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Check Before You Invest : Omnitex Industries (India) Ltd

BSE: 514324 NSE: ISIN: INE814D01010
  |   Sector:  Miscellaneous   |   Industry:  Trading

Snapshot

Q.1 Which industry/sub-sector does Omnitex Industries (India) Ltd belong to?
Omnitex Industries (India) Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.
Q.2 Is Omnitex Industries (India) Ltd a good quality company?
Omnitex Industries (India) 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 Omnitex Industries (India) Ltd undervalued or overvalued?
Omnitex Industries (India) 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 8100.58 15.59
Price to Book 1.88 1.62
Price to Sales 589.92 40.60
EV to EBITDA 85.85 -88.41
Q.4 Is Omnitex Industries (India) Ltd a good buy now?
Omnitex Industries (India) 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

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 Omnitex Industries (India) Ltd?
Omnitex Industries (India) Ltd revenue growth is 87.7% for FY-2025, which is above its 5-year CAGR of 51.48%, indicating faster growth.

Q.2 Gross Profit margin of Omnitex Industries (India) Ltd?
Omnitex Industries (India) Ltd Gross profit margin which is the profit after deduction of direct costs, is 65.2% for FY-2025, which is above its 5-year median of -4.6%, indicating increasing margins.

Q.3 Operating Profit Margin of Omnitex Industries (India) Ltd?
Omnitex Industries (India) Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -4.52% for FY-2025, which is above its 5-year median of -6.64% indicating increasing margins.

Q.4 Net Profit Margin of Omnitex Industries (India) Ltd?
Omnitex Industries (India) Ltd Net Profit Margin is 39.15% for FY-2025, is above its 5-year median of -7.83%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 65.2 -4.6
Operating Profit Margin (%) -4.52 -6.64
Net Profit Margin (%) 39.15 -7.83

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Omnitex Industries (India) Ltd?
Omnitex Industries (India) Ltd Return on Asset is 0.68%, which is above its 5-year historical median of -2.77%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Omnitex Industries (India) Ltd?
Omnitex Industries (India) Ltd Return on capital employed is 1.38% for FY-2025, which is above its 5-year historical median of -2.61%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Omnitex Industries (India) Ltd?
Omnitex Industries (India) Ltd Return on equity is 0.82% for FY-2025, which is above its 5-year historical median of -2.84%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Omnitex Industries (India) Ltd?
Omnitex Industries (India) Ltd Cash conversion cycle is 15 days, in line with its 5-year historical median of 15 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.02 0.06
ROE (%) 0.82 -2.84
ROCE (%) 1.38 -2.61
Cash Conversion Cycle 15 days 15 days

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

Q.9 Debt to Equity ratio of Omnitex Industries (India) Ltd?
Omnitex Industries (India) Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.03, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Omnitex Industries (India) Ltd?
Omnitex Industries (India) Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Omnitex Industries (India) Ltd?

Q.1 Promoter shareholding and pledge status of Omnitex Industries (India) Ltd?
Promoters hold 38.03% of the Omnitex Industries (India) Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Omnitex Industries (India) Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Omnitex Industries (India) Ltd vs industry peers?
Omnitex Industries (India) Ltd revenue CAGR is 51.48%, compared to the industry median CAGR of 0%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 87.7 -
Gross Profit Growth (%) - 17.9
Operating Profit Growth (%) 0 16.4
Net Profit Growth (%) -75 17.3
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.02 0.52
ROE (%) 0.82 2.05
ROCE (%) 1.38 3.6
Cash Conversion Cycle (days) 15.03 46

Valuation & price assessment

Q.1 Stock return of Omnitex Industries (India) Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 48.6% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
48.6% 103.2% 155.3% 174.1%
Q.2 Valuation ratios of Omnitex Industries (India) Ltd vs historical?
The current P/E ratio of 8100.58 is higher than its historical median of 15.59, 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 8100.58 15.59 33.62
Price to Book 1.88 1.62 1.57
Price to Sales 589.92 40.60 2.21
EV to EBITDA 85.85 -88.41 14.09

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