Omkar Pharmachem (532167)

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

Key Financials

Strengths

• Tiny ₹29 Cr market cap means even a modest sales recovery can move earnings sharply from the current depressed base.
• Book value of ₹9.28 per share provides a tangible asset reference, though the current price is 2.99 times that book value.
• The 52-week range of ₹25.50-₹29.74 is narrow, suggesting limited speculative excess has built into the price.
• Commodity chemicals serve basic industrial needs; a cyclical demand upturn could lift capacity utilisation and margins.

Concerns

• Sales growth of -21.43% and profit growth of -62.50% reflect severe business contraction.
• Latest quarter shows ₹0 crore sales and ₹0 crore net profit, leaving no current earnings to value.
• ROE of 0.92% and ROCE of 3.04% are well below required returns, especially while paying P/B of 2.99.
• Piotroski F-score of 3/9, no dividend, and missing debt/promoter data create a poor transparency and fundamental picture.

AI Analysis

At ₹27.78, with a market cap of just ₹29 crore, Omkar Pharmachem looks like a small commodity-chemical operation in deep trouble. My first test is simple: can this business generate a decent return on capital? The answer, from the figures, is no. Return on equity is 0.92% and return on capital employed is only 3.04%. That is below what a mediocre fixed deposit pays, and I am asked to pay ₹27.78 for each share while the book value is only ₹9.28. In other words, I am paying 2.99 times tangible assets for a business earning less than one percent on its equity. Last quarter, sales were reported at ₹0 crore and net profit at ₹0 crore. There is no earning power at all right now. Sales have fallen 21.43% and profits have collapsed 62.50%. The reported P/E of 330.56 is meaningless, except as a warning that earnings have almost disappeared. The company pays no dividend, so there is no return while I wait. The Piotroski score of 3 out of 9 reinforces the picture of deteriorating fundamentals. Graham would remind me that the stock market is a voting machine in the short run and a weighing machine in the long run. Right now, the scales show a commodity chemical business with no pricing power, no profit, and no evidence of a turnaround. It may be a cyclical business, but I only invest in cyclicals when the balance sheet is strong and the price offers a margin of safety. Here, with debt/equity and promoter holding not disclosed, and the FairStock score insufficient, there is no margin of safety I can measure. I will wait on the sidelines until sales return and management proves profits can be earned.

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