SME se NSE tak ka safar – paani ke business mein liquidity toh zaroor aayi hai
🧠 At a Glance
Oswal Pumps made a splashy debut on NSE on June 20 at ₹625. But here’s the twist – it’s trading at a price-to-book of 19x, even though the earnings data is suspiciously dry and the P/E is still MIA. From 100% promoter holding to just 75.67% after listing, and a market cap of ₹7,127 Cr on ₹758 Cr revenue – this pump might need a valuation pressure regulator.
🪜 From Borewell to BSE to NSE
- Oswal Pumps isn’t new to markets. It was already listed on BSE as an SME stock.
- The NSE listing was a mainboard transition, not a fresh IPO – meaning no new shares issued, but now open to wider public participation.
- That’s why no fresh IPO documents are floating – just a silent switch with a loud price tag.
📊 Financials: Yeh Pump Kaafi Overpriced Hai
| Metric | FY24 (₹ Cr) |
|---|---|
| Revenue | ₹758 Cr |
| Net Profit | ₹97 Cr |
| Book Value/Share | ₹32.78 |
| P/B Ratio | 19.08x |
| Market Cap | ₹7,127 Cr |
| Promoter Holding | 75.67% (↓ from 100%) |
⚠️ Price/Earnings (P/E): Not available – either EPS is 0 or hidden in a water tank.
🧻 What’s Cooking?
- ✅ No Pledging: 0% promoter pledge – love that.
- 🧽 Price inflated by low float? Possibly. 25% non-promoter stake just entered the system in June 2025.
- 🧾 P/B of 19x in an industrial equipment company? Even Thermax and BHEL are cheaper.
🕵️♂️ Who Are the Big Buyers?
- From 0% to:
- FII Holding: 4.18%
- DII Holding: 9.24%
- Public: 9.66%
- Others: 1.26%
➡️ Together, non-promoter holding = 24.33%, most of which was likely offloaded in the transition phase.
👀 Translation: This looks like a pre-planned institutional exit route, now gifted to retail.
📉 Valuation: Pumps Toh Hai, But Numbers Mein Air Pocket
- At ₹625/share:
- Market Cap = ₹7,127 Cr
- Net Profit = ₹97 Cr
- That’s a guesstimate P/E of ~73x (if profit is real and repeatable)
💡 Industry average P/E? ~46x
💡 Oswal’s P/E? Likely 70-80x, assuming it’s even earning consistently.
🔎 We’re basically pricing it like an FMCG brand, not a hardware manufacturer from Karnal.
🧠 Fair Value Range – Realistic or Unrealistic?
Let’s be generous and apply:
- 20x P/E on ₹97 Cr profit → ₹1,940 Cr market cap
- Divide by ~11.4 Cr shares = ₹170/share FV
- Even at 30x P/E, you get ₹250 max
🧮 Fair Value Estimate: ₹170 – ₹250
(Current Price: ₹625 😬)
😅 Final Verdict: Pumped Too Hard?
🧻 While the company might genuinely be a strong rural water infra play, the lack of financial transparency, unjustified P/B of 19x, and sky-high valuation without fresh growth story make it feel like one of those:
“Jab sab buy kar rahe ho, check karo kya bechne wale bhi dance kar rahe hain?”
For now, Oswal is listed.
Retail entered.
Valuation leaked.
Water… not found.
✍️ Written by Prashant | 📅 June 21, 2025
Tags: Oswal Pumps, SME IPO, NSE listing, stock analysis, capital goods, valuation bubble, industrial equipment, EduInvesting roast, financial satire, promoter dilution, P/B ratio
