BSE:531091

Stock Analysis Report

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Executive Summary

United Credit Limited, a non-banking financial company, provides hire purchase, leasing, and other financial services in India.


Snowflake Analysis

Flawless balance sheet and fair value.

Share Price & News

How has United Credit's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 531091's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-9.5%

531091

-1.4%

IN Consumer Finance

-0.3%

IN Market


1 Year Return

-29.0%

531091

-2.6%

IN Consumer Finance

2.0%

IN Market

Return vs Industry: 531091 underperformed the Indian Consumer Finance industry which returned -1.8% over the past year.

Return vs Market: 531091 underperformed the Indian Market which returned 1.6% over the past year.


Shareholder returns

531091IndustryMarket
7 Day-9.5%-1.4%-0.3%
30 Day-13.1%7.0%3.8%
90 Day-11.0%36.4%19.7%
1 Year-26.3%-29.0%0.08%-2.6%3.9%2.0%
3 Year-31.4%-34.0%35.1%27.0%-0.6%-5.3%
5 Year-50.0%-51.8%170.9%147.1%27.0%17.4%

Price Volatility Vs. Market

How volatile is United Credit's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is United Credit undervalued compared to its fair value and its price relative to the market?

7.05x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 531091's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 531091's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 531091 is good value based on its PE Ratio (7.1x) compared to the IN Consumer Finance industry average (11.1x).

PE vs Market: 531091 is good value based on its PE Ratio (7.1x) compared to the Indian market (13.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 531091's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 531091 is good value based on its PB Ratio (0.3x) compared to the IN Consumer Finance industry average (0.5x).


Next Steps

Future Growth

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

31.4%

Forecasted Diversified Financials 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 United Credit 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.


Next Steps

Past Performance

How has United Credit performed over the past 5 years?

39.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 531091 has high quality earnings.

Growing Profit Margin: 531091's current net profit margins (30.2%) are higher than last year (28.3%).


Past Earnings Growth Analysis

Earnings Trend: 531091's earnings have grown significantly by 39.3% per year over the past 5 years.

Accelerating Growth: 531091's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 531091 had negative earnings growth (-59.6%) over the past year, making it difficult to compare to the Consumer Finance industry average (-2.8%).


Return on Equity

High ROE: 531091's Return on Equity (3.6%) is considered low.


Next Steps

Financial Health

How is United Credit's financial position?


Financial Position Analysis

Short Term Liabilities: 531091's short term assets (₹162.8M) exceed its short term liabilities (₹3.6M).

Long Term Liabilities: 531091's short term assets (₹162.8M) exceed its long term liabilities (₹14.8M).


Debt to Equity History and Analysis

Debt Level: 531091 is debt free.

Reducing Debt: 531091 has no debt compared to 5 years ago when its debt to equity ratio was 0.6%.

Debt Coverage: 531091 has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 531091 has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is United Credit current dividend yield, its reliability and sustainability?

5.91%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 531091's dividend (5.91%) is higher than the bottom 25% of dividend payers in the Indian market (0.66%).

High Dividend: 531091's dividend (5.91%) is in the top 25% of dividend payers in the Indian market (2.76%)


Stability and Growth of Payments

Stable Dividend: 531091's dividend payments have been volatile in the past 10 years.

Growing Dividend: 531091's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41.7%), 531091's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

16.6yrs

Average board tenure


CEO

Ashok Dabriwala (65 yo)

14.75yrs

Tenure

₹1,695,399

Compensation

Mr. Ashok Kumar Dabriwala serves as Chairman of United Credit Ltd and has been its Managing Director since November 2005. Mr. Dabriwala has 37 years of experience in leasing, hire purchase, other financial ...


CEO Compensation Analysis

Compensation vs Market: Ashok's total compensation ($USD22.54K) is below average for companies of similar size in the Indian market ($USD49.43K).

Compensation vs Earnings: Ashok's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Ashok Dabriwala
Chairman & MD14.75yrs₹1.70m14.15%
₹ 8.9m
Devashish Dabriwal
Non-Executive Director16.58yrs₹80.00kno data
Raj Choubey
Non-Executive Independent Director17.58yrs₹140.00kno data
Nandanandan Mishra
Non-Executive Independent Director17.58yrs₹110.00kno data
Suresh Saha
Non-Executive Independent Director9.08yrs₹130.00kno data
Rashmi Dabriwal
Non-Executive Promoter Director6.5yrs₹290.00kno data

16.6yrs

Average Tenure

71.5yo

Average Age

Experienced Board: 531091's board of directors are seasoned and experienced ( 16.6 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.


Top Shareholders

Company Information

United Credit Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: United Credit Limited
  • Ticker: 531091
  • Exchange: BSE
  • Founded: 1970
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: ₹63.135m
  • Shares outstanding: 5.33m
  • Website: https://www.unitedcreditltd.com

Number of Employees


Location

  • United Credit Limited
  • 27B Camac Street
  • 8th Floor
  • Kolkata
  • West Bengal
  • 700016
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
531091BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 2005

Biography

United Credit Limited, a non-banking financial company, provides hire purchase, leasing, and other financial services in India. It is also involved in consumer financing, investment, and capital market ope ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/04 12:40
End of Day Share Price2020/08/03 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.