UCAL Limited (UCAL) AI Stock Analysis

• Market Cap: ₹2.43B
• Dividend Yield: N/A
• Average Volume (3M): 1.58K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.03
• Revenue Growth: 5.70%
• EPS Growth: -18.05%
• Country: IN
• Employees: 630
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): -2.02
• Shares Outstanding: 22,113,625
• 10 Day Avg. Volume: 1,111
• 30 Day Avg. Volume: 1,580
• PEG Ratio: 0.50
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 0.37
• P/FCF Ratio: 61.33
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: ₹111.00 ▲(0.05% Upside)

The score is primarily held back by weak financial performance (ongoing net losses and rising leverage), despite revenue growth and improved free cash flow. Technicals are moderately supportive in the short term but show mixed momentum signals. Valuation remains pressured by negative earnings and no dividend yield data.

Positive Factors

Revenue Growth

Sustained 10.8% revenue growth indicates the company is expanding sales and securing business with OEMs and aftermarket channels. Over 2–6 months this supports scale economics, strengthens bargaining power with suppliers, and provides runway to invest in R&D and product improvements.

Stable Gross Margin

A stable ~43% gross margin points to durable manufacturing efficiency and pricing ability on core components. This structural margin buffer helps absorb SG&A or R&D spend and improves the odds of restoring operating profitability if fixed-cost recovery and product mix are managed.

Positive Free Cash Flow

Turning free cash flow positive is a durable sign of improved cash conversion and financial discipline. It reduces reliance on external funding, supports capex and servicing of debt, and provides flexibility for strategic investments even while accounting earnings remain weak.

Negative Factors

Persistent Net Losses

Consecutive annual net losses and a declining EBIT margin reflect underlying profitability issues. Over a multi-month horizon this erodes retained capital, weakens return metrics, and forces difficult tradeoffs between cost cutting, R&D, and maintaining commercial relationships needed for long-term growth.

Rising Leverage

An increase in debt-to-equity from 0.72 to 0.88 signals rising financial leverage. For a company with negative earnings, higher leverage raises interest and refinancing risk, constrains strategic flexibility, and can limit the capacity to fund capex or absorb cyclical downturns without external support.

Declining Operating Cash Flow

A marked fall in operating cash flow despite positive free cash flow suggests weaker core cash generation or reliance on one-time cash items or working-capital swings. This undermines sustainable internal funding for operations and investments unless operational cash conversion improves.

UCAL Limited Business Overview & Revenue Model

Company Description

UCAL Limited engages in the manufacturers of fuel management systems for the automotive sector in India. The company offers air & fuel systems emission controls, powertrain, including fuel injection system parts, mechanical carburetor, mechanical throttle body assembly, intake throttle valve, electronic throttle body, hydro carbon doser, fuel rails, electric air suction valve, electric purge valve, solenoid variable valve timing, and diesel fuel filter housing; pumps, such as oil pump, variable pressure oil pump, variable displacement oil pump, vacuum pump, electric vacuum pump, electric coolant pump, and electric oil pump. It also offers automotive electronics, including 3-in-1 sensors, t-map sensors, fuel level sensors, tyre pressure monitoring sensors, reverse parking sensors, hall / inductive sensors, CR controllers, timers, relays & controllers, DC DC converters, ecu speed modules, reverse speed modules, sound alerts (e-horn), indicators, ems services, and buzzer / hooter; manufacturing services, such as pressure die casting products, precision machined parts &, components for automotive, and applications; and built-to-print curated products, includes water outlet, and accelerated pedal sensors. In addition, the company offers engineering services, which include analysis and benchmarking; design, drawing, and modelling; computational analysis and simulation; testing and validation; design for manufacturing; system calibration; and value addition/value engineering services. The company sells its products under the UCAL brand. It also exports its products. The company was formerly known as UCAL Fuel Systems Limited and changed its name to UCAL Limited in June 2023. UCAL Limited was incorporated in 1985 and is based in Chennai, India.

How the Company Makes Money

UCAL generates revenue through the sale of its automotive components and systems to a diverse clientele, including original equipment manufacturers (OEMs) and aftermarket customers. The company's primary revenue streams include the production of carburetors, fuel pumps, and other engine-related components, which are essential for vehicle performance and efficiency. UCAL also benefits from strategic partnerships with leading automotive brands, allowing it to secure long-term contracts for supply and development projects. Additionally, the company leverages its expertise in precision engineering to offer customized solutions, further enhancing its market position and revenue potential. Factors contributing to UCAL's earnings include a growing automotive market, increasing demand for fuel-efficient technologies, and a strong emphasis on research and development to innovate and expand its product offerings.

UCAL Limited Financial Statement Overview

Summary

Mixed fundamentals: revenue grew 10.8% (2024–2025), but profitability is weak with net losses and a declining EBIT margin. Balance sheet is moderately stable but leverage increased (debt-to-equity 0.72 to 0.88). Cash flow improved with positive free cash flow in 2025, though operating cash flow declined sharply.

Income Statement

UCAL Limited's revenue grew by 10.8% from 2024 to 2025, indicating positive sales momentum. However, the company has been struggling with profitability, as evidenced by negative net income in the last two years and a declining EBIT margin. The gross profit margin remains stable at around 43%, but the net profit margin is negative, highlighting challenges in controlling costs and achieving profitability.

Balance Sheet

The company's debt-to-equity ratio increased from 0.72 in 2024 to 0.88 in 2025, indicating rising leverage. Despite this, the equity ratio is stable at around 42%, suggesting a balanced capital structure. Return on equity is negative due to net losses, which is a concern for shareholders. Overall, the balance sheet shows moderate financial stability with some risk due to increasing debt levels.

Cash Flow

UCAL Limited's operating cash flow decreased significantly from 2024 to 2025, impacting its ability to generate cash from operations. However, free cash flow turned positive in 2025, showing improvement in cash management. The operating cash flow to net income ratio is positive, indicating that the company is generating cash despite net losses. The free cash flow to net income ratio is also positive, reflecting better cash flow management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	7.97B	7.19B	8.20B	7.74B
Gross Profit	3.43B	3.14B	3.37B	3.32B
EBITDA	585.88M	479.99M	656.73M	1.03B
Net Income	-162.80M	-252.59M	8.53M	348.86M
Balance Sheet
Total Assets	8.42B	8.01B	7.82B	7.78B
Cash, Cash Equivalents and Short-Term Investments	81.70M	48.21M	4.58M	11.96M
Total Debt	3.12B	2.68B	2.24B	2.45B
Total Liabilities	4.88B	4.30B	3.89B	3.86B
Stockholders Equity	3.55B	3.71B	3.93B	3.92B
Cash Flow
Free Cash Flow	47.58M	-494.80M	431.02M	489.21M
Operating Cash Flow	146.10M	389.48M	781.78M	805.42M
Investing Cash Flow	-69.31M	-821.31M	-331.64M	-294.57M
Financing Cash Flow	-68.50M	399.14M	-88.73M	-826.13M

UCAL Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 110.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:UCAL, the sentiment is Negative. The current price of 110.95 is below the 20-day moving average (MA) of 112.57, below the 50-day MA of 113.78, and below the 200-day MA of 136.45, indicating a bearish trend. The MACD of -1.13 indicates Positive momentum. The RSI at 46.17 is Neutral, neither overbought nor oversold. The STOCH value of 20.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:UCAL.

UCAL Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
PRITIKAUTO	58 Neutral	₹2.17B	13.12	―	―	26.03%	-10.27%
AUTOIND	55 Neutral	₹3.44B	30.26	―	―	3.93%	-55.16%
PPAP	55 Neutral	₹2.80B	162.23	―	1.17%	2.75%	―
UCAL	51 Neutral	₹2.43B	-9.84	―	―	5.70%	-18.05%
SHIVAMAUTO	47 Neutral	₹2.83B	-4.92	―	―	-11.18%	-22.17%
SETCO	38 Underperform	₹1.81B	-1.67	―	―	12.77%	-2.59%