Om Infra Limited – Mcap 336 Crs – CMP 35
Om Infra Ltd is an infrastructure co. having diverse business activities and interests related to Hydro-mechanical equipment, turnkey solutions for steel fabrication, Hydropower developments, Real Estate.
Few points which makes this company interesting at this price:
o Order Book of 3350 crs Plus in Water Infra and related projects. These orders are majorly under Jal Jeevan Mission, Hydro Mechanical Projects, Irrigation Projects and Dam Water Storage Projects.
o Enormous opportunity size for Water Infra companies in Hydro Power, River Linking, Water Supply & irrigation. Jal Shakti Abhiyan and Jal Jeevan Mission are major government focus areas.
o Company recently won an arbitration award of 587 crores from Rajasthan High Court. This is won by Subsidiary Bhilwara Jaipur Toll Private Ltd. Where company owns 51% stake. Co. is likely to receive award in coming few months.
o Company won an award of 190+crs in the same case earlier.
o This arbitration award win is bigger than the current market cap of the company.
o Company’s premium real estate project in Jaipur Palacia is 50% sold and rest is selling quickly, approx. 350 crs cash flows from this should arrive in next 2 years. Real estate activity in Jaipur has improved considerably post Covid.
o Bandra MHADA Project which has been delayed for many years is likely to pick up soon as Mumbai’s Real estate market is hot. Company estimates a saleable area of 250000 sq feet which is valued at 750 crs as per company. If this materialises it will be huge for the company.
o Company has a debt of around 140 crs which is easily manageable for its size.
o In Q3FY23 company recorded its highest revenue of 209 crs where profitability was subdued due to Inflation. EBITDA was at 4.74% which is likely to see major improvement in Q4FY23.
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