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Check Before You Invest : Olympia Industries Ltd

BSE: 521105 NSE: ISIN: INE482O01021
  |   Sector:  Retail   |   Industry:  Retailing

Snapshot

Q.1 Which industry/sub-sector does Olympia Industries Ltd belong to?
Olympia Industries Ltd belongs to the Retail sector, operating specifically within the Retailing segment.
Q.2 Is Olympia Industries Ltd a good quality company?
Olympia Industries 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 Olympia Industries Ltd undervalued or overvalued?
Olympia Industries 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 10.43 34.99
Price to Book 0.42 0.69
Price to Sales 0.06 0.12
EV to EBITDA 7.45 10.95
Q.4 Is Olympia Industries Ltd a good buy now?
Olympia Industries 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 Olympia Industries Ltd?
Olympia Industries Ltd revenue growth is 49.4% for FY-2025, which is above its 5-year CAGR of 16.27%, indicating faster growth.

Q.2 Gross Profit margin of Olympia Industries Ltd?
Olympia Industries Ltd Gross profit margin which is the profit after deduction of direct costs, is 0.9% for FY-2025, which is in line with its 5-year median of 0.9%, indicating stable margins.

Q.3 Operating Profit Margin of Olympia Industries Ltd?
Olympia Industries Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 2.6% for FY-2025, which is above its 5-year median of 1.77% indicating increasing margins.

Q.4 Net Profit Margin of Olympia Industries Ltd?
Olympia Industries Ltd Net Profit Margin is 0.46% for FY-2025, is above its 5-year median of 0.26%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 0.9 0.9
Operating Profit Margin (%) 2.6 1.77
Net Profit Margin (%) 0.46 0.26

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Olympia Industries Ltd?
Olympia Industries Ltd Return on Asset is 0.92%, which is above its 5-year historical median of 0.59%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Olympia Industries Ltd?
Olympia Industries Ltd Return on capital employed is 7.43% for FY-2025, which is above its 5-year historical median of 6.18%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Olympia Industries Ltd?
Olympia Industries Ltd Return on equity is 3.06% for FY-2025, which is above its 5-year historical median of 1.93%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Olympia Industries Ltd?
Olympia Industries Ltd Cash conversion cycle is 112 days, in line with its 5-year historical median of 112 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 2.01 2.01
ROE (%) 3.06 1.93
ROCE (%) 7.43 6.18
Cash Conversion Cycle 112 days 112 days

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

Q.9 Debt to Equity ratio of Olympia Industries Ltd?
Olympia Industries Ltd Debt-to-Equity ratio is 1.31, which is above the industry average of 0.25, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Olympia Industries Ltd?
Olympia Industries Ltd Debt to cash flow from operations is -84.3, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Olympia Industries Ltd?

Q.1 Promoter shareholding and pledge status of Olympia Industries Ltd?
Promoters hold 71.86% of the Olympia Industries Ltd, with 7.72% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Olympia Industries Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Olympia Industries Ltd vs industry peers?
Olympia Industries Ltd revenue CAGR is 16.27%, compared to the industry median CAGR of 0.00%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 49.4 0
Gross Profit Growth (%) 6.1 19.8
Operating Profit Growth (%) 14 16.2
Net Profit Growth (%) 64.6 18.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 2.01 1.11
ROE (%) 3.06 3.58
ROCE (%) 7.43 11.9
Cash Conversion Cycle (days) 111.82 38

Valuation & price assessment

Q.1 Stock return of Olympia Industries Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of -11.3% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
-11.3% -4.2% -32.4% -24.3%
Q.2 Valuation ratios of Olympia Industries Ltd vs historical?
The current P/E ratio of 10.43 is lower than its historical median of 34.99, 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 10.43 34.99 37.15
Price to Book 0.42 0.69 2.76
Price to Sales 0.06 0.12 1.31
EV to EBITDA 7.45 10.95 14.00

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