1. At a Glance
This isn’t your average steel pipe dream. Uni Abex Alloy Products Ltd (UAAPL), armed with reformer tubes and heat-resistant alloys, is quietly forging a business so profitable it’s borderline metallic sorcery. A 26%+ ROE, 32% ROCE, 44% CAGR profit growth over 5 years, and a near-zero debt profile — all wrapped in a ₹677 Cr market cap? Industrial investors, you’ve just found your next obsession.
2. Introduction with Hook
If the metals sector were a Marvel universe, Uni Abex would be that underrated sidekick — not flashy like APL Apollo, but silently saving the day (and your portfolio).
Here’s the magic:
- ROCE of 32%
- EPS CAGR (5Y) of 44%
- Cash flow positive, debt-light, and now expanding into North America
It’s like watching Ratan Tata fly economy — humble exterior, billionaire fundamentals.
3. Business Model (WTF Do They Even Do?)
Uni Abex isn’t making TMT bars or kitchen utensils.
They’re into high-performance alloy castings that laugh in the face of heat, corrosion, and time. Their products include:
- Centrifugal & Static Castings
- Reformer Tubes
- Decanter components for process industries
Serving elite customers in:
- Petroleum, Fertilizer & Petrochem
- Iron & Steel
- EPC & OEM contractors
- Consultants in need of high-spec parts
ISO-certified, MSME registered, and a One Star Export House, they recently announced a ₹85 Cr expansion and entry into the North American market. Big boy moves.
4. Financials Overview
| Year | Revenue (₹ Cr) | EBITDA (₹ Cr) | Net Profit (₹ Cr) | EPS (₹) | OPM (%) |
|---|---|---|---|---|---|
| FY21 | 105 | 21 | 11 | 54.13 | 20% |
| FY22 | 137 | 21 | 12 | 62.28 | 16% |
| FY23 | 163 | 28 | 19 | 93.82 | 17% |
| FY24 | 180 | 49 | 35 | 179.54 | 27% |
| FY25 | 193 | 44 | 34 | 169.97 | 23% |
- Profit CAGR (3Y): 40%
- Sales CAGR (5Y): 14%
- FY25 EPS: ₹170 — yes, One Seven Zero.
- Current PE: ~20 — fair, given quality
5. Valuation
Let’s whip out the trusty calculator:
- Market Cap: ₹677 Cr
- EPS (FY25): ₹170
- P/E: 20.18
- Book Value: ₹717
- CMP/Book: 4.78x
Fair Value Range:
| Method | Basis | FV Range |
|---|---|---|
| PE Method | 18–25x FY26E EPS (₹200) | ₹3,600 – ₹5,000 |
| DCF (Conservative 12% growth) | 10% WACC | ₹3,300 – ₹4,200 |
| EV/EBITDA | 12x normalized | ₹3,700 – ₹4,500 |
Translation: Current price is reasonable, with an upside tail depending on North America play and execution of the Dharwad expansion.
6. What’s Cooking – News, Triggers, Drama
- ₹85 Cr Capex in Dharwad — production expansion by FY27
- Strategic Entry into North America via CRU 2025 — export play = valuation rerating
- Appointed new COO (Mr. Nisar Hasan) in Sep 2024 – operational revamp brewing?
- Dividend of ₹35/share — not bad, not great
The stock’s been climbing a smokestack, doubling in 3 years. Drama? Only if you count consistent execution as dramatic.
7. Balance Sheet
| Item | FY25 (₹ Cr) |
|---|---|
| Equity Capital | 2 |
| Reserves | 140 |
| Borrowings | 13 |
| Total Liabilities | 196 |
| Fixed Assets | 24 |
| Investments | 41 |
| Other Assets | 131 |
Key Points:
- Almost debt-free
- Capex ready, yet cash flow positive
- Investments up 4x since FY21 — capital allocation on point
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY21 | ₹26 Cr | -₹5 Cr | -₹13 Cr | ₹9 Cr |
| FY22 | ₹12 Cr | -₹9 Cr | -₹1 Cr | ₹3 Cr |
| FY23 | ₹26 Cr | -₹12 Cr | -₹4 Cr | ₹9 Cr |
| FY24 | ₹28 Cr | -₹34 Cr | ₹2 Cr | -₹5 Cr |
| FY25 | ₹35 Cr | -₹17 Cr | -₹12 Cr | ₹6 Cr |
- Healthy operating cash
- Capex-driven investment outflows (good sign)
- Little reliance on external financing
9. Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE (%) | 30 | 43 | 32 |
| ROE (%) | 26 | 26 | 26 |
| D/E | 0.1 | 0.17 | 0.09 |
| Working Cap Days | 54 | 70 | 138 |
| Debtor Days | 40 | 39 | 72 |
- ROCE & ROE are chef’s-kiss level
- Debtor Days rising = watchlist
- Working capital bloating = Capex-related lag or structural change?
10. P&L Breakdown – Show Me the Money
| Metric | FY25 |
|---|---|
| Sales | ₹193 Cr |
| EBITDA | ₹44 Cr |
| Net Profit | ₹34 Cr |
| EPS | ₹170 |
| EBITDA Margin | 23% |
| PAT Margin | 17.6% |
Margins holding strong in spite of cost inflation — alloy mastery in action.
11. Peer Comparison
| Company | PE | ROE (%) | ROCE (%) | M.Cap (₹ Cr) |
|---|---|---|---|---|
| APL Apollo | 63 | 19.4 | 22.8 | 47,649 |
| Ratnamani Metals | 37 | 16.0 | 21.6 | 19,828 |
| Jindal Saw | 9.9 | 13.7 | 19.3 | 14,600 |
| Uni Abex Alloy | 20 | 26.4 | 32.0 | 677 |
Best-in-class returns. Yet valued at a fraction of its bigger cousins. Tiny titan vibes.
12. Miscellaneous – Shareholding, Promoters
| Category | Mar 2025 |
|---|---|
| Promoters | 63.62% |
| DIIs | 0.03% |
| Public | 36.36% |
| No. of Shareholders | 7,407 |
- Stable promoter holding
- DII/FII blindspot = potential rerating trigger
- Expanding shareholder base = buzz building
13. EduInvesting Verdict™
Uni Abex is what happens when an old-school engineering company gets its act together: operational excellence meets strategic ambition.
- World-class ROEs? Check.
- Clean books? Check.
- Global expansion? Check.
- Fair valuation? Absolutely.
- Recognition? Not yet.
Which means: before it’s cool, this one’s already hot. Industrial investors, your hidden gem has arrived.
Metadata
– Written by EduInvesting Research Team | 17 July 2025
– Tags: Uni Abex Alloy, Alloy Castings, MSME, High ROE Stocks, Neterwala Group, Smallcap Metals, Indian Manufacturing Boom, Industrial Exports
