Holmarc Opto-Mechatronics Limited

Sector n/a · NSE

₹108.95+₹4.95 (+4.76%)

DalalBaazaar Score

54 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with modest growth. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

The 60-second version of Holmarc Opto-Mechatronics Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

How does it make money?

Turns over ₹42 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹16 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Some evidence

ROCE of 16.0% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +45% while net margin moved -21% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+45%

Margin effect-21%

DalalBaazaar Score

54/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✓ Profits have been consistent from year to year

Quality vs. Valuation

Company Quality

57/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

35/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

EV/EBITDA

15.7x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 55% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Margins are compressing
EBITDA margin has slipped from 17.8% to 16.1% over 3 years.
Return on equity is falling
ROE has dropped from 30.7% to 13.2% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 36.1% to 16.0% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 2 high

🔴High leverageFinancial
Debt/Equity of 1.95x — earnings must service borrowings before shareholders see anything.
🔴Inventory building faster than salesFinancial
Inventory up 185% against revenue up 45% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 55% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 17.8% to 16.1%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 1.95x. Interest is payable whether or not the business has a good year.
Returns on shareholder capital are falling
ROE has dropped from 30.7% to 13.2%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 10% a year✓ 13.3% CAGR
Latest reported year was 13.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 14%✓ 16.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹1 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 13%✓ 16.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 9 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 7 neutral · 1 weak

Market Cap

₹109 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

13.2%

Moderate

Moderate capital efficiency

ROCE

16.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.95x

High

High leverage

Revenue Growth (YoY)

13.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

9.3%

Modest

Slow profit growth

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹1 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Gross Margin

72.8%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

9.7%

Average

Average bottom-line conversion

Current Ratio

5.48

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

123.9 / 113.8

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

56.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹29 Cr	₹33 Cr	₹37 Cr	₹42 Cr	+13.3%
EBITDA	₹5 Cr	₹6 Cr	₹6 Cr	₹7 Cr	+9.5%
EBITDA Margin	17.8%	16.9%	17.2%	16.1%	—
PAT (Net Profit)	₹4 Cr	₹3 Cr	₹4 Cr	₹4 Cr	+4.7%
EPS	₹3.54	₹3.94	₹3.72	—	—
ROE	30.7%	14.4%	13.7%	13.2%	—
ROCE	36.1%	18.4%	17.1%	16.0%	—
Total Debt	₹1 Cr	—	—	₹1 Cr	-23.3%
Free Cash Flow	₹2 Cr	-₹1 Cr	₹1 Cr	₹1 Cr	-33.0%

🟢 Revenue has grown at 13.3% a year over 3 years.

🟢 EBITDA has grown at 9.5% a year over 3 years.

🔴 EBITDA Margin has fallen from 17.8% to 16.1% over 3 years (-1.7 pts).

🟢 PAT (Net Profit) has grown at 4.7% a year over 3 years.

🔴 ROE has fallen from 30.7% to 13.2% over 3 years (-17.5 pts).

🔴 ROCE has fallen from 36.1% to 16.0% over 3 years (-20.1 pts).

🟢 Total Debt has shrunk at 23.3% a year over 3 years.

🔴 Free Cash Flow has shrunk at 33.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹38 Cr

Total Liabilities

₹7 Cr

Cash & Equivalents

₹4 Cr

Operating Cash Flow

₹5 Cr

Capex

-₹4 Cr

Recent News

1 mixed5 general

Holmarc Opto-Mechatronics Share Price Rise: Key Metrics

Univest, 12 OctPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Declining Stock and Decent Financials: Is The Market Wrong About Holmarc Opto-Mechatronics Limited (NSE:HOLMARC)?

Simply Wall Street, 22 Jan

Holmarc Opto-Mechatronics Ltd. Lower Circuit: Price and Key Data

Univest, 01 Oct

Price Band Hitters, August 24, 2026 at 3:00 PM IST

HDFC Sky, 24 Aug

Holmarc Opto-Mechatronics (NSEI:HOLMARC) - Stock Analysis

Simply Wall Street, 26 Sept

GAUDIUM IVF AND WOMEN HEALTH LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 03 Mar

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingBusiness Quality · Growth · Profitability · Valuation

WeakRisk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑