Synopsis:
United Polyfab Gujarat stock surged 5% to hit its upper circuit limit post reporting a 57% and 52% rise in YoY and QoQ net profit, aided by lower growth in expenses.
The shares of this fabric manufacturing firm reported a stellar performance in Q1 that led the company to reach an all-time high. The company has a 3.53 percent shareholding held by Albula Investment Fund Ltd, which is a private equity investment firm based in Port Louis, Mauritius, that publicly holds 9 stocks with a net worth of over Rs. 2,041 crore.
With a market capitalization of Rs 834 crore, the shares of United Polyfab Gujarat Ltd hit an all-time high of Rs 36.35 per share, up by 5 percent from its previous day closing price of Rs 34.62 per share. In the last year, the stock has delivered a robust return of 318 percent.
Q1 Highlights
United Polycab reported a revenue of Rs 146.18 crore in Q1 FY26, up by 6 percent from its Q1 FY25 revenue of Rs 137.73 crore. However, on a QoQ basis, its revenue declined 5 percent from Rs 153.43 crore.
Its expenses grew by just 2.4 percent to Rs 138.61 crore in Q1 FY26 from Rs 135.41 crore in Q1 FY25; however, on a QoQ basis, it declined by 6.6 percent from Rs 148.37 crore.
Coming to its profitability, the company reported a net profit growth of 57 percent to Rs 5.93 crore in Q1 FY26 from Rs 3.77 crore in Q1 FY25. Additionally, on a QoQ basis, its net profit climbed 52 percent from Rs 3.90 crore.
The stock delivered an impressive ROE and ROCE of 20 percent and 14.69 percent, respectively, and is currently trading at a P/E of 42x as compared to its industry average of 23.39x.
United Polyfab Gujarat Limited, located in Ahmedabad, India, specializes in producing and selling a variety of yarns and fabrics. Their product lineup features cotton yarn, dyed fabric, grey fabric, and denim fabric. The company was originally established in 2010 under the name United Polyfab (Unit-II) Limited, but it changed its name to United Polyfab Gujarat Limited in December 2015.
Written by Satyajeet Mukherjee
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