Optiemus Infracom Limited

Technology — Electronics & Computer Distribution · NSE

₹788.00+₹28.00 (+3.68%)

DalalBaazaar Score

52 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by negative free cash flow, small-cap size, which brings sharper price swings, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

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

What does this company do?

Optiemus Infracom Limited, together with its subsidiaries, trades in mobile handset and mobile accessories in India and internationally.

IndustryElectronics & Computer Distribution

SectorTechnology

Employees43

Annual revenue₹1,753 Cr

How does it make money?

Turns over ₹1,753 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹8 left at the operating level before interest, tax and depreciation. Each of its 43 employees supports ₹40.77 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹40.77 Cr

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?Little sign of one

Returns on capital of 10.4% 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 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 +54% while net margin moved +3% 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+54%

Margin effect+3%

DalalBaazaar Score

52/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ P/E of 96.8x is demanding — it needs sustained high growth to justify
✗ P/E is 28% above its own historical median of 75.9x — expensive by its own standards
✗ P/B of 9.00x is a steep premium to book

Quality vs. Valuation

Company Quality

57/ 100

Average

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

Valuation

23/ 100

Expensive

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

96.8x

3Y Median

75.9x

40 monthly readings · mean 76.8x · range 39.9x–123.2x

Sector Median

16.5x

median of 4 sector peers

⚠️Current valuation is approximately 28% above its 3y median of 75.9x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 485% above the peer median of 16.5x.

vs. its own history

Expensive

75.9x median over 40 months · +28%

vs. sector peers

Expensive

16.5x median of 4 peers · +485%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

55.5x

PEG

5.91

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Margins are compressing
EBITDA margin has slipped from 9.3% to 7.7% over 3 years.
Return on capital is falling
ROCE has declined from 13.2% to 10.4% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 4 high

🔴Debt has risen sharplyFinancial
Total debt is up 217% over 3 years, from ₹118 Cr to ₹373 Cr.
🔴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.
🔴Inventory building faster than salesFinancial
Inventory up 174% against revenue up 54% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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?

Margins are being competed away
EBITDA margin has fallen from 9.3% to 7.7%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The price already assumes success
The stock trades 28% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Size brings its own risk
Small 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 12% a year✓ 15.4% CAGR
Latest reported year was 102.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 6%✓ 7.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹324 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✓ 10.4%
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

4 good · 4 neutral · 3 weak

Market Cap

₹7,105 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

96.8x

Expensive

Expensive — verify against sector peers

P/B Ratio

9.00x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹8.14

Profitable

Profitable on a per-share basis

ROE

8.5%

Moderate

Moderate capital efficiency

ROCE

10.4%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.45x

Low

Conservative leverage

Revenue Growth (YoY)

102.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

46.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹324 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

2.7%

Weak

Thin margins leave little room for error

Net Margin

3.3%

Average

Average bottom-line conversion

Current Ratio

1.45

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.21

Defensive

Steadier than the market

52W Range Position

79%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

775.8 / 651.1

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

53.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,142 Cr	₹1,528 Cr	₹1,869 Cr	₹1,753 Cr	+15.4%
EBITDA	₹106 Cr	₹102 Cr	₹131 Cr	₹134 Cr	+8.0%
EBITDA Margin	9.3%	6.7%	7.0%	7.7%	—
PAT (Net Profit)	₹42 Cr	₹57 Cr	₹63 Cr	₹66 Cr	+16.4%
EPS	₹4.88	₹6.62	₹7.33	₹7.39	+14.9%
ROE	10.9%	13.3%	9.5%	8.5%	—
ROCE	13.2%	16.8%	12.8%	10.4%	—
Total Debt	₹118 Cr	₹164 Cr	₹198 Cr	₹373 Cr	+46.8%
Free Cash Flow	-₹99 Cr	-₹21 Cr	-₹96 Cr	-₹324 Cr	—

🟢 Revenue has grown at 15.4% a year over 3 years.

🟢 EBITDA has grown at 8.0% a year over 3 years.

🔴 EBITDA Margin has fallen from 9.3% to 7.7% over 3 years (-1.7 pts).

🟢 PAT (Net Profit) has grown at 16.4% a year over 3 years.

🟢 EPS has grown at 14.9% a year over 3 years.

🔴 ROE has fallen from 10.9% to 8.5% over 3 years (-2.4 pts).

🔴 ROCE has fallen from 13.2% to 10.4% over 3 years (-2.8 pts).

🔴 Total Debt has grown at 46.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,838 Cr

Total Liabilities

₹1,016 Cr

Cash & Equivalents

₹32 Cr

Operating Cash Flow

-₹12 Cr

Capex

-₹312 Cr

Shareholding (proxy)

Institutional Holding

4.3%

Insider Holding

72.5%

Corporate Actions

Ex-Dividend Date

07 Jun 2023

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

5 mixed1 general

Here's Why We Think Optiemus Infracom (NSE:OPTIEMUS) Is Well Worth Watching

Simply Wall Street, 23 Sept

20% upper circuit! Optiemus Infracom shares record largest gain in 3 yrs on Nothing CMF JV, new screen prote..

ET Manufacturing, 22 SeptPrice 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.

Optiemus Infracom Share Price rises 9.32%: valuation check

Univest, 24 AugPrice 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.

Optiemus Infracom shares extend two-day rally to 33%: Here are two reasons

Moneycontrol.com, 23 SeptPrice 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.

Optiemus Infracom To Acquire 51.1% Stake In Joint Venture With Nothing Electronics

Sahi, 22 SeptM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Optiemus Infracom zooms 20% on huge volumes as CMF expands partnership

Business Standard, 22 SeptPartnership

🟡Mixed / dependsA partnership, whose value depends entirely on terms that a headline will not carry. Worth reading the filing before assuming either way.

Watch Items

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

DalalBaazaar Thesis

StrongGrowth

MiddlingBusiness Quality · Financial Health · Risk

WeakProfitability · Valuation

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. 4 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive · see Key things to watch ↑