“Because when automotive lights don’t shine bright enough, you pivot to defence tech and buy a UK company.”
1. At a Glance
Uravi began life as a humble wedge lamp manufacturer. Now, it’s morphing into a microcap defence-tech wannabe with a 220x P/E ratio and a shopping spree in the UK. Welcome to one of India’s most ambitious identity crises.
2. Introduction with Hook
You’re driving a Maruti 800 at night. Suddenly, the headlamps transform into radar-guided missile seekers.
That’s Uravi for you—automotive parts veteran turned aspiring defence-tech unicorn.
- Stock P/E: 220 (not a typo)
- Quarterly sales: ₹11 Cr (also not a typo)
From taillights to target acquisition in one SEBI filing. But will it work?
3. Business Model (WTF Do They Even Do?)
Originally known as Uravi T & Wedge Lamps, the company:
- Makes auto lighting components (under brand UVAL)
- Sells to OEMs & aftermarket
- Has now rebranded to Uravi Defence & Technology Ltd
Why?
Because they’re now acquiring:
- SKL India (defence equipment maker)
- Spafax UK – A 🇬🇧-based defence tech firm, for £3.42 million
(Yes, the entire company was cheaper than a Mumbai penthouse.)
Uravi is betting that cross-border defence manufacturing is its future. Or at least, better than chasing marginless auto lamps.
4. Financials Overview
| Metric | FY25 |
|---|---|
| Revenue | ₹43.63 Cr |
| EBITDA | ₹5.78 Cr |
| Net Profit | ₹2.55 Cr |
| OPM | 13.25% |
| EPS | ₹2.24 |
| ROE | Not disclosed |
| Market Cap | ₹542 Cr |
| P/E Ratio | 220 |
Translation:
You’re paying 220x earnings for a ₹44 Cr revenue business with flat YoY profit. Spicy.
5. Valuation
This one’s a puzzle:
- Market Cap: ₹542 Cr
- EPS (TTM): ₹2.24
- P/E: 220
- Book Value: ₹42.2 → P/B: 11.7x
EduFair Value Range:
- Pessimistic (20x EPS ₹2.5): ₹50
- Reasonable (30x forward EPS ₹3): ₹90
- Hope Mode (Defence monetization works): ₹140
FV Range: ₹50 – ₹140
(At ₹493, we are clearly flying an F-35 on a Bajaj Chetak engine.)
6. What’s Cooking – News, Triggers, Drama
- Big UK Acquisition: Spafax, £3.42M defence tech company → Will it scale? Or spaflop?
- SKL India: 55% stake in defence component manufacturer (India ops ramp-up)
- Name Change Approved: Rebranding from Wedge Lamps to Defence Bros Ltd
- Equity Fundraising via Warrants: Dilution may come
- Promoter Stake Down: From 72.73% to 70.93%
- FIIs Warming Up: From 0% → 4.82% in just 3 quarters
7. Balance Sheet
| Item | FY25 (₹ Cr) |
|---|---|
| Equity Capital | 11.26 |
| Reserves | 35.10 |
| Borrowings | 25.88 |
| Other Liabilities | 16.53 |
| Total Liabilities | 88.77 |
| Fixed Assets | 19.58 |
| CWIP | 2.71 |
| Investments | 0.19 |
| Other Assets | 66.29 |
Key Points:
- Very lean balance sheet
- Low leverage
- Net cash of ₹14.23 Cr
- Expansion likely funded through equity dilution
8. Cash Flow – Sab Number Game Hai
| FY25 |
|---|
| CFO |
| CFI |
| CFF |
| Net Cash |
Insights:
Operations still burning cash.
Growth funded via financing—warrants, loans or dilution incoming.
Classic early-stage pivot-mode cash flow.
9. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| OPM | 13.25% |
| EPS | ₹2.24 |
| P/E | 220 |
| Inventory Days | 453.3 |
| Debtor Days | 119.9 |
| CCC (Cash Conversion Cycle) | 511 days |
| ROCE / ROE | Not reported (yet) |
Verdict:
A 511-day cash cycle is brutal.
Margins are improving, but working capital is stuck in 2-year-old headlamps.
10. P&L Breakdown – Show Me the Money
| FY25 | ₹ Cr |
|---|---|
| Revenue | 43.63 |
| Expenses | 37.85 |
| Operating Profit | 5.78 |
| OPM | 13.25% |
| Other Income | 0.97 |
| Interest | 1.91 |
| Depreciation | 2.05 |
| Profit Before Tax | 2.79 |
| Net Profit | 2.55 |
Takeaway:
The P&L is stable but barely scaling.
Profitability depends more on re-rating expectations than operating leverage.
11. Peer Comparison
| Company | CMP | P/E | OPM | ROE | MCap (₹ Cr) |
|---|---|---|---|---|---|
| Bosch | ₹36,525 | 53.5 | 12.7% | 15.55% | ₹1,07,726 |
| Uno Minda | ₹1,073 | 65.8 | 11.1% | 17.56% | ₹61,646 |
| Endurance Tech | ₹2,623 | 44.6 | 13.4% | 15.47% | ₹36,896 |
| Uravi | ₹493 | 220 | 13.25% | – | ₹542 |
EduFact:
Uravi has margins like the big boys… but scale like a paan shop.
12. Miscellaneous – Shareholding, Promoters
Promoter Shareholding Breakdown (Mar 2025)
| Shareholder | Mar ’25 Holding (%) |
|---|---|
| Total Promoter Holding | 70.93 |
| Viney Corporation Ltd | 24.36 |
| Niraj Damji Gada | 16.48 |
| Damji Manek Gada | 6.39 |
| Rachana Niraj Gada | 3.91 |
| Dina Damji Gada | 3.02 |
| Harsha Kaushik Gada | 2.31 |
| Kaushik Damji Gada HUF | 1.24 |
| Gada Niraj Damji HUF | 1.07 |
| Kaushik Damji Gada | 0.75 |
| Damji Manek Gada HUF | 0.36 |
| Rakesh Kumar Aggarwal | 6.08 |
| Priyanka Aggarwal | 3.95 |
| Other small HUFs | ~0.06 |
| Key Exit – Brijesh Aggarwal | 0.97 (down from 7.34%) |
Institutional & Public Holding
| Category | Mar ’25 (%) |
|---|---|
| FIIs | 4.82 |
| Public | 24.26 |
| No. of Shareholders | 1,936 |
🧠 Key Takeaways
- Promoter Stake Down: Dropped from 72.73% to 70.93% — likely linked to funding the UK acquisition (Spafax).
- FII Entry: Went from 0% → 4.82% in just 3 quarters. Smart money sniffing a theme play?
- Retail FOMO Rising: Shareholders up from 258 in Mar ’23 to 1,936 in Mar ’25.
- Exit Alert: Brijesh Aggarwal’s holding collapsed from 7.34% to under 1%—someone cashed out during the rally.
Interesting Moves:
- Promoters shaving stake
- FIIs sniffing a re-rating play
- Retail piling in like it’s the next HAL
13. EduInvesting Verdict™
Uravi Defence is either:
- A brilliant early-stage defence tech bet
OR - A rebranded LED bulb company with delusions of artillery
It has everything an EduInvesting watcher loves:
- Name change drama ✅
- Microcap to multibagger dreams ✅
- High P/E with low PAT ✅
- British acquisition with a ₹35 Cr price tag ✅
- Unproven integration and scale risk ✅✅✅
Final EduTake:
We’ll salute this stock if its missiles hit their mark. But right now, it’s firing fog signals more than rockets.
Metadata
– Written by EduInvesting Research | July 12, 2025
– Tags: Defence Stocks, Microcap, Uravi, Spafax, Acquisition, Smallcap India, Automotive Lighting, Re-rating Stocks, FIIs, Military-Tech
