Synopsis:
Uni Abex has signed a sale agreement for 9.45-acre Thane land to RSVM Hospitality Pvt. Ltd. for ₹244.23 crore, and the transaction, expected to close by January 31, 2026.
The shares of Micro-Cap company, specializing in the manufacture and export of static and centrifugal castings using heat, corrosion, and wear-resistant stainless steel alloys for various critical industrial applications, jumped upto 9 percent. Let’s explore the reason for the rise in this article.
With a market capitalization of Rs. 724.08 crores on Monday, the shares of Uni Abex Alloy Products Ltd jumped upto 9 percent, reaching a high of Rs. 3995.00 per share compared to its previous closing price of Rs. 3663.00 per share.
What Happened
Uni Abex Alloy Products Ltd, engaged in the manufacture and export of static and centrifugal castings using heat, corrosion, and wear-resistant stainless steel alloys for various critical industrial applications, has rallied upto 9 percent in the day’s trade.
Recently the Uni Abex Alloy Products Limited has entered into an agreement to sell its 9.45-acre land and buildings located in Thane to RSVM Hospitality Private Limited for Rs. 244.23 crore (subject to taxes).
The company has received an advance of Rs. 48.85 crore and expects the transaction to be completed by January 31, 2026, pending regulatory approvals. The sale is not related to any promoter group and will not affect the company’s business operations or constitute a significant undertaking under the Companies Act.
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Financials & Others
The company’s revenue declined by 10.91 percent from Rs. 43.98 crore to Rs. 39.18 crore in Q1 FY25-26, while the net profit declined from Rs. 7.26 crores to Rs. 5.56 crores during the same period.
The company shows a strong ROCE of 31.9 percent and an ROE of 26.3 percent, outperforming the industry average PE of 25.0 with a stock PE of 22.8. It also maintains an attractive PEG ratio of 0.58, indicating good value relative to its earnings growth.
It has achieved strong profit growth with a 44.2 percent CAGR over the last five years, maintained a solid 3-year average return on equity (ROE) of 29.3 percent, and consistently paid healthy dividends, with a payout ratio of 18.7 percent.
Uni Abex Alloy Products Limited, part of the Neterwala Group, has been a leading manufacturer and exporter of centrifugal and static castings in heat, corrosion, and wear-resistant stainless steel alloys since 1972. The company is recognized for its excellence in supplying critical components across various industries and is a certified Two-Star Export House.
It serves core industries like iron & steel, petrochemicals, fertilizers, and more. Its manufacturing facility is based in Dharwad, Karnataka, and it is listed on the Bombay Stock Exchange. Uni Abex is known for its advanced technology collaborations with international leaders and is ISO-certified for quality management.
Written by Sridhar J
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