Check Before You Invest : Omkar Speciality Chemicals Ltd

Snapshot

Q.1 Which industry/sub-sector does Omkar Speciality Chemicals Ltd belong to?

Omkar Speciality Chemicals Ltd belongs to the Chemicals & Fertilizers sector, operating specifically within the Chemicals segment.

Q.2 Is Omkar Speciality Chemicals Ltd a good quality company?

Omkar Speciality Chemicals Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Omkar Speciality Chemicals Ltd undervalued or overvalued?

Omkar Speciality Chemicals Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Omkar Speciality Chemicals Ltd a good buy now?

Omkar Speciality Chemicals 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

Q.1 Revenue growth of Omkar Speciality Chemicals Ltd?

Omkar Speciality Chemicals Ltd revenue growth is -20.7% for FY-2021, which is above its 5-year CAGR of -31.54%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Omkar Speciality Chemicals Ltd?

Omkar Speciality Chemicals Ltd Return on capital employed is 12.4% for FY-2021, which is above its 5-year historical median of -8.38%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Omkar Speciality Chemicals Ltd?

Omkar Speciality Chemicals Ltd Return on Asset is 2.36%, which is above its 5-year historical median of -15.68%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Omkar Speciality Chemicals Ltd?

Omkar Speciality Chemicals Ltd Return on equity is 0% for FY-2021, which is below its 5-year historical median of 12.06%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Omkar Speciality Chemicals Ltd?

Omkar Speciality Chemicals Ltd Cash conversion cycle is -35 days, below its 5-year historical median of -31 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.53	0.61
ROE	-	12.06
ROCE	12.4	-8.38
Cash Conversion Cycle	-35 days	-31 days

Q.6 Gross Profit margin of Omkar Speciality Chemicals Ltd?

Omkar Speciality Chemicals Ltd Gross profit margin which is the profit after deduction of direct costs, is 5.9% for FY-2021, which is above its 5-year median of -8.3%, indicating increasing margins.

Q.7 Operating Profit Margin of Omkar Speciality Chemicals Ltd?

Omkar Speciality Chemicals Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 16.42% for FY-2021, which is above its 5-year median of 0.2% indicating increasing margins.

Q.8 Net Profit Margin of Omkar Speciality Chemicals Ltd?

Omkar Speciality Chemicals Ltd Net Profit Margin is 4.46% for FY-2021, is above with its 5-year median of -34.53%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	5.9	-8.3
Operating Profit Margin	16.42	0.2
Net Profit Margin	4.46	-34.53

Q.9 Debt to Equity ratio of Omkar Speciality Chemicals Ltd?

Omkar Speciality Chemicals Ltd Debt-to-Equity ratio is -1.44, which is lower with the industry average of 0.26, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Omkar Speciality Chemicals Ltd?

Omkar Speciality Chemicals Ltd Debt to cash flow from operations is -13.9, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Omkar Speciality Chemicals Ltd?

Promoters hold 14.71% of the Omkar Speciality Chemicals Ltd, with 56.73% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Omkar Speciality Chemicals Ltd vs industry peers?

Omkar Speciality Chemicals Ltd revenue CAGR is -31.54%, compared to the industry median CAGR of 9.62%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-20.7	9.6
Gross Profit Growth	0	14.3
Operating Profit Growth	0	12
Net Profit Growth	0	12.7

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.53	0.97
ROE	-	10.68
ROCE	12.4	13.26
Cash Conversion Cycle (days)	-34.66	63

Valuation & price assessment

Q.1 Stock return of Omkar Speciality Chemicals Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of -32.4% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-32.4%	-20.8%	-22.9%	-38.8%

Q.3 Valuation ratios of Omkar Speciality Chemicals Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 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	-	27.93	27.93
Price to Book	-	-0.20	2.22
Price to Sales	0.02	0.90	1.93
EV to EBITDA	-43.46	-46.69	14.18

Check more companies

1. Navin Fluorine Intl

2. Godrej Industries

3. Deepak Nitrite

4. Tata Chemicals

5. Atul

6. Aarti Inds

7. Deepak Fert & Petro

8. BASF India

9. Aether Industries

10. Anupam Rasayan India

Check trending companies

1. Force Motors Ltd.

2. KEI Industries Ltd.

3. Aadhar Housing Finance Ltd.

4. State Bank Of India

5. Power Finance Corporation Ltd.