Oil Country Tubular Limited

Energy — Oil & Gas Equipment & Services · NSE

₹79.00−₹1.05 (−1.31%)

DalalBaazaar Score

41 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Oil Country Tubular Limited manufactures and sells casing, tubing, and drill pipes used in the oil and gas drilling and exploration sector in India and internationally.

IndustryOil & Gas Equipment & Services

SectorEnergy

Employees187

Annual revenue₹70 Cr

How does it make money?

Turns over ₹70 Cr a year. Of every ₹100 of sales, about ₹-88 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 187 employees supports ₹37.5 lakh of revenue a year, the signature of a people-led business.

EBITDA margin9.0%

Net margin-87.7%

Revenue / employee₹37.5 lakh

Who are its competitors?

The closest listed comparisons in its industry are RELIANCE INDUSTRIES LTD, OIL AND NATURAL GAS CORP., BHARAT PETROLEUM CORP LT, INDIAN OIL CORP LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

RELIANCE INDUSTRIES LTDP/E 21.9x · ROE 8.3%

OIL AND NATURAL GAS CORP.P/E 6.4x · ROE 11.7%

BHARAT PETROLEUM CORP LTP/E 7.3x · ROE 17.1%

INDIAN OIL CORP LTDP/E 5.3x · ROE 15.4%

What is its competitive advantage?Little sign of one

Returns on capital of -21.5% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE-21.5%

ROE-31.1%

Peer median ROE15.4%

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 +40115% while net margin moved -100% 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+40115%

Margin effect-100%

DalalBaazaar Score

41/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative
✗ ROE has fallen by 73.0 points over the period

Quality vs. Valuation

Company Quality

43/ 100

Weak

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

Valuation

25/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

P/E (Trailing)

Not meaningful

P/B

2.08x

EV/EBITDA

73.1x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 62% over 3 years.
Very low debt
Debt/Equity of 0.13x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention4

Margins are compressing
EBITDA margin has slipped from 73230.9% to 9.0% over 3 years.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 41.9% to -31.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 21.4% to -21.5% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only -58.9x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹61 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 73221.9 points, from 73230.9% to 9.0%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from -4.3x to -58.9x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹10 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 62% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 73230.9% to 9.0%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 3.9x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Returns on shareholder capital are falling
ROE has dropped from 41.9% to -31.1%. 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.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
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.

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

1Revenue growth stays above 479% a year✓ 638.1% CAGR
Latest reported year was -29.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 7%✓ 9.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 3.9x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹10 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ -58.9x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

5 / 11 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
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

1 good · 3 neutral · 7 weak

Market Cap

₹444 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

2.08x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹-13.03

Loss-making

Negative earnings per share — the business is losing money

ROE

-31.1%

Weak

Weak capital efficiency

ROCE

-21.5%

Weak

Low return on total capital employed

Debt/Equity

0.13x

Low

Conservative leverage

Revenue Growth (YoY)

-29.0%

Shrinking

Sales are contracting

Profit Growth (YoY)

-93.0%

Falling

Profits are shrinking

Dividend Yield

None

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

Free Cash Flow

-₹10 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹79

Operating Margin

-88.8%

Weak

Thin margins leave little room for error

Net Margin

-107.7%

Weak

Very little revenue reaches the bottom line

Current Ratio

3.67

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.35

Defensive

Steadier than the market

52W Range Position

83%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

76.9 / 67.6

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

66.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹0 Cr	₹18 Cr	₹123 Cr	₹70 Cr	+638.1%
EBITDA	₹128 Cr	₹2 Cr	₹46 Cr	₹6 Cr	-63.3%
EBITDA Margin	73230.9%	8.4%	37.4%	9.0%	—
PAT (Net Profit)	₹105 Cr	-₹70 Cr	-₹32 Cr	-₹61 Cr	—
EPS	₹23.63	₹-15.91	₹-7.1	₹-12.01	—
ROE	41.9%	-36.2%	-13.8%	-31.1%	—
ROCE	21.4%	-17.5%	-6.8%	-21.5%	—
Total Debt	₹66 Cr	₹90 Cr	₹45 Cr	₹25 Cr	-27.7%
Free Cash Flow	₹169 Cr	-₹19 Cr	₹30 Cr	-₹10 Cr	—

🟢 Revenue has grown at 638.1% a year over 3 years.

🔴 EBITDA has shrunk at 63.3% a year over 3 years.

🔴 EBITDA Margin has fallen from 73230.9% to 9.0% over 3 years (-73221.9 pts).

🔴 PAT (Net Profit) has turned negative, from ₹105 Cr to -₹61 Cr.

🔴 EPS has turned negative, from ₹23.63 to ₹-12.01.

🔴 ROE has fallen from 41.9% to -31.1% over 3 years (-73.0 pts).

🔴 ROCE has fallen from 21.4% to -21.5% over 3 years (-42.9 pts).

🟢 Total Debt has shrunk at 27.7% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹169 Cr to -₹10 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹314 Cr

Total Liabilities

₹116 Cr

Total Debt

₹25 Cr

Cash & Equivalents

₹8 Cr

Operating Cash Flow

-₹4 Cr

Capex

-₹6 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

71.6%

Corporate Actions

Ex-Dividend Date

29 May 2014

Peer Comparison

Company	P/E	ROE
RELIANCE INDUSTRIES LTD	21.9x	8.3%
OIL AND NATURAL GAS CORP.	6.4x	11.7%
BHARAT PETROLEUM CORP LT	7.3x	17.1%
INDIAN OIL CORP LTD	5.3x	15.4%

Recent News

6 general

Oil Country Tubular (OILCOUNTUB) Share/Stock Price Live, NSE

TechGraph, 09 Oct

Oil Country Tubular Lower Circuit Streak: Day 2 Price and Data

Univest, 13 Oct

OCTG (Oil Country Tubular Goods) Market Size, Forecasts 2035

Global Market Insights Inc., 16 Jul

OCTG Market Size, Share, Trends, Growth, Report 2035

Market Research Future, 15 Sept

Oil Country Tubular Share Price Near 52-Week High, Key View

Univest, 12 Oct

Kamineni Hospitals acquires 9.30% stake in Oil Country Tubular

scanx.trade, 30 Sept

Watch Items

Revenue growth is negative (-29.0%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🔴Business QualityWeak4.7/20

🟡Financial HealthAdequate12.1/20

🟢GrowthStrong13/20

🔴ProfitabilityWeak2.5/15

🔴ValuationDemanding5.1/15

🔴RiskHigh4/10

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 479% a year638.1% CAGR
✓EBITDA margin holds above 7%9.0%
✗Debt / EBITDA falls below 3x3.9x
✗Free cash flow remains positive-₹10 Cr
✗Interest cover stays above 3x-58.9x