Otco International Limited

Real Estate — Real Estate Services · BSE

₹13.12₹0.00 (0.00%)

DalalBaazaar Score

33 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by moderate debt load, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, though profits are falling even as sales grow. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Otco International Limited provides IT solutions and services in India.

IndustryReal Estate Services

SectorReal Estate

Employees6

Who are its competitors?

The closest listed comparisons in its industry are DLF LIMITED, GODREJ PROPERTIES LTD, OBEROI REALTY LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

DLF LIMITEDP/E 36.6x · ROE 10.3%

GODREJ PROPERTIES LTDP/E 30.2x · ROE 8.4%

OBEROI REALTY LIMITEDP/E 23.5x · ROE 14.7%

What is its competitive advantage?Little sign of one

Returns on capital of 1.1% 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.

ROCE1.1%

ROE0.9%

Peer median ROE10.3%

DalalBaazaar Score

33/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Profit has declined at 32.9% a year
✗ Profit fell 14.5% in the latest year

Quality vs. Valuation

Company Quality

34/ 100

Weak

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

Valuation

20/ 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.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

P/E (Trailing)

Not meaningful

P/B

6.23x

EV/EBITDA

351.6x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 15% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 3.9% to 1.1% — often a sign of competition or overexpansion.

Red Flags

1 item require attention · 1 watch

🟡Profit is decliningFinancial
Net profit is down 70% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 15% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
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?

The debt load needs earnings to hold up
Debt is 63.9x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
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

1Debt / EBITDA falls below 3x✗ 63.9x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
2Free cash flow remains positive✓ ₹2 Cr
Profit that never becomes cash eventually stops being profit.
3ROCE stays above 8%✗ 1.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
4Interest cover stays above 4x✓ 6.9x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

5 / 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

2 good · 3 neutral · 6 weak

Market Cap

₹17 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

6.23x

Rich

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

EPS (TTM)

₹-0.22

Loss-making

Negative earnings per share — the business is losing money

ROE

0.9%

Weak

Weak capital efficiency

ROCE

1.1%

Weak

Low return on total capital employed

Debt/Equity

1.38x

Moderate

Moderate leverage

Revenue Growth (YoY)

64.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-14.5%

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

₹2 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹13.12

Operating Margin

-137.7%

Weak

Thin margins leave little room for error

Net Margin

-33.5%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.33

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.42

Defensive

Steadier than the market

52W Range Position

100%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

12.7 / 12.4

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

100.0

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1 Cr	₹2 Cr	₹1 Cr	—	—
EBITDA	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	-17.6%
EBITDA Margin	8.2%	6.8%	9.3%	—	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	-32.9%
EPS	₹0.06	₹0.05	₹0.02	₹0.02	-30.7%
ROE	3.3%	2.4%	1.1%	0.9%	—
ROCE	3.9%	3.0%	1.3%	1.1%	—
Total Debt	₹4 Cr	₹6 Cr	₹6 Cr	₹4 Cr	-5.4%
Free Cash Flow	-₹3 Cr	-₹2 Cr	₹1 Cr	₹2 Cr	—

🔴 EBITDA has shrunk at 17.6% a year over 3 years.

🔴 PAT (Net Profit) has shrunk at 32.9% a year over 3 years.

🔴 EPS has shrunk at 30.7% a year over 3 years.

🔴 ROE has fallen from 3.3% to 0.9% over 3 years (-2.3 pts).

🔴 ROCE has fallen from 3.9% to 1.1% over 3 years (-2.8 pts).

🟢 Total Debt has shrunk at 5.4% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹3 Cr to ₹2 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹9 Cr

Total Liabilities

₹6 Cr

Total Debt

₹4 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹2 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

80.9%

Corporate Actions

Ex-Dividend Date

05 Sept 2002

Peer Comparison

Company	P/E	ROE
DLF LIMITED	36.6x	10.3%
GODREJ PROPERTIES LTD	30.2x	8.4%
OBEROI REALTY LIMITED	23.5x	14.7%

Recent News

2 mixed1 negative3 general

Top 65 Stocks Under 10 Rupees To Buy In October 2026 | High Potential Picks

Samco, 17 Oct

OTCO International shareholders approve share consolidation, borrowing limits

scanx.trade, 17 Sept

OTCO International reports standalone net loss of Rs 0.04 crore in the June 2026 quarter

Business Standard, 12 AugResults

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

Otco Intl Q1 Results FY27: Net Loss Rs 0.04 Cr, Revenue Rs 0 crore

Univest, 14 AugResults

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

OTCO International consolidates shares, expands scope at 45th AGM

scanx.trade, 19 Aug

Hi-Tech Pipes consolidated net profit declines 4.21% in the June 2026 quarter

Business Standard, 12 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

🔴Business QualityWeak6.1/20

🟢Financial HealthStrong14.5/20

🔴GrowthWeak2.4/20

🔴ProfitabilityWeak2.6/15

🔴ValuationDemanding2.6/15

🟡RiskModerate4.9/10

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation.

This thesis breaks if

✗Debt / EBITDA falls below 3x63.9x
✓Free cash flow remains positive₹2 Cr
✗ROCE stays above 8%1.1%
✓Interest cover stays above 4x6.9x