club to the smallcap honour roll.
📅 Published: 2 June 2025
✍️ Author: Prashant Marathe
🏷️ Tags: Uravi Defence, FY25 Results, Smallcap Stocks, Defence Stocks India, SKL India, Automotive Lamps, UVAL, Defence Expansion, SME Stocks, BSE 543930
