Omaxe (OMAXE)

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.

Let me start with the obvious: this is not a business I would put in the 'wonderful company' pile. Omaxe’s latest quarter reports ₹302 crore in sales and a net loss of ₹153 crore. That is roughly a 50 percent loss on every rupee of revenue—an alarming number. A 4.46 percent sales growth cannot compensate when the earnings engine is broken. The P/E is meaningless at zero because there are no positive earnings to value. Graham taught us to treat losses seriously; the Piotroski F-score of 3/9 reinforces that the company is in poor financial health. The balance sheet shows a positive book value of ₹40.49 per share, but at ₹86.57 I am being asked to pay 2.14 times that book value. There is no margin of safety there. Instead of a discount, I am paying a premium for a business earning -18.58 percent on equity and -61.38 percent on capital employed. That is value destruction, not compounding. No dividend means the small shareholder is not being paid to wait. On the positive side, promoter holding is 74.14 percent, so the people running the company have skin in the game. If they can sell assets, complete projects and improve collections, there may be a turnaround. But I need evidence, not hope. Until losses shrink and returns turn positive, this remains a speculative turnaround rather than a value investment.

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