1. At a Glance
United Polyfab Gujarat Ltd (UPGL) is a textile player from Gujarat that’s spun itself into investor folklore after delivering a 358% stock price surge in just one year. From ₹8.20 lows to ₹42 highs, the rally has been juicier than mango season profits. But while sales have been fraying at the edges (TTM down 27%), profits have grown 180% TTM. Current P/E? A toasty 48.6, with a book value that would make even penny stocks blush at ₹4.24 (trading at 9.92× book).
2. Introduction
Imagine a fabric manufacturer that does only one thing – spin and weave yarn – but manages to create the kind of chart retail traders screenshot for WhatsApp groups. That’s UPGL.
Incorporated in 2010, it operates almost entirely from Gujarat, weaving denim, cotton, and other fabrics. It’s small compared to big boys like Vardhman and Welspun, but it’s been flexing growth rates that make larger peers look like they’re napping.
The problem? The textile sector is cyclical, margins are still in single digits, and UPGL’s valuation is priced like it’s selling AI-powered fashion lines, not grey fabric.
3. Business Model (WTF Do They Even Do?)
UPGL’s revenue comes from three buckets:
- Manufacturing of woven fabrics & yarn – the core business.
- Trading of fabrics – asset-light but low-margin.
- Job work – contract manufacturing for denim, grey fabric, cotton fabric.
Geography: 100% sales from Gujarat. This is
both a moat (local dominance) and a moat full of crocodiles (no diversification).
It’s a classic textile mill structure – high working capital, high fixed assets, low-tech, and dependent on commodity prices. No “tech-enabled fashion marketplace” buzzwords here.
4. Financials Overview
Fresh P/E Calc: Q1 FY26 EPS = ₹0.26 → Annualised = ₹1.04. CMP ₹42 ÷ ₹1.04 = P/E ~ 40.4 (vs. TTM 48.6).
| Metric | FY25 | YoY Growth |
|---|---|---|
| Revenue | ₹602 Cr | -33% |
| EBITDA | ₹43 Cr | +34% |
| PAT | ₹18 Cr | +157% |
| EPS | ₹0.77 | ↑ from ₹0.29 |
| ROE | 20% | Up from 11% |
| OPM | 7% | Up from 4% |
Commentary: Revenue collapse offset by margin expansion – they’re selling less but earning more per unit. That’s either operational efficiency or sheer price pass-through.
5. Valuation (Fair Value RANGE only)
| Method | Inputs | FV (₹) |
|---|---|---|
| P/E | Small-cap textile avg 25× EPS ₹1.04 | 26 |
| EV/EBITDA | EV ₹1,007 Cr / EBITDA ₹48 Cr → ~21×; sector avg 15× | 32–38 |
| DCF | 10% discount, 12% growth, 5 yrs | 28–35 |
Fair Value Range: ₹26 – ₹38
Disclaimer: This FV range is for educational purposes only and is not investment advice.
6. What’s Cooking – News, Triggers, Drama
- Q1 FY26
