Omkar Pharmachem (532167)

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

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.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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