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Check Before You Invest : Oswal Pumps Ltd

BSE: 544418 NSE: OSWALPUMPS ISIN: INE0BYP01024
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Compressors / Pumps

Snapshot

Q.1 Which industry/sub-sector does Oswal Pumps Ltd belong to?
Oswal Pumps Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Compressors / Pumps segment.
Q.2 Is Oswal Pumps Ltd a good quality company?
Oswal Pumps 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 Oswal Pumps Ltd undervalued or overvalued?
Oswal Pumps 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 3-year
Historic Median
Price to Earnings 14.66 26.04
Price to Book 2.7 4.16
Price to Sales 2.3 4.73
EV to EBITDA 10.04 16.58
Q.4 Is Oswal Pumps Ltd a good buy now?
Oswal Pumps Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. 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.

Q.1 Gross Profit margin of Oswal Pumps Ltd?
Oswal Pumps Ltd Gross profit margin which is the profit after deduction of direct costs, is 25% for FY-2025, which is above its 3-year median of 16.3%, indicating increasing margins.

Q.2 Operating Profit Margin of Oswal Pumps Ltd?
Oswal Pumps Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 27.79% for FY-2025, which is above its 3-year median of 18.12% indicating increasing margins.

Q.3 Net Profit Margin of Oswal Pumps Ltd?
Oswal Pumps Ltd Net Profit Margin is 18.16% for FY-2025, is above its 3-year median of 11.5%, indicating increasing margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 25 16.3
Operating Profit Margin (%) 27.79 18.12
Net Profit Margin (%) 18.16 11.5

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Oswal Pumps Ltd?
Oswal Pumps Ltd Return on Asset is 32.99%, which is above its 3-year historical median of 24.28%, indicating improved asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Oswal Pumps Ltd?
Oswal Pumps Ltd Return on capital employed is 76.87% for FY-2025, which is above its 3-year historical median of 72.04%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.6 Return on Equity (ROE) of Oswal Pumps Ltd?
Oswal Pumps Ltd Return on equity is 80.52% for FY-2025, which is above its 3-year historical median of 71.28%, indicating the business is making better use of its shareholders capital.

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

Q.7 Debt to Equity ratio of Oswal Pumps Ltd?
Oswal Pumps Ltd Debt-to-Equity ratio is 0.66, which is above the industry average of 0.07, indicating higher debt levels in the industry.

Q.8 Debt to cash flow from operations of Oswal Pumps Ltd?
Oswal Pumps Ltd Debt to cash flow from operations is -1.95, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Oswal Pumps Ltd?

Q.1 Promoter shareholding and pledge status of Oswal Pumps Ltd?
Promoters hold 75.67% of the Oswal Pumps Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Oswal Pumps Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Oswal Pumps Ltd vs industry peers?
Oswal Pumps Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 13.81%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) - 13.8
Gross Profit Growth (%) 152.4 15.1
Operating Profit Growth (%) 155.8 21.3
Net Profit Growth (%) 159.6 26
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 1.82 1.03
ROE (%) 80.52 17.16
ROCE (%) 76.87 23.11
Cash Conversion Cycle (days) 130.73 98

Valuation & price assessment

Q.1 Stock return of Oswal Pumps Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -
Q.2 Valuation ratios of Oswal Pumps Ltd vs historical?
The current P/E ratio of 14.66 is lower than its historical median of 26.04, indicating that the stock is trading below its historical average valuation.
Q.3 How do the current valuation ratios compare with 3-year historical median and industry numbers?
Valuation Ratios Current 3-year
Historic Median
3-year
Industry Median
Price to Earnings 14.66 26.04 45.44
Price to Book 2.7 4.16 6.50
Price to Sales 2.3 4.73 3.83
EV to EBITDA 10.04 16.58 24.92

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