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Check Before You Invest : OBSC Perfection Ltd

BSE: 0 NSE: OBSCP ISIN: INE0YHV01011
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Engineering - Industrial Equipments

Snapshot

Q.1 Which industry/sub-sector does OBSC Perfection Ltd belong to?
OBSC Perfection Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering - Industrial Equipments segment.
Q.2 Is OBSC Perfection Ltd a good quality company?
OBSC Perfection 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 OBSC Perfection Ltd undervalued or overvalued?
OBSC Perfection Ltd appears Somewhat overvalued, as its key valuation ratios are higher 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 41.59 43.64
Price to Book 6.53 7.27
Price to Sales 5.12 5.09
EV to EBITDA 26.93 27.15
Q.4 Is OBSC Perfection Ltd a good buy now?
OBSC Perfection Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. 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 OBSC Perfection Ltd?
OBSC Perfection Ltd revenue growth is 24.1% for FY-2025, which is below its 3-year CAGR of 36.19%, indicating slower growth.

Q.2 Gross Profit margin of OBSC Perfection Ltd?
OBSC Perfection Ltd Gross profit margin which is the profit after deduction of direct costs, is 14.3% for FY-2025, which is above its 3-year median of 13.6%, indicating increasing margins.

Q.3 Operating Profit Margin of OBSC Perfection Ltd?
OBSC Perfection Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 17.78% for FY-2025, which is in line with its 3-year median of 17.78% indicating stable margins.

Q.4 Net Profit Margin of OBSC Perfection Ltd?
OBSC Perfection Ltd Net Profit Margin is 11.74% for FY-2025, is above its 3-year median of 10.62%, indicating increasing margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 14.3 13.6
Operating Profit Margin (%) 17.78 17.78
Net Profit Margin (%) 11.74 10.62

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of OBSC Perfection Ltd?
OBSC Perfection Ltd Return on Asset is 13.66%, which is in line with its 3-year historical median of 13.66%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of OBSC Perfection Ltd?
OBSC Perfection Ltd Return on capital employed is 23.46% for FY-2025, which is in line with its 3-year historical median of 23.46%. 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 OBSC Perfection Ltd?
OBSC Perfection Ltd Return on equity is 25% for FY-2025, which is below its 3-year historical median of 29.37%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of OBSC Perfection Ltd?
OBSC Perfection Ltd Cash conversion cycle is 46 days, above its 3-year historical median of 35 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level 3-year
Historic Median
Asset Turnover (x) 1.41 1.81
ROE (%) 25 29.37
ROCE (%) 23.46 23.46
Cash Conversion Cycle 46 days 35 days

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

Q.9 Debt to Equity ratio of OBSC Perfection Ltd?
OBSC Perfection Ltd Debt-to-Equity ratio is 0.26, which is above the industry average of 0.18, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of OBSC Perfection Ltd?
OBSC Perfection Ltd Debt to cash flow from operations is 3.05, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of OBSC Perfection Ltd?

Q.1 Promoter shareholding and pledge status of OBSC Perfection Ltd?
Promoters hold 69.81% of the OBSC Perfection Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does OBSC Perfection Ltd performance compare with that of its Peers?

Q.1 Revenue growth of OBSC Perfection Ltd vs industry peers?
OBSC Perfection Ltd revenue CAGR is 36.19%, compared to the industry median CAGR of 12.49%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) 24.1 12.5
Gross Profit Growth (%) 31.6 26
Operating Profit Growth (%) 19.1 26
Net Profit Growth (%) 41.7 26.6
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 1.41 0.92
ROE (%) 25 16.45
ROCE (%) 23.46 19.55
Cash Conversion Cycle (days) 46.34 97

Valuation & price assessment

Q.1 Stock return of OBSC Perfection Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of 130.82% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - 130.8%
Q.2 Valuation ratios of OBSC Perfection Ltd vs historical?
The current P/E ratio of 41.59 is in line with than its historical median of 43.64, indicating that the stock is trading near 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 41.59 43.64 32.30
Price to Book 6.53 7.27 3.57
Price to Sales 5.12 5.09 3.21
EV to EBITDA 26.93 27.15 16.34

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