Check Before You Invest : Olatech Solutions Ltd

Q: Which industry/sub-sector does Olatech Solutions Ltd belong to?

Olatech Solutions Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.

Q: Is Olatech Solutions Ltd a good quality company?

Olatech Solutions Ltd is a quality company, based on a 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: Is Olatech Solutions Ltd undervalued or overvalued?

Olatech Solutions Ltd appears Somewhat 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. Price to Earnings, Current: 16.16, Historic Median: 35.87. Price to Book, Current: 4.96, Historic Median: 7.53. Price to Sales, Current: 3.26, Historic Median: 6.46. EV to EBITDA, Current: 10.76, Historic Median: 24.07

Q: Is Olatech Solutions Ltd a good buy now?

Olatech Solutions Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Olatech Solutions Ltd?

Olatech Solutions Ltd revenue growth is 38.8% for FY-2025, which is above its 5-year CAGR of 20.36%, indicating faster growth.

Q: Gross Profit margin of Olatech Solutions Ltd?

Olatech Solutions Ltd Gross profit margin which is the profit after deduction of direct costs, is 27% for FY-2025, which is above its 5-year median of 23.2%, indicating increasing margins.

Q: Operating Profit Margin of Olatech Solutions Ltd?

Olatech Solutions Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 27.14% for FY-2025, which is above its 5-year median of 23.67% indicating increasing margins.

Q: Net Profit Margin of Olatech Solutions Ltd?

Olatech Solutions Ltd Net Profit Margin is 20.16% for FY-2025, is above its 5-year median of 15.92%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 27, Historic Median: 23.2. Operating Profit Margin (%), Current: 27.14, Historic Median: 23.67. Net Profit Margin (%), Current: 20.16, Historic Median: 15.92

Q: Return on Asset of Olatech Solutions Ltd?

Olatech Solutions Ltd Return on Asset is 26.42%, which is in line with its 5-year historical median of 26.42%, indicating stable asset utilization efficiency.

Q: Return on capital employed (ROCE) of Olatech Solutions Ltd?

Olatech Solutions Ltd Return on capital employed is 40.29% for FY-2025, which is in line with its 5-year historical median of 40.29%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Check Before You Invest : Olatech Solutions Ltd

BSE: 543578 NSE: ISIN: INE0M3901015

| Sector: IT & ITES | Industry: IT - Software

Snapshot

Q.1 Which industry/sub-sector does Olatech Solutions Ltd belong to?

Olatech Solutions Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.

Q.2 Is Olatech Solutions Ltd a good quality company?

Olatech Solutions Ltd is a quality company, based on a 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 Olatech Solutions Ltd undervalued or overvalued?

Olatech Solutions Ltd appears Somewhat 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	5-year Historic Median
Price to Earnings	16.16	35.87
Price to Book	4.96	7.53
Price to Sales	3.26	6.46
EV to EBITDA	10.76	24.07

Q.4 Is Olatech Solutions Ltd a good buy now?

Olatech Solutions Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. 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.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Olatech Solutions Ltd?

Olatech Solutions Ltd revenue growth is 38.8% for FY-2025, which is above its 5-year CAGR of 20.36%, indicating faster growth.

Q.2 Gross Profit margin of Olatech Solutions Ltd?

Olatech Solutions Ltd Gross profit margin which is the profit after deduction of direct costs, is 27% for FY-2025, which is above its 5-year median of 23.2%, indicating increasing margins.

Q.3 Operating Profit Margin of Olatech Solutions Ltd?

Olatech Solutions Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 27.14% for FY-2025, which is above its 5-year median of 23.67% indicating increasing margins.

Q.4 Net Profit Margin of Olatech Solutions Ltd?

Olatech Solutions Ltd Net Profit Margin is 20.16% for FY-2025, is above its 5-year median of 15.92%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	27	23.2
Operating Profit Margin (%)	27.14	23.67
Net Profit Margin (%)	20.16	15.92

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Olatech Solutions Ltd?

Olatech Solutions Ltd Return on Asset is 26.42%, which is in line with its 5-year historical median of 26.42%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Olatech Solutions Ltd?

Olatech Solutions Ltd Return on capital employed is 40.29% for FY-2025, which is in line with its 5-year historical median of 40.29%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Olatech Solutions Ltd?

Olatech Solutions Ltd Return on equity is 39.98% for FY-2025, which is in line with its 5-year historical median of 39.46%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Olatech Solutions Ltd?

Olatech Solutions Ltd Cash conversion cycle is 118 days, above its 5-year historical median of 37 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	1.31	1.93
ROE (%)	39.98	39.46
ROCE (%)	40.29	40.29
Cash Conversion Cycle	118 days	37 days

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

Q.9 Debt to Equity ratio of Olatech Solutions Ltd?

Olatech Solutions Ltd Debt-to-Equity ratio is 0.17, which is above the industry average of 0.01, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Olatech Solutions Ltd?

Olatech Solutions Ltd Debt to cash flow from operations is 0.61, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Olatech Solutions Ltd?

Q.1 Promoter shareholding and pledge status of Olatech Solutions Ltd?

Promoters hold 62.72% of the Olatech Solutions Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Olatech Solutions Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Olatech Solutions Ltd vs industry peers?

Olatech Solutions Ltd revenue CAGR is 20.36%, compared to the industry median CAGR of 3.17%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	38.8	3.2
Gross Profit Growth (%)	32.7	18.4
Operating Profit Growth (%)	31	18.8
Net Profit Growth (%)	40.4	21.9

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	1.31	0.46
ROE (%)	39.98	4.22
ROCE (%)	40.29	6.49
Cash Conversion Cycle (days)	117.97	36

Valuation & price assessment

Q.1 Stock return of Olatech Solutions Ltd over the last decade?

Over the last 3 year(s), the stock has delivered a CAGR of 46.29% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	46.3%	-49.4%

Q.2 Valuation ratios of Olatech Solutions Ltd vs historical?

The current P/E ratio of 16.16 is lower than its historical median of 35.87, indicating that the stock is trading below its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	16.16	35.87	47.38
Price to Book	4.96	7.53	2.64
Price to Sales	3.26	6.46	4.79
EV to EBITDA	10.76	24.07	16.75

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Check Before You Invest : Olatech Solutions Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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