Orosil Smiths India Limited

Consumer Cyclical — Luxury Goods · BSE

₹6.36+₹0.10 (+1.60%)

DalalBaazaar Score

73 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

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

In simple words: Strong business and financial position, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:02 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Orosil Smiths India Limited manufactures, fabricates, purchases, trades/deals in, and sells various gold, silver, silver ornaments/utensils, and other items of gold, silver, and allied business.

IndustryLuxury Goods

SectorConsumer Cyclical

Employees5

Annual revenue₹3 Cr

How does it make money?

Turns over ₹3 Cr a year. Of every ₹100 of sales, about ₹866 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 5 employees supports ₹53.0 lakh of revenue a year, the signature of a people-led business.

EBITDA margin8.6%

Net margin865.6%

Revenue / employee₹53.0 lakh

Who are its competitors?

The closest listed comparisons in its industry are TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED, ASIAN PAINTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

TRENT LTDP/E 87.2x · ROE 25.9%

AVENUE SUPERMARTS LIMITEDP/E 69.9x · ROE 12.7%

ASIAN PAINTS LIMITEDP/E 46.9x · ROE 22.3%

What is its competitive advantage?Some evidence

ROCE of 105.3% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE105.3%

ROE90.5%

Peer median ROE25.9%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +259% while net margin moved -1947% 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+259%

Margin effect-1947%

DalalBaazaar Score

73/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.07 — historically steadier than the index
✗ 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

74/ 100

Good

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

Valuation

75/ 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

1.1x

1.3Y Median

29.9x

16 monthly readings · mean 25.7x · range 1.1x–44.5x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 96% below its 1.3y median of 29.9x. 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 98% below the peer median of 69.2x.

vs. its own history

Cheap

29.9x median over 16 months · -96%

vs. sector peers

Cheap

69.2x median of 4 peers · -98%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

1.1x

P/B

1.16x

EV/EBITDA

97.2x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well6

Margins are improving
EBITDA margin is up from -29.9% to 8.6% over 3 years.
Debt is being paid down
Total debt is down 73% over 3 years.
Return on equity is rising
ROE has improved from -17.0% to 90.5%.
Return on capital is rising
ROCE has improved from -15.7% to 105.3%.
High return on capital employed
ROCE of 105.3% is the mark of a business that converts capital into profit efficiently.
Valuation below its historical average
At 1.1x the stock trades 96% below its own median of 29.9x.

🔴 What Needs Attention1

Free cash flow is negative
The business is not currently covering its capital spending from operations.

Red Flags

2 items require attention · 1 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.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹7 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 105.3% 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 -29.9% to 8.6%. 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 73% 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 96% 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 98% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

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 40% a year✓ 53.1% CAGR
Latest reported year was -49.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 7%✓ 8.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹7 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 102%✓ 105.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 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

6 good · 3 neutral · 2 weak

Market Cap

₹26 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

1.1x

Cheap

Cheap against the generic band

P/B Ratio

1.16x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹5.72

Profitable

Profitable on a per-share basis

ROE

90.5%

Strong

Strong capital efficiency

ROCE

105.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.82x

Moderate

Moderate leverage

Revenue Growth (YoY)

-49.8%

Shrinking

Sales are contracting

Profit Growth (YoY)

3653.0%

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

-₹7 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹6.36

Operating Margin

201.1%

Good

Healthy core-business profitability

Net Margin

1068.2%

Good

Strong bottom-line conversion

Current Ratio

3.02

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.07

Defensive

Steadier than the market

52W Range Position

67%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

6.6 / 6.5

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

40.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1 Cr	₹1 Cr	₹3 Cr	₹3 Cr	+53.1%
EBITDA	-₹0 Cr	-₹0 Cr	-₹0 Cr	₹0 Cr	—
EBITDA Margin	-29.9%	-48.7%	-3.4%	8.6%	—
PAT (Net Profit)	-₹0 Cr	-₹0 Cr	₹1 Cr	₹23 Cr	—
EPS	₹-0.08	₹-0.1	₹0.15	₹5.55	—
ROE	-17.0%	-25.1%	27.4%	90.5%	—
ROCE	-15.7%	-22.3%	-10.0%	105.3%	—
Total Debt	₹1 Cr	₹1 Cr	₹0 Cr	₹0 Cr	-35.3%
Free Cash Flow	-₹0 Cr	-₹0 Cr	₹0 Cr	-₹7 Cr	—

🟢 Revenue has grown at 53.1% a year over 3 years.

🟢 EBITDA has turned positive, from -₹0 Cr to ₹0 Cr.

🟢 EBITDA Margin has risen from -29.9% to 8.6% over 3 years (+38.5 pts).

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹23 Cr.

🟢 EPS has turned positive, from ₹-0.08 to ₹5.55.

🟢 ROE has risen from -17.0% to 90.5% over 3 years (+107.6 pts).

🟢 ROCE has risen from -15.7% to 105.3% over 3 years (+121.0 pts).

🟢 Total Debt has shrunk at 35.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹30 Cr

Total Liabilities

₹4 Cr

Total Debt

₹0 Cr

Cash & Equivalents

₹4 Cr

Operating Cash Flow

-₹7 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

74.0%

Peer Comparison

Company	P/E	ROE
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%
ASIAN PAINTS LIMITED	46.9x	22.3%

Recent News

2 mixed4 general

Orosil Smiths India (BSE:531626) - Stock Analysis

Simply Wall Street, 10 Oct

Orosil Smiths India Ltd. Peer Comparison – Compare with Others

Value Research, 02 Sept

Orosil Smiths closes trading window from July 1 till Q1FY27 results

scanx.trade, 22 JunResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Orosil Smiths India Q1 FY27 Results: Revenue Rs 0.44 Cr, PAT Rs 0.73 Cr and Key Highlights

Univest, 11 AugResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Orosil Smiths India Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 04 Sept

B K Narula HUF acquires 0.07% stake in Orosil Smiths

scanx.trade, 30 Sept

Watch Items

Revenue growth is negative (-49.8%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong15.1/20

🟢Financial HealthStrong14/20

🟢GrowthStrong13/20

🟢ProfitabilityStrong13.5/15

🟢ValuationAttractive13.2/15

🔴RiskHigh4/10

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 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 40% a year53.1% CAGR
✓EBITDA margin holds above 7%8.6%
✗Free cash flow remains positive-₹7 Cr
✓Debt / EBITDA stays below 2x0.9x
✓ROCE stays above 102%105.3%