When it comes to strategic investments, few companies showcase as diverse a portfolio as Oswal Greentech Ltd. This multifaceted enterprise has been venturing into real estate development and financial management since the 1980s.
As we explore Oswal Greentech’s Q4 results for FY24, let’s assess the company’s financial performance, and evaluate its strategic initiatives, and potential for long-term value creation.
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About Oswal Greentech Ltd.
In 1981, Oswal Chemicals & Fertilisers Limited was founded, which later became Oswal Green Tech Limited. Oswal Green Tech Ltd is a dynamic enterprise listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
The company has a diversified portfolio in real estate development and financial management through interest-bearing inter-corporate deposits.
Oswal Green Tech engages in creating and enhancing physical spaces, contributing to urban development and infrastructure growth. In addition to real estate, the company actively manages its surplus funds through strategic investments.
Oswal Greentech Q4 results: Quarterly performance analysis
Oswal Greentech Ltd has recently released its financial results for the Q4 of the fiscal year 2024, showcasing a mixed performance. The company’s revenue saw a significant increase of 31.7% from the same period last year, reaching ₹31.49 crore.
This growth is particularly impressive considering the 102.25% jump in revenue compared to the previous quarter. However, the net profit tells a different story, with a 38.03% decrease since the same period last year, amounting to ₹3.34 crore.
Despite this yearly decline, the company turned things around every quarter, with a 221.45% increase in net profits. For Q4, the EPS was ₹0.13, a 37.34% year-over-year decline.
That said, here is an overview of Oswal Greentech’s performance over the past quarters in FY24.
| RESULTS | JUN ’23 – Q1 | Sept ‘23- Q2 | Dec ‘23- Q3 | Mar ‘24- Q4 |
| Sales (₹ cr.) | 6.93 | 11.36 | 9.73 | 25.45 |
| Net Profit (₹ Cr.) | 9.01 | -3.23 | -2.75 | 3.34 |
| EPS (₹) | 0.35 | -0.13 | -0.11 | 0.13 |
Also read: Is real estate growth in India sustainable? Opportunities vs Challenges!
Fiscal overview: FY24 growth over FY23
| Consolidated results | FY24 | vs. FY23 | % change |
| Revenue (₹ cr.) | 55.60 | 96.94 | -42.64 |
| Profit before tax (₹ cr.) | 10.53 | 58.25 | -81.92 |
| Net profit (₹ cr.) | 6.37 | 37.88 | -83.18 |
Oswal Greentech share price news
As of May 30, 2024, Oswal Greentech shares are trading at ₹31.35 with a 52-week high of ₹49.40 and a 52-week low of ₹20.85. As per the Oswal Greentech share price history, the stock has increased 44.80% in the last 1 year and 39.33% in the past 5 years.
At present, Oswal Greentech’s market capitalization is at ₹812 crore.
Current financials
| Metric | Value (as of May 30, 2024) |
| Market cap (₹ Cr.) | 812 |
| Book value (₹) | 96.9 |
| Dividend Yield | 4.74% |
| ROCE | 0.45% |
| ROE | 0.26 % |
| Stock PE | 128 |
Competitor information of Oswal Greentech
| Companies (as of May 29, 2024) | P/E | Market cap(₹ crores) | ROE (%) | Net profit last quarter (₹ crores) |
| Bajaj Finance | 28.59 | 412867.42 | 22.05 | 3824.53 |
| Bajaj Finserv | 29.89 | 243583.28 | 15.27 | 4084.93 |
| Jio Financial | 138.18 | 221697.83 | 1.27 | 310.63 |
Also read: Jio Financial Services: Disrupting the insurance and AMC markets
Shareholding pattern of Oswal Greentech
The shareholding pattern (as of March 2024) of Oswal Greentech is as follows:
| Promoters | 64.33% |
| Foreign Institutional Investors (FIIs) | 0.03% |
| Domestic Institutional Investors (DIIs) | 0.02% |
| Public | 35.63% |
Investing in Oswal Greentech
Pros
- No debt:
A debt-to-equity ratio of 0.00 indicates that Oswal Greentech operates without the burden of debt. This is a significant advantage, as it means the company is not at risk of defaulting on loans, and it has the flexibility to invest in growth opportunities without being constrained by interest payments.
For investors, this can be reassuring, as the company’s financial health is not compromised by debt-related obligations.
- High net profit margin:
Another green flag of investing in Oswal Greentech is its exceptionally high net profit margins. The company has shown a robust financial performance with a latest net profit margin of 184.78%. This suggests efficient management and a strong potential for profitability.
Additionally, the 3-year average margin of 211.53% and 5-year average of 250.07% suggest that the company has sustained a high level of profitability over time. This can be a positive sign for the investors as well.
Cons
- High PE ratio:
The PE ratio of 128 is significantly higher than the industry average of 30.99. This shows that the stock of the firm may be overpriced concerning its earnings, which value-conscious investors may find concerning. In comparison to the company’s earnings, a high PE ratio may suggest that the stock price is expensive and may not be long-term viable.
- Declining ROCE:
The return on capital employed has been declining over the last two years, from 2.53% in March 2022 to 0.45% in March 2024. The corporation may be growing less effective at converting capital into earnings.
If the company’s management is not making the most of its funds, investors may take this as a red flag that might affect the company’s future development and profitability.
Conclusion
Oswal Greentech Ltd.’s fourth-quarter results have painted a mixed picture, highlighting both areas of strength and challenges. While the company’s revenue growth and improved net cash flow are positive indicators, the high PE ratio, and decreasing ROCE raise concerns.
For investors seeking exposure to the real estate and financial sectors, Oswal Greentech presents an opportunity to diversify their portfolios. However, a careful evaluation of the company’s financial performance is needed to make informed investment decisions.
