MoneyWorks4Me

Check Before You Invest : Oil Country Tubular Ltd

BSE: 500313 NSE: OILCOUNTUB ISIN: INE591A01010
  |   Sector:  Metals & Mining   |   Industry:  Steel & Iron Products

Snapshot

Q.1 Which industry/sub-sector does Oil Country Tubular Ltd belong to?
Oil Country Tubular Ltd belongs to the Metals & Mining sector, operating specifically within the Steel & Iron Products segment.
Q.2 Is Oil Country Tubular Ltd a good quality company?
Oil Country Tubular Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Oil Country Tubular Ltd undervalued or overvalued?
Oil Country Tubular Ltd appears Undervalued, as its key valuation ratios are lower than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 0-year
Historic Median
Price to Earnings - 7.77
Price to Book - 0.90
Price to Sales - 2.21
EV to EBITDA - 3.83
Q.4 Is Oil Country Tubular Ltd a good buy now?
Oil Country Tubular Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

C: How much debt does the business have and is it at a sustainable level?

Q.1 Debt to Equity ratio of Oil Country Tubular Ltd?
Oil Country Tubular Ltd Debt-to-Equity ratio is 0.00, which is in line with the industry average of , indicating similar to debt levels in the industry.

Q.2 Debt to cash flow from operations of Oil Country Tubular Ltd?
Oil Country Tubular Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Oil Country Tubular Ltd?

Q.1 Promoter shareholding and pledge status of Oil Country Tubular Ltd?
Promoters hold 47.23% of the Oil Country Tubular Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Oil Country Tubular Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Oil Country Tubular Ltd vs industry peers?
Oil Country Tubular Ltd revenue CAGR is %, compared to the industry median CAGR of 14.90%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 0-year
Industry Median
Revenue Growth (%) - 14.9
Gross Profit Growth (%) - 16.6
Operating Profit Growth (%) - 26
Net Profit Growth (%) - 23.9
Operating Efficiency
Current Level 0-year
Industry Median
Asset Turnover (x) - 0.34
ROE (%) - 14.32
ROCE (%) - 18.74
Cash Conversion Cycle (days) - 20

Valuation & price assessment

Q.1 Stock return of Oil Country Tubular Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 8.3% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
8.3% 57.3% 55.7% -3.9%
Q.2 Valuation ratios of Oil Country Tubular Ltd vs historical?
The current P/E ratio of 0 is lower than its historical median of 7.77, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 0-year historical median and industry numbers?
Valuation Ratios Current 0-year
Historic Median
0-year
Industry Median
Price to Earnings - 7.77 -
Price to Book - 0.90 -
Price to Sales - 2.21 -
EV to EBITDA - 3.83 -

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