Omfurn India Limited

Sector n/a · NSE

₹65.00₹0.00 (0.00%)

DalalBaazaar Score

52 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

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

In simple words: Reasonable but unspectacular business quality, 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, 7:47 pm

Understanding the Business

The 60-second version of Omfurn India 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 ₹86 Cr a year. Of every ₹100 of sales, about ₹7 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Little sign of one

Returns on capital of 14.6% 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.

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +23% while net margin moved +31% 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+23%

Margin effect+31%

DalalBaazaar Score

52/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

57/ 100

Average

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

Valuation

88/ 100

Cheap

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

6.5x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 12.5% to 14.5% over 3 years.
Very low debt
Debt/Equity of 0.16x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 15.2% to 9.5% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 20.2% to 14.6% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 1 high · 3 watch

🔴Receivables growing faster than salesFinancial
Receivables up 112% against revenue up 23% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹11 Cr in the latest year.
🟡Inventory building faster than salesFinancial
Inventory up 58% against revenue up 23% — stock may not be moving.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 44% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 12.5% to 14.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
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?

Sales are being booked faster than collected
Receivables are up 112% against revenue up 23%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 7.2% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 15.2% to 9.5%. 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.

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

1EBITDA margin holds above 13%✓ 14.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹11 Cr
Profit that never becomes cash eventually stops being profit.
3Revenue growth stays above 5% a year✓ 7.2% CAGR
Latest reported year was 2.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Debt / EBITDA stays below 2x✓ 0.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 12%✓ 14.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

3 / 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

1 good · 8 neutral · 2 weak

Market Cap

₹77 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

9.5%

Moderate

Moderate capital efficiency

ROCE

14.6%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.16x

Low

Conservative leverage

Revenue Growth (YoY)

2.7%

Modest

Modest growth

Profit Growth (YoY)

-2.0%

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

-₹11 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Gross Margin

32.5%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

7.3%

Average

Average bottom-line conversion

Current Ratio

2.32

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

53.0 / 55.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

70.2

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹70 Cr	₹80 Cr	₹84 Cr	₹86 Cr	+7.2%
EBITDA	₹9 Cr	₹8 Cr	₹12 Cr	₹13 Cr	+12.7%
EBITDA Margin	12.5%	9.6%	14.6%	14.5%	—
PAT (Net Profit)	₹4 Cr	₹4 Cr	₹6 Cr	₹6 Cr	+17.3%
EPS	₹4.78	₹4.45	₹5.46	—	—
ROE	15.2%	7.0%	10.9%	9.5%	—
ROCE	20.2%	11.7%	16.3%	14.6%	—
Total Debt	₹11 Cr	₹15 Cr	₹15 Cr	₹10 Cr	-2.7%
Free Cash Flow	₹1 Cr	₹1 Cr	-₹6 Cr	-₹11 Cr	—

🟢 Revenue has grown at 7.2% a year over 3 years.

🟢 EBITDA has grown at 12.7% a year over 3 years.

🟢 EBITDA Margin has risen from 12.5% to 14.5% over 3 years (+2.0 pts).

🟢 PAT (Net Profit) has grown at 17.3% a year over 3 years.

🔴 ROE has fallen from 15.2% to 9.5% over 3 years (-5.7 pts).

🔴 ROCE has fallen from 20.2% to 14.6% over 3 years (-5.5 pts).

🟢 Total Debt has shrunk at 2.7% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹1 Cr to -₹11 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹100 Cr

Total Liabilities

₹34 Cr

Cash & Equivalents

₹6 Cr

Operating Cash Flow

-₹8 Cr

Capex

-₹4 Cr

Recent News

1 mixed5 general

Omfurn India Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 10 Sept

Naman Industries Proxima (NSEI:NAMAN) - Stock Analysis

Simply Wall Street, 09 Oct

Omfurn India Ltd. Peer Comparison – Compare with Others

Value Research, 11 Sept

Omfurn India Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 10 Sept

Q4 results 2026: BHEL to Paytm among companies to declare Q4 earnings next week; check full list here

Livemint, 03 MayResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

EUROPRATIK Stock Price and Chart — NSE:EUROPRATIK

TradingView, 23 Sept

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.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingBusiness Quality · Valuation

WeakProfitability · Risk

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. 1 high-severity red flag sits above this conclusion and should be read first.

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