MoneyWorks4Me

Check Before You Invest : Osiajee Texfab Ltd

BSE: 540198 NSE: ISIN: INE186R01013
  |   Sector:  Textiles & Apparels   |   Industry:  Textile

Snapshot

Q.1 Which industry/sub-sector does Osiajee Texfab Ltd belong to?
Osiajee Texfab Ltd belongs to the Textiles & Apparels sector, operating specifically within the Textile segment.
Q.2 Is Osiajee Texfab Ltd a good quality company?
Osiajee Texfab 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 Osiajee Texfab Ltd undervalued or overvalued?
Osiajee Texfab 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 23.89 -
Price to Book 6.29 3.87
Price to Sales 20.47 16.40
EV to EBITDA 23.68 -162.03
Q.4 Is Osiajee Texfab Ltd a good buy now?
Osiajee Texfab 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.

Q.1 Gross Profit margin of Osiajee Texfab Ltd?
Osiajee Texfab Ltd Gross profit margin which is the profit after deduction of direct costs, is 71.1% for FY-2025, which is above its 5-year median of 46.8%, indicating increasing margins.

Q.2 Operating Profit Margin of Osiajee Texfab Ltd?
Osiajee Texfab Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 74.77% for FY-2025, which is above its 5-year median of 49.56% indicating increasing margins.

Q.3 Net Profit Margin of Osiajee Texfab Ltd?
Osiajee Texfab Ltd Net Profit Margin is 70.57% for FY-2025, is above its 5-year median of 45.72%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 71.1 46.8
Operating Profit Margin (%) 74.77 49.56
Net Profit Margin (%) 70.57 45.72

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Osiajee Texfab Ltd?
Osiajee Texfab Ltd Return on Asset is 28.98%, which is above its 5-year historical median of 7.73%, indicating improved asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Osiajee Texfab Ltd?
Osiajee Texfab Ltd Return on capital employed is 32.12% for FY-2025, which is above its 5-year historical median of 10.77%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.6 Return on Equity (ROE) of Osiajee Texfab Ltd?
Osiajee Texfab Ltd Return on equity is 40.15% for FY-2025, which is above its 5-year historical median of 12.42%, indicating the business is making better use of its shareholders capital.

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

Q.7 Debt to Equity ratio of Osiajee Texfab Ltd?
Osiajee Texfab Ltd Debt-to-Equity ratio is 0.13, which is lower the industry average of 0.42, indicating lower debt levels in the industry.

Q.8 Debt to cash flow from operations of Osiajee Texfab Ltd?
Osiajee Texfab Ltd Debt to cash flow from operations is 0.34, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Osiajee Texfab Ltd?

Q.1 Promoter shareholding and pledge status of Osiajee Texfab Ltd?
Promoters hold 2.78% of the Osiajee Texfab Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Osiajee Texfab Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Osiajee Texfab Ltd vs industry peers?
Osiajee Texfab Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 0%, indicating stable growth and maintaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) - -
Gross Profit Growth (%) 400 9.5
Operating Profit Growth (%) 400 7.5
Net Profit Growth (%) 400 11.1
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.41 0.95
ROE (%) 40.15 4.69
ROCE (%) 32.12 8.31
Cash Conversion Cycle (days) 126.18 102

Valuation & price assessment

Q.1 Stock return of Osiajee Texfab Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 42.65% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- 42.7% 82.5% -9.4%
Q.2 Valuation ratios of Osiajee Texfab Ltd vs historical?
The current P/E ratio of 23.89 is higher than its historical median of , 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 23.89 - 20.16
Price to Book 6.29 3.87 1.32
Price to Sales 20.47 16.40 1.06
EV to EBITDA 23.68 -162.03 9.31

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