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Check Before You Invest : Otco International Ltd

BSE: 523151 NSE: ISIN: INE910B01028
  |   Sector:  IT & ITES   |   Industry:  IT - Software

Snapshot

Q.1 Which industry/sub-sector does Otco International Ltd belong to?
Otco International Ltd belongs to the IT & ITES sector, operating specifically within the IT - Software segment.
Q.2 Is Otco International Ltd a good quality company?
Otco International Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is Otco International Ltd undervalued or overvalued?
Otco International Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Otco International Ltd a good buy now?
Otco International 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 Otco International Ltd?
Otco International Ltd revenue growth is -55.2% for FY-2025 , which is below its 5 year CAGR of 18.2% , indicating slower growth.
Q.2 Gross Profit margin of Otco International Ltd?
Otco International Ltd Gross profit margin which is the profit after deduction of direct costs, is 9.3% for FY-2025 , which is in line with its 5 year median of 9.3% , indicating stable margins.
Q.3 Operating Profit Margin of Otco International Ltd?
Otco International Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 8.32% for FY-2025 , which is above its 5 year median of 6.76% indicating increasing margins.
Q.4 Net Profit Margin of Otco International Ltd?
Otco International Ltd Net Profit Margin is 3.27% for FY-2025 , is below with its 5 year median of 6.6%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 9.3 9.3
Operating Profit Margin 8.32 6.76
Net Profit Margin 3.27 6.6
Q.5 Return on Asset of Otco International Ltd?
Otco International Ltd Return on Asset is 0.32(x), which is below its 5 year historical median of 1.27(x), indicating deteriorated asset utilization efficiency.
Q.6 Return on Equity (ROE) of Otco International Ltd?
Otco International Ltd Return on equity is 1.11% for FY-2025 , which is below its historical median of 3.31%, indicating the business is making worse use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Otco International Ltd?
Otco International Ltd Return on capital employed is 0.4% for FY-2025 , which is below its estimated weighted average cost of capital(WACC) 14%, indicating value preservation.
Q.8 Cash conversion cycle of Otco International Ltd?
Otco International Ltd Cash conversion cycle is 3026 , above its historical median of 1236 , indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.1 0.24
ROE 1.11 3.31
ROCE 0.4 1.86
Cash Conversion Cycle 3026 1236
Q.9 Debt to Equity ratio of Otco International Ltd?
Otco International Ltd Debt-to-Equity ratio is 2.21 , which is above with the industry average of 0.01 , indicating higher debt levels in the industry.
Q.10 Debt to cash flow from operations of Otco International Ltd?
Otco International Ltd Debt to cash flow from operations is 8.63 , which is at a unhealthy level, indicating the business is not able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Otco International Ltd?
Promoters hold 74.22% of the Otco International Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Otco International Ltd vs industry peers?
Otco International Ltd revenue CAGR is 18.20% , compared to the industry median CAGR of 2.48% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 0.9 23.6
Gross Profit 0.1 1.9
Operating Profit 0.1 1.2
Net Profit 0 0.8
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.1 0.45
ROE 1.11 4.09
ROCE 0.4 6.4
Cash Conversion Cycle 3025.83 36

Valuation & price assessment

Q.1 Stock return of Otco International Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 10.5% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price 10.5% 28.8% 18.9% 2%
Q.3 Valuation ratios of Otco International Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 342.01 45.09 22.96
Price to Book 4.13 3.14 2.61
Price to Sales 11.19 4.32 4.40
EV to EBITDA 193.95 37.04 17.20

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