Om Galaxy Limited

Basic Materials — Building Materials · BSE

₹87.00−₹0.25 (−0.29%)

DalalBaazaar Score

64 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

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

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

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

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

What does this company do?

Om Galaxy Limited, through its subsidiaries, develops, manufactures, and sells precise injection for pipe fitting, automotive, industrial modules in India, North America, Asia, and Africa.

IndustryBuilding Materials

SectorBasic Materials

Employees585

Annual revenue₹124 Cr

How does it make money?

Turns over ₹124 Cr a year. Of every ₹100 of sales, about ₹13 reaches shareholders as profit, with ₹26 left at the operating level before interest, tax and depreciation. Each of its 585 employees supports ₹21.2 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹21.2 lakh

Who are its competitors?

The closest listed comparisons in its industry are ULTRATECH CEMENT LIMITED, GRASIM INDUSTRIES LTD, AMBUJA CEMENTS LTD, SHREE CEMENT LIMITED. 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 23.2%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 22.2% against a peer median of 7.4% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE7.4%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +24% while net margin moved +30% 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+24%

Margin effect+30%

DalalBaazaar Score

64/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✓ Profits have been consistent from year to year
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

68/ 100

Good

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

Valuation

69/ 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

18.4x

Sector Median

36.2x

median of 4 sector peers

🟢Against its sector it trades 49% below the peer median of 36.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

36.2x median of 4 peers · -49%

vs. generic bands

Fair

15x–35x

EV/EBITDA

10.1x

PEG

1.07

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 22.1% to 26.4% over 3 years.
High return on capital employed
ROCE of 23.2% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 28.9% to 19.8% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 28.9% to 23.2% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 2 watch

🟡Free cash flow is negativeFinancial
Free cash flow was -₹12 Cr in the latest year.
🟡Inventory building faster than salesFinancial
Inventory up 75% against revenue up 24% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 23.2% 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.
Margin expansion has further to run
EBITDA margin has risen from 22.1% to 26.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 49% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

Growth barely outpaces inflation
Revenue compounding at 7.3% 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 28.9% to 19.8%. 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 24%✓ 26.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹12 Cr
Profit that never becomes cash eventually stops being profit.
3Revenue growth stays above 5% a year✓ 7.3% CAGR
Latest reported year was 10.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Debt / EBITDA stays below 2x✓ 1.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 20%✓ 23.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 10 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

Price history

Quick Metrics

5 good · 5 neutral · 1 weak

Market Cap

₹295 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

18.4x

Fair

Fairly valued against the generic band

P/B Ratio

2.39x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹4.72

Profitable

Profitable on a per-share basis

ROE

22.2%

Strong

Strong capital efficiency

ROCE

23.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.45x

Low

Conservative leverage

Revenue Growth (YoY)

10.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

4.7%

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

-₹18 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

9.5%

Good

Assets are working hard

Operating Margin

20.5%

Good

Healthy core-business profitability

Net Margin

12.9%

Good

Strong bottom-line conversion

Current Ratio

1.20

Adequate

Adequate, but no real cushion

52W Range Position

55%

Mid-range

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹100 Cr	₹105 Cr	₹113 Cr	₹124 Cr	+7.3%
EBITDA	₹22 Cr	₹25 Cr	₹30 Cr	₹33 Cr	+13.8%
EBITDA Margin	22.1%	23.9%	26.5%	26.4%	—
PAT (Net Profit)	₹10 Cr	₹12 Cr	₹15 Cr	₹16 Cr	+17.2%
ROE	28.9%	24.0%	23.6%	19.8%	—
ROCE	28.9%	27.0%	28.8%	23.2%	—
Total Debt	₹31 Cr	₹32 Cr	₹25 Cr	₹38 Cr	+7.3%
Free Cash Flow	-₹20 Cr	-₹2 Cr	₹10 Cr	-₹12 Cr	—

🟢 Revenue has grown at 7.3% a year over 3 years.

🟢 EBITDA has grown at 13.8% a year over 3 years.

🟢 EBITDA Margin has risen from 22.1% to 26.4% over 3 years (+4.3 pts).

🟢 PAT (Net Profit) has grown at 17.2% a year over 3 years.

🔴 ROE has fallen from 28.9% to 19.8% over 3 years (-9.2 pts).

🔴 ROCE has fallen from 28.9% to 23.2% over 3 years (-5.7 pts).

🔴 Total Debt has grown at 7.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹175 Cr

Total Liabilities

₹92 Cr

Cash & Equivalents

₹2 Cr

Operating Cash Flow

₹35 Cr

Capex

-₹47 Cr

Shareholding (proxy)

Institutional Holding

2.3%

Insider Holding

78.1%

Peer Comparison

Company	P/E	ROE
ULTRATECH CEMENT LIMITED	37.6x	11.1%
GRASIM INDUSTRIES LTD	34.8x	5.5%
AMBUJA CEMENTS LTD	20.4x	7.4%
SHREE CEMENT LIMITED	49.7x	7.0%

Recent News

1 mixed5 general

OM GALAXY LIMITED Share Price

Upstox, 16 Oct

OM Galaxy Share Price Falls 9.92%: Price Action

Univest, 12 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Compare INN.TECH.PAC with

Equitymaster, 15 Oct

Om Galaxy Ltd. IPO Review - Om Galaxy Ltd. IPO Dates, Issue Price, Subscription and Allotment Status

The Economic Times, 08 Sept

Om Galaxy to raise ₹105 crore via IPO on BSE SME

BusinessLine, 08 Sept

Om Galaxy Limited IPO Opens on Thursday, September 10, 2026

Outlook Business, 09 Sept

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

MiddlingValuation

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.

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