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Check Before You Invest : Olectra Greentech Ltd

BSE: 532439 NSE: OLECTRA ISIN: INE260D01016
  |   Sector:  Automobiles   |   Industry:  Automobiles-Trucks/Lcv

Snapshot

Q.1 Which industry/sub-sector does Olectra Greentech Ltd belong to?
Olectra Greentech Ltd belongs to the Automobiles sector, operating specifically within the Automobiles-Trucks/Lcv segment.
Q.2 Is Olectra Greentech Ltd a good quality company?
Olectra Greentech 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 Olectra Greentech Ltd undervalued or overvalued?
Olectra Greentech Ltd appears Fair, as its key valuation ratios are in line with 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 69.49 126.62
Price to Book 8.5 9.50
Price to Sales 4.69 6.84
EV to EBITDA 33.43 45.50
Q.4 Is Olectra Greentech Ltd a good buy now?
Olectra Greentech 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 Olectra Greentech Ltd?
Olectra Greentech Ltd revenue growth is 56.1% for FY-2025, which is in line with its 5-year CAGR of 55.14%, indicating stable growth.

Q.2 Gross Profit margin of Olectra Greentech Ltd?
Olectra Greentech Ltd Gross profit margin which is the profit after deduction of direct costs, is 12.3% for FY-2025, which is above its 5-year median of 11.7%, indicating increasing margins.

Q.3 Operating Profit Margin of Olectra Greentech Ltd?
Olectra Greentech Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.59% for FY-2025, which is in line with its 5-year median of 14.14% indicating stable margins.

Q.4 Net Profit Margin of Olectra Greentech Ltd?
Olectra Greentech Ltd Net Profit Margin is 7.73% for FY-2025, is above its 5-year median of 6.13%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 12.3 11.7
Operating Profit Margin (%) 14.59 14.14
Net Profit Margin (%) 7.73 6.13

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Olectra Greentech Ltd?
Olectra Greentech Ltd Return on Asset is 7.4%, which is above its 5-year historical median of 4.87%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Olectra Greentech Ltd?
Olectra Greentech Ltd Return on capital employed is 20.45% for FY-2025, which is above its 5-year historical median of 13.3%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.7 Return on Equity (ROE) of Olectra Greentech Ltd?
Olectra Greentech Ltd Return on equity is 14.19% for FY-2025, which is above its 5-year historical median of 8.27%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Olectra Greentech Ltd?
Olectra Greentech Ltd Cash conversion cycle is 50 days, below its 5-year historical median of 87 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 (x) 0.96 0.73
ROE (%) 14.19 8.27
ROCE (%) 20.45 13.3
Cash Conversion Cycle 50 days 87 days

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

Q.9 Debt to Equity ratio of Olectra Greentech Ltd?
Olectra Greentech Ltd Debt-to-Equity ratio is 0.24, which is lower the industry average of 0.35, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Olectra Greentech Ltd?
Olectra Greentech Ltd Debt to cash flow from operations is 1.81, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Olectra Greentech Ltd?

Q.1 Promoter shareholding and pledge status of Olectra Greentech Ltd?
Promoters hold 50.02% of the Olectra Greentech Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Olectra Greentech Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Olectra Greentech Ltd vs industry peers?
Olectra Greentech Ltd revenue CAGR is 55.14%, compared to the industry median CAGR of 21.25%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 56.1 21.3
Gross Profit Growth (%) 65.7 51.5
Operating Profit Growth (%) 60.1 76.5
Net Profit Growth (%) 76 66.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.96 1.03
ROE (%) 14.19 7.83
ROCE (%) 20.45 12.69
Cash Conversion Cycle (days) 49.62 53

Valuation & price assessment

Q.1 Stock return of Olectra Greentech Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 52.3% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
52.3% 46.8% 21.8% -2.9%
Q.2 Valuation ratios of Olectra Greentech Ltd vs historical?
The current P/E ratio of 69.49 is lower than its historical median of 126.62, 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 69.49 126.62 28.09
Price to Book 8.5 9.50 6.71
Price to Sales 4.69 6.84 1.52
EV to EBITDA 33.43 45.50 16.60

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