Optiemus Infra. (OPTIEMUS)

FairStock Score: 27/100 — RISKY

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

Key Financials

Strengths

• Low leverage with debt/equity of 0.32
• ROCE of 14.40% indicates reasonable operating capital efficiency
• Promoter holding of 72.17% provides concentrated ownership
• Quarterly sales of ₹430 Cr show meaningful operating scale
• Price is 43% below the 52-week high of ₹713, so some pessimism is priced in

Concerns

• P/E of 55.61 and P/B of 8.71 are expensive relative to earnings and book value
• Sales growth of -8.80% and profit growth of -18.47% show a shrinking business
• ROE of 5.39% and Piotroski F-score of 3/9 signal weak profitability and deteriorating fundamentals
• No dividend yield, so minority shareholders depend entirely on capital gains

AI Analysis

At ₹408, Optiemus trades at ₹3,670 crore market capitalization, yet trailing earnings are only about ₹66 crore (P/E 55.61). That is a rich price for a business whose sales fell 8.8% and profits fell 18.47%. Quarterly net profit of ₹12 crore on sales of ₹430 crore implies a thin 2.8% margin. ROE is just 5.39%, so the company is not compounding shareholder wealth at an impressive rate. ROCE of 14.40% is better, and debt/equity of 0.32 is manageable, but a 55 times earnings multiple leaves no room for error. Book value is ₹46.86, meaning the market pays 8.71 times book; Graham would demand a margin of safety, not this. There is no dividend, so minority holders rely solely on price appreciation. Promoter holding at 72.17% limits free float and can create governance issues. The Piotroski F-score of 3/9 confirms weak fundamental health. The 52-week range of ₹288-₹713 shows volatility; today's price is above the low but far from the high. This looks like a cyclical telecom-equipment business caught in declining demand, with negative growth and deteriorating profitability. As a value investor, I prefer consistent growers with strong moats and honest valuations. Optiemus fails those tests. I would need clear evidence that sales growth has turned positive, ROE has improved, and margins are expanding before I would even begin a deeper study. At this price, the risk-reward is unfavourable.

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