Om Infra Ltd
CMP: INR 88.70 | Market Cap: INR 8,380 Mn
Financial Overview
Margins in Jaljeevan Mission range from 12-15%, while in Hydropower, it’s about 15-20%,
ensuring a stable income source. Blended margins 10-12%.
Volatility in margins attributed to global raw material price fluctuations, impacting steel and
cement costs.
Regular payments within 15-30 days under Jaljeevan Mission ensure consistent cash flow for the
company.
Business Diversification
Om Infra engages in both hydropower and dam projects, with hydromechanical equipment
supply constituting a significant part.
The company has its own in-house manufacturing facility, enhancing efficiency and control over
the supply chain.
Foraying into pump storage projects, classified as renewable energy, aligns with the
government’s focus on clean energy sources.
Real Estate Monetization
Anticipated revenue of INR 300 crores to INR 400 crores over the next 2 years from real estate
projects like Jaipur and Kota.
Margins expected to be around 10 to 15%, with minimal additional investment required.
Future cash flow may lead to an increase in dividend payouts for investors.
Limited land bank for monetization, primarily Bombay project near Leelavati hospital.
Order Book
The current order book is over INR 3,000 Crores with a mix of hydro and water projects.
Execution period is around 2-3 years and 4-5 years for hydro power projects…
The company plans to participate in upcoming tenders for hydropower and pump storage
projects.
The GoI has renewed its focus on hydropower development – new opportunities for the
company.
In the pipeline to bid for about 2 to 3 thousand crore projects.
Expectation to increase bid capacity with revenue growth.
Projects take time to materialize, up to 12-16 months from announcement to finalization.
Slowdown foreseen in states with upcoming elections, potentially delaying project finalizations.
Unpredictability in project timelines due to litigations and election-related disruptions.
Despite a substantial pipeline, the order book could be impacted by the model code of conduct
and state-level uncertainties.
Open to venture outside india, already have presence in africa
Outlook: Om Infrastructures, positioned at the nexus of hydropower, dam projects, and real
estate, paints a promising future. With the Indian government renewing its commitment to
hydropower, recognizing it as vital for meeting peak power demand, Om Infra stands to benefit
from the country’s extensive river resources. Venturing into pump storage projects aligns
seamlessly with the clean energy drive, presenting a new avenue for growth. The anticipation of
substantial revenue from real estate projects over the next two years further strengthens the
company’s financial outlook.
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