Business
Can Omnitech IPO deliver long-term growth for investors?
The promoter group’s stake will fall to 74.2% after the IPO from 94.1%. The company has a loyal customer base with 97% of revenue coming from repeat business. With about 79% of its revenue coming from exports, including 58% from the US, the company faces geographical and tariff related risks. Additionally, It exhibited a longer working capital cycle and had negative cash flow from operations in FY25. Given these factors, investors may wait to see clarity in financials.
Business
Incorporated in 2006, Omnitech caters to customers across sectors such as energy, motion control and automation, industrial equipment systems, metal forming and others. It has three manufacturing units, all in Gujarat thereby creating geographic concentration risks. For instance, flooding from excessive rainfall in FY25 disrupted operations. It has a leased warehouse in Houston, USA. The company imports about 37% of its materials and uses hedging techniques to reduce currency risks.
World Matters Biz is growing at high-precision components maker, but co is exposed to tariff shifts and has longer working capital cycle
Financials
Between FY23 and FY25, revenue grew by 39.1% annually to ‘342.9 crore and net profit rose 16.5% to ‘43.9 crore. Around 30% revenue comes from top three customers. The company has a longer working capital cycle – net working capital days at 256 in the six months to September. This may increase working capital needs thereby raising interest outgo.
Live Events
Cash flow from operating activities was ‘11.8 crore in the first half of FY26, but the company faced operating cash flow deficit of ’69 crore in FY25, dropping from positive cash flow of ‘39.4 crore in FY23. Though return on equity (ROE) dropped sharply to 21.6% in FY25 from 53.9% in FY23, it remains well above peer range of 6-13%. For the six months ended September 2025, the company’s revenue and net profit was ‘228.2 crore and ‘27.8 crore, respectively.
Valuation
Considering the post-IPO equity and annualised profit for FY26, the price-earnings (P/E) multiple is 50 compared with above 66 for peers including Azad Engineering, Unimech Aerospace and Manufacturing, and PTC Industries.