Oswal Pumps Limited

Industrials — Electrical Equipment & Parts · NSE

₹249.35−₹8.50 (−3.30%)

DalalBaazaar Score

68 / 100

🟢 Good

Verdict

NEUTRAL

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, 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, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Oswal Pumps Limited manufactures and sells solar pumps in India and internationally. The company offers solar-powered and grid-connected submersible and monoblock pumps, electric motors, accessories, pump control, control panel, and solar modules under the Oswal brand.

IndustryElectrical Equipment & Parts

SectorIndustrials

Employees1,805

Annual revenue₹2,041 Cr

How does it make money?

Turns over ₹2,041 Cr a year. Of every ₹100 of sales, about ₹18 reaches shareholders as profit, with ₹26 left at the operating level before interest, tax and depreciation. Each of its 1,805 employees supports ₹1.13 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.13 Cr

Who are its competitors?

The closest listed comparisons in its industry are SIEMENS LTD, ABB INDIA LIMITED, HAVELLS INDIA 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 29.7%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 22.4% against a peer median of 17.1% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE17.1%

What is the outlook?

3 analysts covering the stock expect revenue to grow about 20.6% and earnings to grow about 43.2% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+20.6%

Est. earnings growth+43.2%

Analysts3

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 +452% while net margin moved +99% 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+452%

Margin effect+99%

DalalBaazaar Score

68/ 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

71/ 100

Good

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

Valuation

86/ 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

8.3x

2Y Median

16.7x

18 monthly readings · mean 24.3x · range 7.3x–86.7x

Sector Median

88.8x

median of 3 sector peers

🟢Current valuation is approximately 50% below its 2y median of 16.7x. 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 91% below the peer median of 88.8x.

vs. its own history

Cheap

16.7x median over 18 months · -50%

vs. sector peers

Cheap

88.8x median of 3 peers · -91%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

5.6x

PEG

0.07

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 16.1% to 26.2% over 3 years.
High return on capital employed
ROCE of 29.7% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.14x 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 43.3% to 22.4% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 51.9% to 29.7% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 3 high

🔴Debt has risen sharplyFinancial
Total debt is up 250% over 3 years, from ₹68 Cr to ₹237 Cr.
🔴Free cash flow negative for 3 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Receivables growing faster than salesFinancial
Receivables up 1473% against revenue up 452% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 29.7% 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 16.1% to 26.2%. 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 50% 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 91% 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 1473% against revenue up 452%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 43.3% to 22.4%. 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
3 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 58% a year✓ 76.7% CAGR
Latest reported year was -7.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 24%✓ 26.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹212 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 27%✓ 29.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 12 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
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 3 neutral · 3 weak

Market Cap

₹2,843 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

8.3x

Cheap

Cheap against the generic band

P/B Ratio

1.60x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹30.07

Profitable

Profitable on a per-share basis

ROE

22.4%

Strong

Strong capital efficiency

ROCE

29.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.14x

Low

Conservative leverage

Revenue Growth (YoY)

-7.9%

Shrinking

Sales are contracting

Profit Growth (YoY)

-43.1%

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

-₹212 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

8.6x

Flat

At or above the trailing multiple — no earnings uplift is being priced in

Operating Margin

14.5%

Average

Average margins

Net Margin

16.6%

Good

Strong bottom-line conversion

Current Ratio

4.55

Comfortable

Healthy short-term liquidity

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

265.9 / 282.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

16.9

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹370 Cr	₹745 Cr	₹1,409 Cr	₹2,041 Cr	+76.7%
EBITDA	₹60 Cr	₹155 Cr	₹421 Cr	₹535 Cr	+107.8%
EBITDA Margin	16.1%	20.8%	29.9%	26.2%	—
PAT (Net Profit)	₹34 Cr	₹98 Cr	₹281 Cr	₹376 Cr	+122.4%
EPS	₹3	₹8.57	₹24.62	₹33.96	+124.5%
ROE	43.3%	54.5%	60.7%	22.4%	—
ROCE	51.9%	70.0%	81.2%	29.7%	—
Total Debt	₹68 Cr	₹221 Cr	₹466 Cr	₹237 Cr	+51.9%
Free Cash Flow	₹25 Cr	-₹9 Cr	-₹192 Cr	-₹212 Cr	—

🟢 Revenue has grown at 76.7% a year over 3 years.

🟢 EBITDA has grown at 107.8% a year over 3 years.

🟢 EBITDA Margin has risen from 16.1% to 26.2% over 3 years (+10.1 pts).

🟢 PAT (Net Profit) has grown at 122.4% a year over 3 years.

🟢 EPS has grown at 124.5% a year over 3 years.

🔴 ROE has fallen from 43.3% to 22.4% over 3 years (-20.9 pts).

🔴 ROCE has fallen from 51.9% to 29.7% over 3 years (-22.2 pts).

🔴 Total Debt has grown at 51.9% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹25 Cr to -₹212 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,146 Cr

Total Liabilities

₹463 Cr

Cash & Equivalents

₹99 Cr

Operating Cash Flow

-₹77 Cr

Capex

-₹135 Cr

Shareholding (proxy)

Institutional Holding

4.0%

Insider Holding

75.7%

Analyst Consensus

Recommendations

3 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹384.33

+54.1% vs CMP

Target Range

₹340 – ₹420

Peer Comparison

Company	P/E	ROE
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%
HAVELLS INDIA LIMITED	43.5x	17.1%

Recent News

1 positive3 mixed2 general

Oswal Pumps FY26 PAT rises 34.1% to INR3,763 million

scanx.trade, 18 Oct

Oswal Pumps Limited Recorded A 7.2% Miss On Revenue: Analysts Are Revisiting Their Models

Simply Wall Street, 13 AugAnalyst view

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

OSWALPUMPS Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

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

Oswal Pumps share price rises 8% after ₹273 crore order win | Rally ahead or resistance wall?

Livemint, 23 SeptOrder win

🟢Potentially positiveOrder wins add to future revenue, though the effect depends on the contract's size against annual sales and on when it is executed.

Oswal Pumps shares gain 8% on bagging ₹273 crore solar rooftop order in Telangana; key details

Upstox, 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.

Oswal Pumps shares to test Rs 290? Expert flags damaged chart structure, advises exit

Business Today, 02 Aug

Watch Items

Revenue growth is negative (-7.9%) on the latest reported period — check if this is one-off or a trend.
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

StrongBusiness Quality · Financial Health · Growth · Profitability · Valuation

WeakRisk

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. 3 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 ↑