Om Infra (OMINFRAL)

FairStock Score: 29/100 — RISKY

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

Key Financials

AI Analysis

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

At ₹93.14, Om Infra carries a market cap of ₹822 Cr and a book value of ₹78.54. A P/B of 1.19 looks reasonable at first glance, but I've learned that a low price-to-book is only attractive when the business earns a decent return on that book. Here, ROE is just 4.84% and ROCE is 4.41% — far below what I would expect from a quality enterprise. The debt-to-equity of 0.14 is comforting, and promoter holding of 67.05% tells me insiders have skin in the game. But the underlying business is contracting: sales growth is minus 15.80%. Profit growth of 74.14% sounds impressive, but on a shrinking revenue base, that is more likely a low-base effect or margin recovery than durable compounding. The latest quarter shows ₹112 Cr sales and ₹8 Cr net profit, a small positive signal, but one quarter doesn't change a cyclical picture. At 29.17 times earnings, the market is paying a hefty multiple for a civil construction player with negative sales momentum and thin returns. The PEG of 0.39 only looks interesting if you believe the recent profit jump is permanent; I am not convinced. Construction in India is highly competitive, fragmented, and subject to execution and payment-cycle risks. There is no wide moat here. It may offer a cyclical or asset-backed trade for a patient bargain hunter, but as a long-term investor, I need a greater margin of safety and evidence of a real turnaround in revenue before I call it value.

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