Why is Universal Cables Ltd. ?
1
Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.52 times
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.52 times
- The company has been able to generate a Return on Equity (avg) of 6.69% signifying low profitability per unit of shareholders funds
2
Healthy long term growth as Operating profit has grown by an annual rate 28.02%
3
The company has declared Positive results for the last 4 consecutive quarters
- NET SALES(Latest six months) At Rs 1,608.19 cr has Grown at 25.49%
- PAT(Latest six months) At Rs 82.51 cr has Grown at 25.93%
- ROCE(HY) Highest at 10.83%
4
With ROCE of 7.2, it has a Fair valuation with a 1.7 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 83.51%, its profits have risen by 82.5% ; the PEG ratio of the company is 0.3
5
Majority shareholders : Promoters
6
Market Beating performance in long term as well as near term
- Along with generating 83.51% returns in the last 1 year, the stock has outperformed BSE500 in the last 3 years, 1 year and 3 months
How much should you hold?
- Overall Portfolio exposure to Universal Cables should be less than 10%
- Overall Portfolio exposure to Cables - Electricals should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Cables - Electricals)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Universal Cables for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
Universal Cables
84.46%
1.55
53.74%
Sensex
-8.75%
-0.67
13.06%
Quality key factors
Factor
Value
Sales Growth (5y)
18.74%
EBIT Growth (5y)
28.02%
EBIT to Interest (avg)
1.57
Debt to EBITDA (avg)
4.97
Net Debt to Equity (avg)
0.62
Sales to Capital Employed (avg)
0.88
Tax Ratio
24.98%
Dividend Payout Ratio
15.53%
Pledged Shares
0
Institutional Holding
5.22%
ROCE (avg)
5.74%
ROE (avg)
6.69%
Valuation Key Factors 
Factor
Value
P/E Ratio
24
Industry P/E
47
Price to Book Value
2.10
EV to EBIT
23.19
EV to EBITDA
19.72
EV to Capital Employed
1.68
EV to Sales
1.70
PEG Ratio
0.30
Dividend Yield
0.35%
ROCE (Latest)
7.24%
ROE (Latest)
8.62%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
Bearish
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
Bullish
OBV
No Trend
Bullish
Technical Movement
18What is working for the Company
NET SALES(Latest six months)
At Rs 1,608.19 cr has Grown at 25.49%
PAT(Latest six months)
At Rs 82.51 cr has Grown at 25.93%
ROCE(HY)
Highest at 10.83%
DEBTORS TURNOVER RATIO(HY)
Highest at 2.64 times
PBT LESS OI(Q)
Highest at Rs 66.95 cr.
EPS(Q)
Highest at Rs 15.94
-4What is not working for the Company
INTEREST(Latest six months)
At Rs 63.72 cr has Grown at 24.50%
DEBT-EQUITY RATIO(HY)
Highest at 0.62 times
Loading Valuation Snapshot...
Here's what is working for Universal Cables
Net Sales - Quarterly
Highest at Rs 840.27 cr
in the last five quartersMOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Net Sales - Quarterly
At Rs 840.27 cr has Grown at 24.66%
Year on Year (YoY)MOJO Watch
Near term sales trend is positive
Net Sales (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 66.95 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 55.32 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 15.94
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Debtors Turnover Ratio- Half Yearly
Highest at 2.64 times
in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio
Here's what is not working for Universal Cables
Interest - Latest six months
At Rs 63.72 cr has Grown at 24.50%
over previous Half yearly periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Debt-Equity Ratio - Half Yearly
Highest at 0.62 times and Grown
each half year in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio






