Omega Interactive Technologies Limited

Technology — Software - Application · BSE

₹13.06+₹0.62 (+4.98%)

DalalBaazaar Score

66 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Omega Interactive Technologies Limited engages in the information technology business in India. The company is involved in the development and consulting of software. The company was incorporated in 1994 and is based in Mumbai, India.

IndustrySoftware - Application

SectorTechnology

Annual revenue₹149 Cr

How does it make money?

Turns over ₹149 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSULTANCY SERV LT, INFOSYS LIMITED, HCL TECHNOLOGIES LTD, WIPRO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 18.1% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE32.0%

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 +78123% while net margin moved -80% 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+78123%

Margin effect-80%

DalalBaazaar Score

66/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.63 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

65/ 100

Good

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

Valuation

84/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

5.1x

3Y Median

108.8x

40 monthly readings · mean 118.1x · range 0.4x–297.1x

Sector Median

16.5x

median of 4 sector peers

🟢Current valuation is approximately 95% below its 3y median of 108.8x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 69% below the peer median of 16.5x.

vs. its own history

Cheap

108.8x median over 40 months · -95%

vs. sector peers

Cheap

16.5x median of 4 peers · -69%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

8.6x

PEG

0.01

What's Good / What's Bad

🟢 What's Going Well2

Return on equity is rising
ROE has improved from 6.6% to 13.1%.
Return on capital is rising
ROCE has improved from 8.8% to 18.1%.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

5 items require attention · 4 high · 1 watch

🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 31.5 points, from 39.9% to 8.4%.
🔴Receivables growing faster than salesFinancial
Receivables up 117172% against revenue up 78123% — sales are being booked faster than they are collected.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 418% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 18.1% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Priced below its own history
The stock trades 95% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 69% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 39.9% to 8.4%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 117172% against revenue up 78123%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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.
Several serious flags at once
4 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 616% a year✓ 821.4% CAGR
Latest reported year was 272.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 6%✓ 8.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹26 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 15%✓ 18.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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

6 good · 3 neutral · 2 weak

Market Cap

₹109 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

5.1x

Cheap

Cheap against the generic band

P/B Ratio

0.49x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹2.55

Profitable

Profitable on a per-share basis

ROE

13.1%

Moderate

Moderate capital efficiency

ROCE

18.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.42x

Low

Conservative leverage

Revenue Growth (YoY)

272.4%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-56.5%

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

-₹26 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

8.5%

Average

Average margins

Net Margin

5.7%

Average

Average bottom-line conversion

Current Ratio

2.09

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.63

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

16.6 / 24.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

27.6

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹0 Cr	₹0 Cr	₹0 Cr	₹149 Cr	+821.4%
EBITDA	₹0 Cr	-₹0 Cr	₹2 Cr	₹13 Cr	+448.0%
EBITDA Margin	39.9%	-82.8%	11326.8%	8.4%	—
PAT (Net Profit)	₹0 Cr	-₹0 Cr	₹1 Cr	₹9 Cr	+441.7%
EPS	₹0.11	₹-0.18	₹8.59	₹34.9	+574.0%
ROE	6.6%	-0.6%	5.3%	13.1%	—
ROCE	8.8%	-0.5%	10.4%	18.1%	—
Total Debt	—	₹14 Cr	₹10 Cr	₹0 Cr	—
Free Cash Flow	-₹0 Cr	-₹21 Cr	-₹11 Cr	-₹26 Cr	—

🟢 Revenue has grown at 821.4% a year over 3 years.

🟢 EBITDA has grown at 448.0% a year over 3 years.

🔴 EBITDA Margin has fallen from 39.9% to 8.4% over 3 years (-31.5 pts).

🟢 PAT (Net Profit) has grown at 441.7% a year over 3 years.

🟢 EPS has grown at 574.0% a year over 3 years.

🟢 ROE has risen from 6.6% to 13.1% over 3 years (+6.5 pts).

🟢 ROCE has risen from 8.8% to 18.1% over 3 years (+9.3 pts).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹130 Cr

Total Liabilities

₹61 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

-₹26 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

91.5%

Peer Comparison

Company	P/E	ROE
TATA CONSULTANCY SERV LT	17.3x	45.6%
INFOSYS LIMITED	15.8x	32.0%
HCL TECHNOLOGIES LTD	20.4x	24.6%
WIPRO LTD	14.5x	15.9%

Recent News

3 positive3 general

Omega Interactive Technologies Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 01 Sept

Omega Interactive Technologies Ltd. Upper Circuit: Price and Key Data

Univest, 29 Sept

Omega Interactive Technologies approves ₹200 Cr equity fund raise

scanx.trade, 20 Aug

Omega Interactive Slumps After 1:10 Stock Split Adjustment

HDFC Sky, 09 FebCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Omega Interactive Technologies standalone net profit rises 97.29% in the June 2026 quarter

Business Standard, 30 JulResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Stock Split This Week: Omega Interactive Technologies To Trade Ex-Date Soon — When Should You Buy?

NDTV Profit, 01 FebCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingBusiness Quality · Growth · Profitability

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 4 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑