UCAL FUEL - PROVIDERS OF BEST FUEL

MANAGEMENT SYSTEMS
UCAL
Fuel
Systems Ltd is a
company which
offers
Comprehensive
Fuel
Management
Systems for the
Auto sector. The
company is
engaged in
manufacturing
pumps, emission
control parts and
also
manufactures components for both ferrous and non-ferrous material. UCAL Fuel
provides customers with end to end solution from product designing to analysis,
testing and validation services. Their products range includes MPFI parts,
Carburettors, Emission Control Products, Oil Pump Assembly, Vaccum Pump
Assembly, Fuel pumps, Water Pump Assembly etc. Their products find usage in
Four Wheelers, Two Wheelers, Gensets etc.
UCAL Fuel is one of the Top 500 stocks, identified by Dynamic Levels Research
based on technical and fundamental research.
UCAL Fuel share price has touched a 52 week high of Rs. 199.80 on 13-Oct-2016
and a 52 week low of Rs. 87.05 on 17-Feb-2016, and is currently trading at Rs.199

Share Holding
The promoters holding in the company stood at 70.27% & Institutions and NonInstitutions hold 0.11% and 29.62% respectively.

Financial Analysis
Quarterly Results
During the quarter ended 30th June 2016, the total income from operations of
UCAL Fuel reported a growth of 22.43% on Y-o-Y basis and stood at Rs. 137.20
crore against Rs. 112.06 crore for the quarter ended 30th June 2015. The operating
profit of UCAL Fuel for the quarter ended 30th June 2016 stood at Rs.14.68 crore
against Rs.7.77 crore for the quarter ended 30th June 2015, growing by 89%.
PAT also grew by 244% and stood at Rs.8.12 crore for the quarter ended 30th June
2016 against Rs. 2.36 crore for the quarter ended 30th June 2015. EPS grew by
242% and stood at Rs. 3.67 for Q1FY17 against Re.1.07 for the quarter ended 30th
June 2015.

Annual Results
The net sales of UCAL Fuel for FY16 stood at Rs.723.65 crore compared to
Rs.737.73 crore in FY15, de-growth of 1.90%. The operating profit also saw a degrowth by 23% and stood at Rs. 42.61 crore in FY16 against Rs.55.52 crore in
FY15.
PAT stood at Rs. 15.47 crore in FY16 against Rs. 24.55 crore in FY15. PAT for the
year was down by 37%. EPS also de-grew by 37% and stood at Rs.7 for FY16
against Rs.11.10 for FY15.

Investment Rationale
In the FY 15-16 auto component industry in India is estimated to have grown at
8% as compared to that of 11% in the previous financial year. The Governments
continued emphasis on domestic manufacturing through its Make in India
program and other incentives, its continued focus on infrastructure and forecast of
a normal monsoon are expected to have a positive influence on the auto and auto
component industry during 2016-2017 and the company is geared to take
advantage of the increased demand.

The market share of carburetors increased marginally in FY 2015-16 and also the
market share in the pump segment increased marginally and the company hopes
to further improve its performance in all segments in 2016-17. The company has
large scope for exports and the there exists a large domestic market for spares
which will benefit the company.
At CMP Rs. 199, UCAL Fuel share price is trading at a P/E of 16.20 the company has
a market cap of Rs. 387.10 crore, we recommend a buy on the stock with a price
target of Rs. 220 for a short term outlook.

Disclaimer
The investment advice or guidance provided by way of recommendations, reports or other ways are solely the personal views of
the research team. Users are advised to use the data for the purpose of information and rely on their own judgment while making
investment decision.
Dynamic Equities Pvt. Ltd - SEBI Investment Advisory Reg. No.: INA300002022

Disclosure
Dynamic Equities Pvt. Ltd. is a member of NSE, BSE, MCX SX and a DP with NSDL & CDSL. It is also engaged in Investment
Advisory Services and Portfolio Management Services. Dynamic Commodities Pvt. Ltd., associate company, is a member of MCX &
NCDEX. We declare that our activities were neither suspended nor we have defaulted with any stock exchange authority with
whom we are registered. SEBI, Exchanges and Depositories have conducted the routine inspection and based on their
observations have issued advise letters or levied minor penalty on for certain operational deviations.
Answers to the Best of our knowledge and belief of Dynamic/ its Associates/ Research Analyst: DYNAMIC/its Associates/
Research Analyst/ his Relative:
Do not have any financial interest / any actual/beneficial ownership in the subject company.
Do not have any other material conflict of interest at the time of publication of the research report
Have not received any compensation from the subject company in the past twelve months
Have not managed or co-managed public offering of securities for the subject company.
Have not received any compensation for brokerage services or any products / services or any compensation or other
benefits from the subject company, nor engaged in market making activity for the subject company
Have not served as an officer, director or employee of the subject company

Article Written by

Upendra Dudhewewala