Risk factor
Very poor trading liquidity
Profitability factor
Undervalued vs peers
About
UCAL Limited, headquartered in Chennai, India, has been a prominent provider of fuel management systems for the automotive sector since its inception in 1985. The company's diverse product portfolio caters to the Indian market and is also exported internationally. Key offerings include multi-point fuel injection components such as throttle body and fuel rail assemblies, high-pressure fuel filters, pressure regulators, and pulsation dampers. For emission control, UCAL manufactures products like positive crankcase ventilation (PCV) valves, intake manifolds, and secondary air valves. The company also produces carburetors for a wide array of applications, from two, three, and four-wheelers to gensets. Its EMS system products encompass specialized throttle bodies, fuel pumps, air compressors, and fuel rail assemblies. Furthermore, UCAL's expertise extends to various pump assemblies, including oil, vacuum, and water pumps, alongside piston-driven, high-pressure impeller, and electronic solenoid fuel pumps. The company is also proficient in high-pressure die-casting, producing components for air intake, steering systems, turbochargers, and other emission control applications, in addition to precision machined parts like shaft second clutches, injector bodies, and transmission and rocker arm shafts. Formerly known as UCAL Fuel Systems Limited, the company officially changed its name to UCAL Limited in June 2023.
Company Valuation
Based on key historical and expected multiples, the stock is undervalued relative to its peers. Specifically, the stock is undervalued on EV/EBITDA, underpriced on P/FC.