The Orissa Minerals Development Company Limited

Basic Materials — Steel · NSE

₹3,471.80+₹6.60 (+0.19%)

DalalBaazaar Score

32 / 100

🔴 Weak

Verdict

HIGH RISK

Risk

Very High

Driven by negative shareholders' equity — the company owes more than it owns, short-term liabilities exceed short-term assets, negative free cash flow.

In simple words: The company owes more than it owns — years of losses have wiped out its net worth, with both sales and profits growing well. Solvency — whether it can keep funding itself at all — is 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 The Orissa Minerals Development Company Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

The Orissa Minerals Development Company Limited mines and markets iron ore and manganese ore in India. It produces and sells sponge iron. The company was incorporated in 1918 and is headquartered in Bhubaneswar, India.

IndustrySteel

SectorBasic Materials

Annual revenue₹94 Cr

How does it make money?

Turns over ₹94 Cr a year. Of every ₹100 of sales, about ₹-3 reaches shareholders as profit, with ₹16 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, JINDAL STEEL LIMITED, STEEL AUTHORITY OF INDIA. 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 14.8% 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 ROE10.8%

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 +165% while net margin moved -93% 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+165%

Margin effect-93%

DalalBaazaar Score

32/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Shareholders' equity is negative — accumulated losses exceed the capital in the business

Quality vs. Valuation

Company Quality

36/ 100

Weak

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

Valuation

30/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

625.5x

2Y Median

1047.3x

28 monthly readings · mean 1097.2x · range 665.0x–1964.7x

Sector Median

18.2x

median of 4 sector peers

🟢Current valuation is approximately 40% below its 2y median of 1047.3x. 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 3341% above the peer median of 18.2x.

vs. its own history

Cheap

1047.3x median over 28 months · -40%

vs. sector peers

Expensive

18.2x median of 4 peers · +3341%

vs. generic bands

N/A

Multiples unreliable — equity base is negative

EV/EBITDA

152.4x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Margins are improving
EBITDA margin is up from -6.1% to 16.0% over 3 years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

6 items require attention · 4 high · 2 watch

🔴Negative shareholders' equityFinancial
Liabilities exceed assets — accumulated losses have wiped out the company's net worth.
🔴Thin interest coverageFinancial
Operating profit covers interest only 0.7x — little room if earnings dip.
🔴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.
🔴The company is lossmakingFinancial
Net profit of -₹3 Cr in the latest reported year.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹41 Cr in the latest year.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.35 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -6.1% to 16.0%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 40% 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.

🔴 Bear CaseWhat could go wrong?

Solvency comes before everything else
Liabilities exceed assets. Until net worth is rebuilt, the equity is a claim on a business that owes more than it owns, and further losses or a funding squeeze can leave shareholders with nothing.
The debt load needs earnings to hold up
Debt is 14.1x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
A premium to the sector to defend
It trades 3341% above the peer median. That premium needs a reason that persists, or it closes.
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

1Revenue growth stays above 29% a year✓ 38.4% CAGR
Latest reported year was 47.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 14%✓ 16.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 14.1x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹41 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 0.7x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

3 / 10 checks passed

✗ Shareholders' equity is positive (assets exceed liabilities)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ 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

3 good · 4 neutral · 4 weak

Market Cap

₹2,083 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

625.5x

Expensive

Expensive — verify against sector peers

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹5.55

Profitable

Profitable on a per-share basis

ROE

Not meaningful

Negative equity

Return on equity can't be read when equity itself is negative

ROCE

14.8%

Distorted

Distorted by the negative net worth — read this alongside the solvency flag, not on its own

Debt/Equity

Not meaningful

Negative equity

Shareholders' equity is negative, so this ratio can't be read

Revenue Growth (YoY)

47.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

92.8%

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

-₹41 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

30.6%

Good

Healthy core-business profitability

Net Margin

3.2%

Average

Average bottom-line conversion

Current Ratio

0.35

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.63

Defensive

Steadier than the market

52W Range Position

15%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

3628.9 / 4096.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

31.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹36 Cr	₹82 Cr	₹65 Cr	₹94 Cr	+38.4%
EBITDA	-₹2 Cr	₹30 Cr	-₹22 Cr	₹15 Cr	—
EBITDA Margin	-6.1%	36.7%	-34.6%	16.0%	—
PAT (Net Profit)	-₹17 Cr	₹3 Cr	-₹40 Cr	-₹3 Cr	—
EPS	₹-27.57	₹4.7	₹-67.04	₹-4.85	—
ROCE	—	—	-19.6%	14.8%	—
Total Debt	₹182 Cr	₹9 Cr	₹186 Cr	₹212 Cr	+5.1%
Free Cash Flow	-₹60 Cr	-₹26 Cr	₹58 Cr	-₹41 Cr	—

🟢 Revenue has grown at 38.4% a year over 3 years.

🟢 EBITDA has turned positive, from -₹2 Cr to ₹15 Cr.

🟢 EBITDA Margin has risen from -6.1% to 16.0% over 3 years (+22.1 pts).

🟢 ROCE has risen from -19.6% to 14.8% over 3 years (+34.3 pts).

🔴 Total Debt has grown at 5.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹580 Cr

Total Liabilities

₹634 Cr

Cash & Equivalents

₹6 Cr

Operating Cash Flow

₹35 Cr

Capex

-₹76 Cr

Shareholding (proxy)

Institutional Holding

9.9%

Insider Holding

57.6%

Corporate Actions

Ex-Dividend Date

07 Sept 2017

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
JINDAL STEEL LIMITED	39.1x	5.3%
STEEL AUTHORITY OF INDIA	16.5x	7.1%

Recent News

1 mixed5 general

The Orissa Minerals Development Company Limited (ORISSAMINE.NS) Stock Price, News, Quote & History

Yahoo! Finance Canada, 01 Oct

Orissa Minerals Development (ORISSAMINE.NS) Slips 3.38% to ₹3,460.4 as the Stock Retreats Toward ₹3,287 Support - Volatility Surface

siam.in, 08 Oct

The Orissa Minerals Development Company Share: Bull Case vs Bear Case for 2026

Univest, 25 Sept

Orissa Minerals Development Company Ltd Forms Death Cross, Signalling Bearish Trend

MarketsMojo, 15 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Orissa Minerals Development Company Ltd. Peer Comparison – Compare with Others

Value Research, 26 Aug

The Orissa Minerals Development Company Ltd. Share Price Live Today

CNBC TV18, 03 Jan

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongGrowth

WeakBusiness Quality · Financial Health · Profitability · Valuation · Risk

Points for each in the Score ↑

Avoid until solvency is resolved

The Orissa Minerals Development Company Limited owes more than it owns. Whatever the operating numbers show, the equity is a residual claim on a business with negative net worth, and that question has to be settled before any of the rest is worth weighing. 4 high-severity red flags sit above this conclusion and should be read first.

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