1. At a Glance
An ancient oxygen company that gave up breathing (gases) in 2019, Bombay Oxygen is now a glorified mutual fund in disguise. It doesn’t make anything, it doesn’t sell anything, but it owns a lot — making passive income sexy again.
2. Introduction with Hook
If Warren Buffett and a vault full of LIC mutual fund NAVs had a baby, it would be Bombay Oxygen Investments Ltd. Once a sleepy industrial gas firm, it now does what every retired rich man dreams of: sipping dividends from other people’s hustle.
- Book Value: ₹32,205 per share
- Stock Price: ₹24,425 (yep, trading at 0.76x its book — discount shopping, anyone?)
- ROE: A not-so-glorious 3.62%, but hey — it’s not working hard, it’s working smart
3. Business Model (WTF Do They Even Do?)
Bombay Oxygen was an industrial gas manufacturer… until it decided “enough of this capitalist grind” in 2019. Now it’s a holding company that:
- Invests in listed equities, mutual funds, and debt papers
- Earns via dividends, interest income, and capital gains
- Doesn’t have operations, doesn’t have revenue headaches
- Doesn’t have debt — just cash, assets, and vibes
Think of it as a boomer who quit his job early but still lives off a glorious 80s bull run portfolio.
4. Financials Overview
Let’s not pretend this is HDFC Bank. Here’s what recent years looked like (Rs Cr):
| FY | Sales | Net Profit | ROE % | EPS (₹) |
|---|---|---|---|---|
| 2023 | ₹3 | ₹5 | 1.5% | ₹328 |
| 2024 | ₹72 | ₹58 | 18% | ₹3,840 |
| 2025 | ₹20 | ₹18 | 4% | ₹1,167 |
Highlights:
- Lumpy profits because… market mood swings
- Operating margins are >90% (because doing nothing is cheap)
- Revenue = portfolio dividends & gains, not “sales” per se
5. Valuation
- Book Value: ₹32,205
- CMP: ₹24,425 → 24% discount to BV
- PE Ratio: 21.4x (but honestly, does PE even matter here?)
- Dividend Yield: 0.14% (stingier than your CA)
Fair Value Range (based on NAV, peer discounting, and adjusted ROE):
₹28,000 – ₹36,000
This is basically buying an MF NAV basket at a 20–30% discount. If it were a liquid ETF, there’d be a stampede.
6. What’s Cooking – News, Triggers, Drama
- No operations = No drama
- AGM held, dividend declared (₹30/share)
- Company quietly holds equity in marquee firms (though they won’t list holdings publicly)
- Low float + Promoters hold 73% = illiquid AF
7. Balance Sheet
| Item | FY25 (Rs Cr) |
|---|---|
| Equity Capital | 2 |
| Reserves | 482 |
| Borrowings | 0 |
| Fixed Assets | 7 |
| Investments | 501 |
| Other Assets | 1 |
| Total Assets | 509 |
Key Takeaways:
- No debt. Zero. Zilch. Nada.
- 98% of total assets are just investments sitting in equity/mutual funds
- Fixed assets are symbolic — they own an old building and probably a coffee machine
8. Cash Flow – Sab Number Game Hai
| Metric | FY25 (Rs Cr) |
|---|---|
| Cash from Ops | -3 |
| Investing Cash Flow | +3 |
| Financing Cash Flow | -0 |
| Net Cash Flow | 0 |
Takeaway:
They don’t do much, so there’s not much cash flowing — it’s all about holding long-term.
9. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROE | 3.62% |
| ROCE | 3.89% |
| PE | 21.4x |
| PB | 0.76x |
| Dividend Payout | 3% |
Verdict?
- PE is misleading due to inconsistent profit
- PB is a huge plus: this is trading at a discount to its NAV
- Returns are muted due to capital sitting idle in long-term holdings
10. P&L Breakdown – Show Me the Money
| Year | Total Income | Expenses | Net Profit |
|---|---|---|---|
| FY24 | ₹72 Cr | ₹2 Cr | ₹58 Cr |
| FY25 | ₹20 Cr | ₹2 Cr | ₹18 Cr |
Story:
Income = capital market joyrides
Expenses = AC bills & AGM snacks
11. Peer Comparison
| Company | CMP (₹) | ROE % | PE | PB | MCap (Cr) |
|---|---|---|---|---|---|
| Bajaj Finance | 921 | 19.22 | 34.3 | 5.92 | 5,72,925 |
| Sundaram Fin | 5,038 | 15.27 | 30.1 | 4.24 | 55,963 |
| Bombay Oxygen | 24,425 | 3.62 | 21.4 | 0.76 | 366 |
Takeaway:
This isn’t your standard NBFC. It’s a black box holding equity investments, not loan books. So peer comps = slightly useless.
12. Miscellaneous – Shareholding, Promoters
| Shareholder | % Holding |
|---|---|
| Promoters | 73.29% |
| Public | 26.66% |
| FIIs/DIIs | Virtually Zero |
- Shareholding hasn’t changed in years. It’s as stable as a monk in meditation.
- Around 3,100 shareholders — mostly patient old-school investors who love long-term compounding.
13. EduInvesting Verdict™
Bombay Oxygen is the literal embodiment of “money working for you while you sip chai and read the newspaper”. It holds equity. It doesn’t run businesses. It’s an old-school wealth box with zero debt and a fat investment chest.
Is it exciting? No.
Is it dramatic? Never.
But if you like NAV discounts, sleepy scrips, and legacy cashboxes — this is your jam.
Metadata
– Written by EduInvesting Analyst | 16 July 2025
– Tags: Bombay Oxygen, NAV discount stocks, Passive investing, Holding companies, Deep value picks
