Bombay Oxygen (509470)

Score breakdown: P/E: 2/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Trades at P/B of 0.74, a 26% discount to book value of ₹35,127 per share.
• Piotroski F-score of 7/9 indicates broadly sound financial health.
• Sharp reported growth in sales and profit (156.15% and 159.17%) suggests a possible inflection, albeit from a small base.
• Market cap of ₹391 Cr versus stated book value provides downside cushion if assets are truly worth book.

Concerns

• ROE of 3.01% and ROCE of 3.89% show poor returns on the large asset base.
• P/E of 18.26 is not attractive for such low profitability; absolute quarterly figures are tiny at sales ₹10 Cr and net profit ₹9 Cr.
• Dividend yield of 0.18% gives negligible compensation while waiting for value recognition.
• No promoter holding or debt/equity data means insufficient transparency for an NBFC investment.

AI Analysis

At ₹25,850, Bombay Oxygen trades at a meaningful discount to its book value of ₹35,127 per share. P/B of 0.74 is the kind of margin of safety Graham would circle. But cheap is not the same as attractive. The business earns only 3.01% ROE and 3.89% ROCE. That means the underlying assets are not being converted into shareholder value. The latest quarter shows sales of ₹10 Cr and net profit of ₹9 Cr. While the reported sales growth of 156.15% and profit growth of 159.17% are headline-grabbing, the absolute figures are small. A P/E of 18.26 is not obviously cheap when earnings are so dependent on a low base. The PEG of 0.12 is meaningless when growth is lumpy, not durable. The Piotroski F-score of 7/9 is a positive sign for balance-sheet health, but the dividend yield of 0.18% tells me this is not an income stock. I am bothered by the lack of promoter holding data and the N/A debt/equity figure. As an NBFC, asset quality and leverage are critical; without those, one is investing blind. What I see is an asset play: shareholders own a stated asset base of ₹35,127 per share, but the market pays only ₹25,850. The gap exists because the assets earn little. For a value investor, this can be a good risk-reward only if there is a catalyst—a buyback, a special dividend, an asset sale, or a fundamental improvement in ROE. I would not buy just because it is below book value. I would need evidence that management is willing and able to unlock value. Until then, Bombay Oxygen is a classic asset situation, but not a compounder.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer