Omnitech Engineering IPO Review
About the Company
Omnitech Engineering Ltd. is a precision engineering and industrial automation solutions provider offering customised mechanical systems across sectors such as automotive, aerospace, pharmaceuticals and manufacturing. The company specialises in design, fabrication, assembly and integration of high-performance equipment aimed at improving productivity and efficiency. With three advanced manufacturing facilities in Gujarat and a diversified export-driven product portfolio, Omnitech has built strong relationships with marquee customers. While the business benefits from manufacturing modernisation and automation demand, high borrowings and execution risks in expansion projects remain key monitorables.
Financials (Rs. crore – Consolidated)
| Particulars | 30 Sep 2025 | 31 Mar 2025 | 31 Mar 2024 | 31 Mar 2023 |
|---|---|---|---|---|
| Assets | 766.65 | 626.33 | 386.99 | 185.18 |
| Total Income | 236.69 | 349.71 | 181.95 | 183.71 |
| EBITDA | 70.08 | 117.65 | 64.94 | 63.46 |
| PAT | 27.78 | 43.87 | 18.91 | 32.29 |
| Net Worth | 232.27 | 204.44 | 78.81 | 59.90 |
| Reserves & Surplus | 179.65 | 151.81 | 28.81 | 54.90 |
| Total Borrowings | 382.91 | 330.63 | 230.49 | 88.81 |
Key Performance Indicators (KPI)
| KPI | Sep 30, 2025 | Mar 31, 2025 |
|---|---|---|
| ROE | 12.07% | 21.55% |
| ROCE | 9.19% | 16.08% |
| Debt/Equity | 1.65 | 1.60 |
| RoNW | 11.96% | 21.46% |
| PAT Margin | 11.74% | 12.54% |
| EBITDA Margin | 30.72% | 34.31% |
Peer Comparison
Omnitech Engineering operates in the specialised precision engineering and automation segment where comparable listed peers include mid-sized capital goods and engineering players. While the company offers diversified sector exposure and export opportunities, its leverage levels and moderate return ratios remain slightly weaker than established peers, suggesting a balanced risk–reward profile.
Industrial Scenario
The precision engineering and industrial automation sector is witnessing structural growth driven by India’s manufacturing expansion, global supply chain diversification and increasing adoption of automation technologies. Rising demand for customised engineering solutions across industries is expected to support long-term growth, though cyclicality in industrial capex may influence near-term performance.
Valuation Analysis
At the upper price band of Rs. 227, the IPO appears fairly valued considering the company’s growth trajectory and engineering manufacturing theme. The offer size of around Rs. 583 crore and sectoral interest could drive healthy but selective oversubscription. However, elevated borrowings and execution risks may limit aggressive premium expansion in the short term.
Final Verdict – Chanakya View
Neutral to Positive. The IPO provides exposure to the precision engineering and automation theme with export-driven growth potential. Suitable for investors with medium- to long-term horizon who can tolerate moderate risk arising from leverage and expansion execution.
CHANAKYA VERDICT: Apply (Medium Risk)
Apply View: Neutral to Positive
Risk Meter: Medium
Valuation Meter: Fair to Slightly Premium
Suitable For: Investors seeking engineering manufacturing exposure with positional horizon
Avoid If: Looking for low-risk listing gains or conservative balance sheet profile
👉 Chanakya Grey Market Intelligence – 8 PM Edition | News Crux |
👉 Power Calls | Breakout Stocks | Coffee Can Portfolio |
Quicklinks