OnMobile Global (ONMOBILE)

FairStock Score: 2/100 — RISKY

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

Key Financials

Strengths

• Trades below book value: P/B 0.86 against book value ₹64.82 per share, offering some asset downside cushion.
• Conservative capital structure: debt/equity is only 0.12.
• Promoter holding at 47.90% aligns promoters with minority shareholders.
• Latest quarter recorded positive net profit of ₹4 Cr on sales of ₹136 Cr; profit growth of 275.74% shows earnings recovery off a low base.

Concerns

• Revenue is declining sharply: sales growth is -17.27%.
• ROCE of -2.34% and ROE of 5.49% indicate poor returns on capital and equity.
• P/E of 31.02 with a razor-thin net margin of roughly 2.9% makes the valuation expensive on current earnings.
• Zero dividend yield and FairStock Score of 20/100 suggest high risk; Piotroski F-score of 5 confirms mediocre financial health.

AI Analysis

OnMobile Global presents a classic value paradox. At ₹55.93, the stock trades at just 0.86 times book value of ₹64.82, offering a statistical margin of safety. But Graham taught us that a low price-to-book is only meaningful if management can earn a decent return on that book. Here, ROE is just 5.49%, and ROCE is worse at -2.34%, meaning the business is not generating enough operating return to justify its assets. Sales have declined 17.27%, while the latest quarter shows only ₹4 Cr net profit on ₹136 Cr sales — a razor-thin margin. The reported profit growth of 275.74% looks impressive at first, but with negative sales growth and a P/E of 31, this is a low-quality earnings bounce, not a durable compounding franchise. The balance sheet is conservative: debt/equity is only 0.12, and promoters hold 47.90%, which aligns interests. Yet with zero dividend and a FairStock score of 20/100, this is not a business I would call a wonderful company. It may be a candidate for patient asset investors if operations stabilize. The Piotroski F-score of 5 suggests mediocre financial health. I would need to see revenue stop falling, ROCE turn positive, and profit margins expand before I commit capital. For now, this is a cheap stock of a struggling business, not a wonderful business at a fair price. I might watch from the sidelines, keeping it on my radar as a potential turnaround if fundamentals confirm improvement.

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