Owais Metal and Mineral Processing Limited

Sector n/a · NSE

₹1,359.45+₹64.70 (+5.00%)

DalalBaazaar Score

64 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

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

In simple words: Strong business and financial position, 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

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

How does it make money?

Turns over ₹213 Cr a year. Of every ₹100 of sales, about ₹22 reaches shareholders as profit, with ₹31 left at the operating level before interest, tax and depreciation.

What is its competitive advantage?Some evidence

ROCE of 46.3% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

DalalBaazaar Score

64/ 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

73/ 100

Good

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

Valuation

18/ 100

Expensive

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

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

EV/EBITDA

37.7x

PEG

—

What's Good / What's Bad

🟢 What's Going Well4

Return on equity is rising
ROE has improved from -22.2% to 42.1%.
Return on capital is rising
ROCE has improved from -3.6% to 46.3%.
High return on capital employed
ROCE of 46.3% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.23x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention0

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

Red Flags

2 items require attention · 2 high

🔴Debt has risen sharplyFinancial
Total debt is up 688% over 2 years, from ₹3 Cr to ₹25 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.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 46.3% 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.

🔴 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.
Several serious flags at once
2 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

1EBITDA margin holds above 29%✓ 31.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 43%✓ 46.3%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 9 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
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 4 neutral · 1 weak

Market Cap

₹2,472 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹25.86

Profitable

Profitable on a per-share basis

ROE

42.1%

Strong

Strong capital efficiency

ROCE

46.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.23x

Low

Conservative leverage

Revenue Growth (YoY)

166.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

204.0%

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

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Gross Margin

32.5%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

22.0%

Good

Strong bottom-line conversion

Current Ratio

2.18

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

69.5 / 74.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

45.9

Neutral momentum

Financial Trend (3-Year)

Metric	FY23	FY24	FY25	2Y CAGR
Revenue	—	₹80 Cr	₹213 Cr	—
EBITDA	-₹0 Cr	₹23 Cr	₹66 Cr	—
EBITDA Margin	—	28.3%	31.0%	—
PAT (Net Profit)	-₹0 Cr	₹15 Cr	₹47 Cr	—
EPS	₹-0.07	₹11.41	₹25.86	—
ROE	-22.2%	22.6%	42.1%	—
ROCE	-3.6%	28.7%	46.3%	—
Total Debt	₹3 Cr	₹14 Cr	₹25 Cr	+180.7%
Free Cash Flow	-₹0 Cr	-₹39 Cr	-₹1 Cr	—

🟢 EBITDA has turned positive, from -₹0 Cr to ₹66 Cr.

🟢 EBITDA Margin has risen from 28.3% to 31.0% over 2 years (+2.7 pts).

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹47 Cr.

🟢 EPS has turned positive, from ₹-0.07 to ₹25.86.

🟢 ROE has risen from -22.2% to 42.1% over 2 years (+64.3 pts).

🟢 ROCE has risen from -3.6% to 46.3% over 2 years (+49.9 pts).

🔴 Total Debt has grown at 180.7% a year over 2 years.

Balance Sheet & Cash Flow — FY2025

Total Assets

₹198 Cr

Total Liabilities

₹86 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹16 Cr

Capex

-₹17 Cr

Recent News

1 negative5 general

Owais Metal & Mineral Processing Upper Circuit Today

Univest, 14 Oct

OWAIS Share Price - Live NSE: OWAIS Stock Price & Chart

Upstox, 16 Oct

Owais Metal FY26 profit falls 96% as revenue drops 42%

scanx.trade, 29 MayResults

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

Owais Metal And Mineral Processing Ltd Key Financial Ratios – Valuation, Profitability & More

Value Research, 21 Sept

Owais Metal And Mineral Processing Ltd | Stock Share Price Live

MarketSmith India, 23 Mar

Owais Metal and Mineral Processing (NSE:OWAIS) Knows How To Allocate Capital Effectively

Simply Wall Street, 18 Nov

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
2 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Profitability

MiddlingGrowth · Valuation

WeakRisk

Points for each in the Score ↑

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you. 2 high-severity red flags sit above this conclusion and should be read first.

1 of 4 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑