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Check Before You Invest : Omax Autos Ltd

BSE: 520021 NSE: OMAXAUTO ISIN: INE090B01011
  |   Sector:  Automobiles   |   Industry:  Auto Ancillary

Snapshot

Q.1 Which industry/sub-sector does Omax Autos Ltd belong to?
Omax Autos Ltd belongs to the Automobiles sector, operating specifically within the Auto Ancillary segment.
Q.2 Is Omax Autos Ltd a good quality company?
Omax Autos Ltd is a average quality company, based on a somewhat consistent 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 Omax Autos Ltd undervalued or overvalued?
Omax Autos Ltd appears 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 5-year
Historic Median
Price to Earnings 13.71 7.52
Price to Book 1.46 0.50
Price to Sales 1.05 0.54
EV to EBITDA 5.68 6.03
Q.4 Is Omax Autos Ltd a good buy now?
Omax Autos 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 Omax Autos Ltd?
Omax Autos Ltd revenue growth is 3.9% for FY-2025, which is above its 5-year CAGR of -4.57%, indicating faster growth.

Q.2 Gross Profit margin of Omax Autos Ltd?
Omax Autos Ltd Gross profit margin which is the profit after deduction of direct costs, is 9.9% for FY-2025, which is above its 5-year median of 1.6%, indicating increasing margins.

Q.3 Operating Profit Margin of Omax Autos Ltd?
Omax Autos Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 8.73% for FY-2025, which is above its 5-year median of 5.18% indicating increasing margins.

Q.4 Net Profit Margin of Omax Autos Ltd?
Omax Autos Ltd Net Profit Margin is 5.84% for FY-2025, is above its 5-year median of 3.28%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 9.9 1.6
Operating Profit Margin (%) 8.73 5.18
Net Profit Margin (%) 5.84 3.28

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Omax Autos Ltd?
Omax Autos Ltd Return on Asset is 4.38%, which is above its 5-year historical median of 2.33%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Omax Autos Ltd?
Omax Autos Ltd Return on capital employed is 14.01% for FY-2025, which is above its 5-year historical median of 10.74%. 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 Omax Autos Ltd?
Omax Autos Ltd Return on equity is 7.03% for FY-2025, which is above its 5-year historical median of 4%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Omax Autos Ltd?
Omax Autos Ltd Cash conversion cycle is -22 days, below its 5-year historical median of -20 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) 0.75 0.57
ROE (%) 7.03 4
ROCE (%) 14.01 10.74
Cash Conversion Cycle -22 days -20 days

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

Q.9 Debt to Equity ratio of Omax Autos Ltd?
Omax Autos Ltd Debt-to-Equity ratio is 0.22, which is lower the industry average of 0.40, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Omax Autos Ltd?
Omax Autos Ltd Debt to cash flow from operations is 2.06, which is at a moderate level.

Ownership & governance

D: Promoter shareholding and pledge status of Omax Autos Ltd?

Q.1 Promoter shareholding and pledge status of Omax Autos Ltd?
Promoters hold 54.86% of the Omax Autos Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Omax Autos Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Omax Autos Ltd vs industry peers?
Omax Autos Ltd revenue CAGR is -4.57%, compared to the industry median CAGR of 11.89%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 3.9 11.9
Gross Profit Growth (%) 63.6 16.2
Operating Profit Growth (%) 28 14.7
Net Profit Growth (%) 83.3 20.1
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.75 1.24
ROE (%) 7.03 11.65
ROCE (%) 14.01 13.5
Cash Conversion Cycle (days) -22.22 46

Valuation & price assessment

Q.1 Stock return of Omax Autos Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 14% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
14% 42.3% 60.7% 186.9%
Q.2 Valuation ratios of Omax Autos Ltd vs historical?
The current P/E ratio of 13.71 is higher than its historical median of 7.52, indicating that the stock is trading above 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 13.71 7.52 28.71
Price to Book 1.46 0.50 2.99
Price to Sales 1.05 0.54 1.35
EV to EBITDA 5.68 6.03 11.85

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