Om Infra was listed on the NSE/BSE on June 17, 2011. In the last five years, the company has given a massive return of more than 400% to its investors. Will Om Infra continue to provide such great returns in the future as well? Let’s explore Om Infra growth potential and Om Infra share price target from 2025 to 2050 in this article.
About Om Infra
Om Infra Limited is an Indian company that focusses in infrastructure and engineering projects. Established in 1971, it has worked on a variety of construction and development projects, including water resource management, dams, and real estate. The company specialises in turnkey projects involving hydroelectric power, irrigation, and urban infrastructure. Om Infra has grown its operations and established a strong presence in the infrastructure sector over the years, using its engineering expertise to help India develop.
Om Infra Business Model
- Water Infrastructure Projects: Om Infra makes money by building dams, canals, and irrigation systems for both government and private clients.
- Engineering and Construction: Om Infra generates revenue by offering engineering, procurement, and construction (EPC) services for large infrastructure projects.
- Real Estate Development: The company makes money by building and selling residential and commercial real estate properties.
- Manufacturing of Hydro-mechanical Equipment: Om Infra manufactures hydromechanical equipment for water projects and makes money by selling it to other companies.
- Operation and Maintenance Services: The company makes money by maintaining and operating water and infrastructure projects for clients after they have been completed.
- Renewable Energy Projects: Om Infra is involved in hydro and solar power projects, which generate revenue through electricity and government contracts.
Om Infra Fundamental Analysis
Om Infra Fundamental Analysis
| Stock Name | Om Infra Ltd. |
|---|---|
| NSE Symbol | OMINFRAL |
| Market Cap | ₹ 1,184 Cr. |
| 52W High | ₹ 228 |
| 52W Low | ₹ 97 |
| Stock P/E | 49 |
| Book Value | ₹ 76.3 |
| Dividend Yield | 0.42% |
| ROCE | 12.2 % |
| ROE | 6.36% |
| Face Value | ₹ 1.00 |
| Shareholders | March 2023 | March 2024 | Dec 2024 |
|---|---|---|---|
| Promoters | 71.68% | 69.09% | 67.05% |
| FIIs | 0.04% | 0.38% | 0.03% |
| DIIs | 0.00% | 0.00% | 4.06% |
| Public | 28.28% | 30.53% | 28.86% |
| No. of Shareholders | 19,907 | 26,631 | 38,617 |
Key Factors Driving Om Infra Future Growth
- Government Projects: Om Infra gets work from the government for infrastructure projects, especially in water management and construction. More government spending means more business for Om Infra.
- Rising Demand for Water Management: As cities grow, the need for better water supply and sewage systems is increasing. Om Infra benefits from this demand by building and maintaining such projects.
- Strong Order Book: Om Infra has a number of ongoing and upcoming projects, ensuring consistent revenue in the future. A strong order book indicates steady growth.
- Expansion into New Areas: Om Infra is expanding its business into new regions, which will help it grow its customer base and earnings.
- Technological Advancements: Om Infra is using better technology in construction and water management, helping it complete projects faster and at lower costs.
- Public-Private Partnerships (PPP): Om Infra works with both the government and private companies, which helps in getting large-scale projects and boosting its earnings.
- Focus on Sustainable Projects: Om Infra is working on projects that are sustainable, such as renewable energy and efficient water use, to meet future needs.
- Strong Industry Demand: India is investing heavily in infrastructure development, and Om Infra benefits from the overall growth in the sector.
- Increasing Awareness of Water Conservation: With growing concerns about water shortages, governments and industries are investing in better water management, creating more opportunities for Om Infra.
Pros of Om Infra
- Strong Sales Growth: Om Infra has achieved a strong sales growth of 68% CAGR over the last 3 years.
- Strong Profit Growth: Om Infra has achieved a strong profit growth of 72% CAGR over the last 3 years.
- Low P/B Ratio (Undervalued Stock): Om Infra has a low Price to Book Value (P/B) ratio of 1.64, which indicates that it is trading close to its intrinsic value and may be undervalued.
- Low Debt Levels: With a low debt-to-equity ratio of 0.14, Om Infra has a minimum dependency on debt, reducing financial risk and interest expenses.
- Increase in DIIs Holding: DIIs holding increased from 3.92% in September 2024 to 4.06% in December 2024, showing a positive outlook towards Om Infra by the DIIs.
Cons of Om Infra
- Low Return on Equity (ROE): Om Infra’s 5-year average ROE is 6.36%, which indicates inefficient use of shareholder funds to generate profits.
- Decrease in FIIs Holding: Foreign Institutional Investors (FIIs) have reduced their holding to 0.03% in December 2024 from 0.06% in September 2024, indicating a decline in FII’s confidence in the company’s future growth prospects.
| Years | Target Price |
|---|---|
| Om Infra Share Price Target 2025 | ₹155 to ₹195 |
| Om Infra Share Price Target 2026 | ₹185 to ₹255 |
| Om Infra Share Price Target 2027 | ₹225 to ₹330 |
| Om Infra Share Price Target 2028 | ₹270 to ₹430 |
| Om Infra Share Price Target 2029 | ₹320 to ₹550 |
| Om Infra Share Price Target 2030 | ₹400 to ₹720 |
| Om Infra Share Price Target 2035 | ₹800 to ₹2150 |
| Om Infra Share Price Target 2040 | ₹1600 to ₹6500 |
| Om Infra Share Price Target 2050 | ₹6000 to ₹40000 |
Conclusion
Om Infra has experienced rapid growth in recent years, driven by government projects, rising demand for water management, and expansion into new markets. Om Infra has the potential for consistent growth thanks to a strong order book, low debt levels, and increased infrastructure investment in India. However, factors such as low return on equity and declining FII holdings present challenges. If the company keeps using technological advancements and sustainable projects, it has the potential for significant long-term growth. For the latest updates, you can visit Om Infra’s official website.
Disclaimer
This article is for educational purposes only. It is not a stock recommendation and should not be treated as such. Please ask your financial advisor before making any investment decision.
Also Read: HCC Share Price Target 2025 to 2050