Om Metallogic Limited

Basic Materials — Aluminum · BSE

₹28.85−₹0.55 (−1.87%)

DalalBaazaar Score

66 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

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, 6:59 pm

Understanding the Business

Company site ↗

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

What does this company do?

Om Metallogic Limited, an aluminum recycling company, engages in processing aluminum-based metal scrap to manufacture aluminum alloys in the form of ingots in India. It serves automobiles, construction, electrical transmission application, and food packaging industries.

IndustryAluminum

SectorBasic Materials

Employees17

Annual revenue₹75 Cr

How does it make money?

Turns over ₹75 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹10 left at the operating level before interest, tax and depreciation. Each of its 17 employees supports ₹4.42 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹4.42 Cr

Who are its competitors?

The closest listed comparisons in its industry are HINDALCO INDUSTRIES LTD, VEDANTA LIMITED, TATA STEEL LIMITED, JSW STEEL 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?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 ROE18.7%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +99% while net margin moved +115% 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+99%

Margin effect+115%

DalalBaazaar Score

66/ 100

Good

Weighted across six categories. Every point is explained below.

✗ 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

68/ 100

Good

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

Historical Valuation

Current P/E

4.0x

1.2Y Median

5.5x

14 monthly readings · mean 5.0x · range 2.7x–6.6x

Sector Median

12.2x

median of 4 sector peers

🟢Current valuation is approximately 28% below its 1.2y median of 5.5x. 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 67% below the peer median of 12.2x.

vs. its own history

Cheap

5.5x median over 14 months · -28%

vs. sector peers

Cheap

12.2x median of 4 peers · -67%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

3.5x

PEG

0.06

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 6.5% to 10.0% over 3 years.
Debt is being paid down
Total debt is down 63% 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 Attention2

Return on equity is falling
ROE has dropped from 22.7% to 12.7% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 34.9% to 18.1% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 2 high · 1 watch

🔴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.
🔴Inventory building faster than salesFinancial
Inventory up 202% against revenue up 99% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹15 Cr in the latest year.

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.
Margin expansion has further to run
EBITDA margin has risen from 6.5% to 10.0%. 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 63% 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 28% 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 67% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Returns on shareholder capital are falling
ROE has dropped from 22.7% to 12.7%. 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.
Several serious flags at once
2 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 19% a year✓ 25.7% CAGR
Latest reported year was 57.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 8%✓ 10.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹15 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.6x
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

7 / 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

7 good · 2 neutral · 2 weak

Market Cap

₹23 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

4.0x

Cheap

Cheap against the generic band

P/B Ratio

0.61x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹7.24

Profitable

Profitable on a per-share basis

ROE

19.3%

Strong

Strong capital efficiency

ROCE

18.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.11x

Low

Conservative leverage

Revenue Growth (YoY)

57.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-47.6%

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

-₹14 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

11.9%

Good

Assets are working hard

Operating Margin

11.1%

Average

Average margins

Net Margin

6.3%

Average

Average bottom-line conversion

Current Ratio

4.82

Comfortable

Healthy short-term liquidity

52W Range Position

27%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

28.9 / 29.6

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

49.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹38 Cr	₹39 Cr	₹60 Cr	₹75 Cr	+25.7%
EBITDA	₹2 Cr	₹4 Cr	₹7 Cr	₹8 Cr	+45.3%
EBITDA Margin	6.5%	10.6%	11.1%	10.0%	—
PAT (Net Profit)	₹1 Cr	₹2 Cr	₹4 Cr	₹5 Cr	+62.3%
EPS	₹1.4	₹2.82	₹5.23	—	—
ROE	22.7%	28.9%	34.9%	12.7%	—
ROCE	34.9%	41.5%	47.6%	18.1%	—
Total Debt	₹12 Cr	₹11 Cr	₹10 Cr	₹4 Cr	-28.4%
Free Cash Flow	₹1 Cr	₹1 Cr	₹2 Cr	-₹15 Cr	—

🟢 Revenue has grown at 25.7% a year over 3 years.

🟢 EBITDA has grown at 45.3% a year over 3 years.

🟢 EBITDA Margin has risen from 6.5% to 10.0% over 3 years (+3.5 pts).

🟢 PAT (Net Profit) has grown at 62.3% a year over 3 years.

🔴 ROE has fallen from 22.7% to 12.7% over 3 years (-10.0 pts).

🔴 ROCE has fallen from 34.9% to 18.1% over 3 years (-16.9 pts).

🟢 Total Debt has shrunk at 28.4% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹1 Cr to -₹15 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹49 Cr

Total Liabilities

₹12 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹14 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

60.3%

Peer Comparison

Company	P/E	ROE
HINDALCO INDUSTRIES LTD	12.3x	12.0%
VEDANTA LIMITED	10.4x	18.7%
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%

Recent News

6 general

OM METALLOGIC LIMITED Share Price - Live OML Stock Price & Chart

Upstox, 05 May

Om Metallogic Limited Responds to BSE Clarification on Significant Share Price Movement

scanx.trade, 10 Apr

Om Metallogic IPO Allotment Status Online: Check Steps To Verify Status

Groww, 02 Oct

Om Metallogic IPO : Check IPO date, lot size and Price

HDFC Sky, 25 Sept

Om Metallogic IPO Date, Price, GMP, Review, Details

IndiaIPO, 03 Oct

Om Metallogic Ltd plans to raise Rs. 22.35 crore from IPO | IPO opens on 29 September 2025

Business Standard, 29 Sept

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Growth · Valuation

MiddlingProfitability

WeakBusiness Quality · Risk

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. 2 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 ↑