Universal Cables (NSEI:UNIVCABLES) - Share price, News & Analysis

UNIVCABLES fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	2/6
Financial Health	2/6
Dividends	2/6

UNIVCABLES Stock Overview

Universal Cables Limited manufactures and sells electrical and other cables, capacitors, wires and conductors, and other products under the UNISTAR brand name in India and internationally.

Rewards

Price-To-Earnings ratio (6.3x) is below the Indian market (19.4x)

Risk Analysis

Earnings have declined by 8.5% per year over past 5 years

Interest payments are not well covered by earnings

Dividend of 1.11% is not well covered by earnings

Does not have a meaningful market cap (₹5B)

Universal Cables Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Universal Cables
Historical stock prices
Current Share Price	₹136.45
52 Week High	₹215.00
52 Week Low	₹125.10
Beta	0.65
1 Month Change	-5.24%
3 Month Change	-2.61%
1 Year Change	-31.52%
3 Year Change	-33.20%
5 Year Change	45.78%
Change since IPO	103.66%

Recent News & Updates

May 12

Universal Cables' (NSE:UNIVCABLES) Returns On Capital Not Reflecting Well On The Business

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...

Shareholder Returns

	UNIVCABLES	IN Electrical	IN Market
7D	-1.8%	1.3%	0.1%
1Y	-31.5%	11.4%	-1.7%

Return vs Industry: UNIVCABLES underperformed the Indian Electrical industry which returned 11.4% over the past year.

Return vs Market: UNIVCABLES underperformed the Indian Market which returned -1.7% over the past year.

Price Volatility

Is UNIVCABLES's price volatile compared to industry and market?
UNIVCABLES volatility
UNIVCABLES Average Weekly Movement	5.9%
Electrical Industry Average Movement	6.6%
Market Average Movement	6.9%
10% most volatile stocks in IN Market	9.8%
10% least volatile stocks in IN Market	4.5%

Stable Share Price: UNIVCABLES is not significantly more volatile than the rest of Indian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: UNIVCABLES's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1945	961	Y. Lodha	https://www.unistar.co.in

Universal Cables Limited manufactures and sells electrical and other cables, capacitors, wires and conductors, and other products under the UNISTAR brand name in India and internationally. It offers XLPE cables, such as extra high voltage, medium voltage, low voltage, and aeriel bunched cables for use in power transmission and distribution, railways, fertilizers, petrochemical plants, submarine and under waterpower transmission, steel plants, power station wiring, chemical plants, underwater wiring, mines for power distribution, and control and instrumentation circuits. The company also provides PVC power and control cables for use in power distribution, control system, utility network, railway signaling installations, switching stations, textile mills, chemical plants, machine shops, etc.; PVC insulated winding wires and flat motor leads; elastomeric cables for trailing, ship wiring, and defense applications; and mining cables for landline, LHD and SDL machines, drills, coal cutters, stacker-reclaimers, and earth moving equipment.

Universal Cables Fundamentals Summary

How do Universal Cables's earnings and revenue compare to its market cap?
UNIVCABLES fundamental statistics
Market Cap	₹4.68b
Earnings (TTM)	₹749.26m
Revenue (TTM)	₹18.14b

6.3x

P/E Ratio

0.3x

P/S Ratio

Is UNIVCABLES overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
UNIVCABLES income statement (TTM)
Revenue	₹18.14b
Cost of Revenue	₹13.99b
Gross Profit	₹4.15b
Other Expenses	₹3.40b
Earnings	₹749.26m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	21.60
Gross Margin	22.86%
Net Profit Margin	4.13%
Debt/Equity Ratio	53.6%

How did UNIVCABLES perform over the long term?

See historical performance and comparison

Dividends

1.1%

Current Dividend Yield

7%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is UNIVCABLES undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for UNIVCABLES?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for UNIVCABLES. This is calculated by dividing UNIVCABLES's market cap by their current preferred multiple.
What is UNIVCABLES's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₹4.68b

UNIVCABLES key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.6x
Enterprise Value/EBITDA	9.4x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does UNIVCABLES's PE Ratio compare to its peers?

UNIVCABLES PE Ratio vs Peers

The above table shows the PE ratio for UNIVCABLES vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	24.2x

Forward PE

Price-To-Earnings vs Peers: UNIVCABLES is good value based on its Price-To-Earnings Ratio (6.3x) compared to the peer average (24.2x).

Price to Earnings Ratio vs Industry

How does UNIVCABLES's PE Ratio compare vs other companies in the Indian Electrical Industry?

Price-To-Earnings vs Industry: UNIVCABLES is good value based on its Price-To-Earnings Ratio (6.3x) compared to the Indian Electrical industry average (19.1x)

Price to Earnings Ratio vs Fair Ratio

What is UNIVCABLES's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

UNIVCABLES PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	6.3x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate UNIVCABLES's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of UNIVCABLES when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: UNIVCABLES (₹136.45) is trading above our estimate of fair value (₹16.34)

Significantly Below Fair Value: UNIVCABLES is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate UNIVCABLES's PEG Ratio to determine if it is good value.

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Future Growth

How is Universal Cables forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

16.8%

Forecasted Capital Goods industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Universal Cables has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Take a look at our analysis of UNIVCABLES’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
Universal Cables competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Universal Cables performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-8.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: UNIVCABLES has high quality earnings.

Growing Profit Margin: UNIVCABLES's current net profit margins (4.1%) are lower than last year (5.2%).

Past Earnings Growth Analysis

Earnings Trend: UNIVCABLES's earnings have declined by 8.5% per year over the past 5 years.

Accelerating Growth: UNIVCABLES's earnings growth over the past year (11.5%) exceeds its 5-year average (-8.5% per year).

Earnings vs Industry: UNIVCABLES earnings growth over the past year (11.5%) underperformed the Electrical industry 47.6%.

Return on Equity

High ROE: UNIVCABLES's Return on Equity (5.8%) is considered low.

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Financial Health

How is Universal Cables's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: UNIVCABLES's short term assets (₹13.6B) exceed its short term liabilities (₹9.6B).

Long Term Liabilities: UNIVCABLES's short term assets (₹13.6B) exceed its long term liabilities (₹5.0B).

Debt to Equity History and Analysis

Debt Level: UNIVCABLES's net debt to equity ratio (53.3%) is considered high.

Reducing Debt: UNIVCABLES's debt to equity ratio has increased from 42.3% to 53.6% over the past 5 years.

Debt Coverage: UNIVCABLES's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: UNIVCABLES's interest payments on its debt are not well covered by EBIT (1.3x coverage).

Balance Sheet

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Dividend

What is Universal Cables's current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.11%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: UNIVCABLES's dividend (1.11%) is higher than the bottom 25% of dividend payers in the Indian market (0.44%).

High Dividend: UNIVCABLES's dividend (1.11%) is low compared to the top 25% of dividend payers in the Indian market (1.9%).

Stability and Growth of Payments

Stable Dividend: UNIVCABLES has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: UNIVCABLES has only been paying a dividend for 4 years, and since then payments have not increased.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (6.9%), UNIVCABLES's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: UNIVCABLES is paying a dividend but the company has no free cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

5.4yrs

Average management tenure

CEO

Y. Lodha (57 yo)

7.08yrs

Tenure

₹11,923,000

Compensation

Mr. Y. S. Lodha has been Chief Executive Officer of Universal Cables, Ltd. since May 15, 2015. Mr. Lodha has been Managing Director and Additional Director at Universal Cables Limited since February 11, 20...

CEO Compensation Analysis

Compensation vs Market: Y.'s total compensation ($USD152.54K) is above average for companies of similar size in the Indian market ($USD38.35K).

Compensation vs Earnings: Y.'s compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: UNIVCABLES's management team is seasoned and experienced (5.4 years average tenure).

Board Members

Experienced Board: UNIVCABLES's board of directors are considered experienced (7.7 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31