Om Infra Limited

Industrials — Engineering & Construction · NSE

₹69.07−₹0.14 (−0.20%)

DalalBaazaar Score

54 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

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

In simple words: The business is earning a fairly low return on the money invested in it, 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, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Om Infra Limited, together with its subsidiaries, engages in the design, detail engineering, manufacture, supply, installation, testing, and commissioning of hydro mechanical equipment for hydroelectric power and irrigation projects in India and internationally.

IndustryEngineering & Construction

SectorIndustrials

Employees647

Annual revenue₹500 Cr

How does it make money?

Turns over ₹500 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 647 employees supports ₹77.2 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹77.2 lakh

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., ADANI PORT & SEZ LTD, SIEMENS 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?Little sign of one

Returns on capital of 3.9% 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.

Peer median ROE14.1%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -37% while net margin moved +155% 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-37%

Margin effect+155%

DalalBaazaar Score

54/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROCE of 3.9% is below 10% — capital is not working hard
• ROCE has been broadly stable
✗ EBITDA margin of 7.3% is thin — little cushion if costs rise
✗ Net margin of 6.3% is slim

Quality vs. Valuation

Company Quality

51/ 100

Average

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

Valuation

72/ 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.

Historical Valuation

Current P/E

18.8x

3Y Median

32.6x

40 monthly readings · mean 48.3x · range 21.0x–161.1x

Sector Median

30.1x

median of 3 sector peers

🟢Current valuation is approximately 42% below its 3y median of 32.6x. 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 38% below the peer median of 30.1x.

vs. its own history

Cheap

32.6x median over 40 months · -42%

vs. sector peers

Cheap

30.1x median of 3 peers · -38%

vs. generic bands

Fair

15x–35x

EV/EBITDA

20.0x

PEG

1.11

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 5.1% to 7.3% over 3 years.
Debt is being paid down
Total debt is down 42% over 3 years.
Very low debt
Debt/Equity of 0.11x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 6.5% to 3.9% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Receivables growing faster than salesFinancial
Receivables up 28% against revenue up -37% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹11 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 5.1% to 7.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 42% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 42% 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 38% 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?

Sales are being booked faster than collected
Receivables are up 28% against revenue up -37%. 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.

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

1EBITDA margin holds above 5%✓ 7.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Free cash flow remains positive✗ -₹11 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 2.8x
How much operating profit can fall before interest stops being comfortably covered.
5ROCE stays above 8%✗ 3.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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

4 good · 3 neutral · 4 weak

Market Cap

₹665 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

18.8x

Fair

Fairly valued against the generic band

P/B Ratio

0.87x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹3.68

Profitable

Profitable on a per-share basis

ROE

2.7%

Weak

Weak capital efficiency

ROCE

3.9%

Weak

Low return on total capital employed

Debt/Equity

0.11x

Low

Conservative leverage

Revenue Growth (YoY)

19.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-42.7%

Falling

Profits are shrinking

Dividend Yield

0.72%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹11 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

7.3%

Average

Average margins

Net Margin

6.3%

Average

Average bottom-line conversion

Current Ratio

1.50

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.47

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

74.5 / 80.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

17.4

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹799 Cr	₹1,084 Cr	₹713 Cr	₹500 Cr	-14.5%
EBITDA	₹41 Cr	₹103 Cr	₹32 Cr	₹36 Cr	-3.6%
EBITDA Margin	5.1%	9.5%	4.4%	7.3%	—
PAT (Net Profit)	₹13 Cr	₹47 Cr	₹36 Cr	₹21 Cr	+16.9%
EPS	₹1.34	₹4.91	₹3.73	₹2.13	+16.9%
ROE	1.9%	6.5%	4.8%	2.7%	—
ROCE	6.5%	12.2%	5.3%	3.9%	—
Total Debt	₹149 Cr	₹106 Cr	₹71 Cr	₹86 Cr	-16.7%
Free Cash Flow	-₹346 Cr	₹67 Cr	₹4 Cr	-₹11 Cr	—

🔴 Revenue has shrunk at 14.5% a year over 3 years.

🔴 EBITDA has shrunk at 3.6% a year over 3 years.

🟢 EBITDA Margin has risen from 5.1% to 7.3% over 3 years (+2.2 pts).

🟢 PAT (Net Profit) has grown at 16.9% a year over 3 years.

🟢 EPS has grown at 16.9% a year over 3 years.

🟡 ROE has held roughly flat at 2.7% over 3 years.

🔴 ROCE has fallen from 6.5% to 3.9% over 3 years (-2.6 pts).

🟢 Total Debt has shrunk at 16.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,464 Cr

Total Liabilities

₹656 Cr

Cash & Equivalents

₹22 Cr

Operating Cash Flow

-₹4 Cr

Capex

-₹7 Cr

Shareholding (proxy)

Institutional Holding

6.6%

Insider Holding

68.1%

Corporate Actions

Dividend Rate

₹0.5

Ex-Dividend Date

04 Sept 2026

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
ADANI PORT & SEZ LTD	29.9x	14.1%
SIEMENS LTD	88.8x	10.5%

Recent News

2 mixed4 general

Om Infra share price gains 5% on contract win worth Rs 569 crore

Moneycontrol.com, 28 JulPrice 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.

Om Infra Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Small-cap infra stock under ₹100 jumps 3%, showing resilience against stock market sell-off

Livemint, 12 Aug

Is Om Infra the Best Stock in Its Sector? A Look at the Numbers

Univest, 05 Oct

Om Infra wins ₹29.01 crore order from Uttar Pradesh Jal Nigam

scanx.trade, 28 Jul

OM Infra Shares Soar 12% After Winning Rs 569 Crore Irrigation Project

Equitypandit, 28 JulPrice 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.

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

MiddlingGrowth

WeakBusiness Quality · Profitability · 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.

4 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑