1. At a Glance
A Pune-based SME precision component manufacturer that’s flexing hard with Tenneco orders, EV play, and a ₹723 Cr order book. Small cap? Yes. Small ambition? Absolutely not.
2. Introduction with Hook
Imagine if Iron Man quit Avenging and started cold-forging EV components. That’s OBSC Perfection for you. With a name that sounds like a Marvel villain and an order book that’s grown faster than political promises before elections, OBSC is gunning for the big leagues in the automotive, defence, and aerospace sectors.
- FY25 Revenue: ₹145 Cr (up 25%)
- FY25 PAT: ₹16.7 Cr (up 37%)
- Total Order Book: ₹980 Cr over 5 years
The numbers say one thing: this company isn’t just chasing contracts, it’s collecting them like Infinity Stones.
3. Business Model (WTF Do They Even Do?)
OBSC Perfection Ltd manufactures precision-engineered metal components for:
- Auto OEMs and Tier I suppliers (think Tenneco, Bosch ecosystem)
- Defence and Marine sectors
- Telecom Infrastructure
- Now also entering Aerospace and EVs
They’re not making basic nuts and bolts. They’re making cold-forged, high-precision, high-strength stuff for machines that literally move nations (and economies).
Operations:
- Manufactures via forging and CNC machining
- Export-heavy model (recent US-based deals)
- End-use in EV suspensions, spacers, brackets, etc.
Also: They’re investing heavily in new forging facilities. Translation: More orders, faster delivery, and bigger margins.
4. Financials Overview
| Year | Revenue (₹ Cr) | EBITDA Margin | Net Profit (₹ Cr) | Net Profit Growth |
|---|---|---|---|---|
| FY22 | 56 | 13% | 4 | — |
| FY23 | 95 | 10% | 5 | 25% |
| FY24 | 115 | 18% | 12 | 140%+ |
| FY25 | 143 | 18% | 17 | 37% |
- Strong margin improvement since FY23 (thanks to order quality and efficiency)
- No dividend, but they’re using earnings for expansion (Capex in FY25: ₹33 Cr)
5. Valuation
Current Market Cap: ₹699 Cr
EPS (FY25): ₹6.85
P/E: 41.7x
Book Value: ₹42.5
Price/BV: 6.7x
Fair Value Range: ₹190 – ₹250
Justified due to order visibility, but any miss in execution could flatten that perfection curve. It’s priced for growth—like your neighborhood café charging ₹450 for avocado toast because “ambience.”
6. What’s Cooking – News, Triggers, Drama
- Export Orders Galore: ₹160 Cr + ₹97.5 Cr + ₹29 Cr = ₹286.5 Cr in just 3 orders
- Aerospace Entry: Big capex into facilities for aerospace components
- ₹980 Cr Order Book: That’s 6.8x FY25 revenue
- IPO Funds Utilized Efficiently: Confirmed, no shady business
- Promoters Increasing Stake: From 73.00% to 73.49% in Mar 2025
Trigger Alert: Execution delays or margin compression due to capex could spook investors used to perfection.
7. Balance Sheet
| FY | Equity | Reserves | Borrowings | Total Assets |
|---|---|---|---|---|
| 2022 | ₹12 Cr | ₹1 Cr | ₹19 Cr | ₹48 Cr |
| 2023 | ₹12 Cr | ₹6 Cr | ₹33 Cr | ₹69 Cr |
| 2024 | ₹18 Cr | ₹12 Cr | ₹41 Cr | ₹86 Cr |
| 2025 | ₹24 Cr | ₹80 Cr | ₹27 Cr | ₹159 Cr |
Key Points:
- Reserves shot up from ₹12 Cr to ₹80 Cr. That’s not growth—it’s rocket launch.
- Debt came down in FY25 even after ₹33 Cr capex. Efficient capital use? Check.
8. Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net Flow |
|---|---|---|---|---|
| FY22 | 6 | -6 | -1 | -1 |
| FY23 | 1 | -14 | 13 | 0 |
| FY24 | 5 | -11 | 5 | -0 |
| FY25 | 9 | -32 | 40 | 16 |
Takeaway:
They’re burning cash on investing (in plants and machines), but raising funds cleverly to stay positive. Good CFOs call this “strategic reinvestment.” Others call it guts.
9. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROE | 25% |
| ROCE | 23.5% |
| Debtor Days | 89 |
| Inventory Days | 92 |
| CCC | 94 |
Verdict: ROE and ROCE are hot. Debtors and inventory levels? Less so. You’re a precision parts maker, not a warehouse manager. Get those days down.
10. P&L Breakdown – Show Me the Money
| Year | Sales | Expenses | EBIT | PAT | OPM % |
|---|---|---|---|---|---|
| FY22 | ₹56 Cr | ₹48 Cr | ₹7 Cr | ₹4 Cr | 13% |
| FY23 | ₹95 Cr | ₹85 Cr | ₹10 Cr | ₹5 Cr | 10% |
| FY24 | ₹115 Cr | ₹94 Cr | ₹21 Cr | ₹12 Cr | 18% |
| FY25 | ₹143 Cr | ₹117 Cr | ₹25 Cr | ₹17 Cr | 18% |
Double-digit OPM and a steady climb in PAT = rare combination for a small cap.
11. Peer Comparison
| Company | P/E | ROE % | OPM % | Sales (₹ Cr) | Mcap (₹ Cr) |
|---|---|---|---|---|---|
| Bosch | 55.49 | 15.55 | 12.77 | 18,087 | 1,11,661 |
| Schaeffler | 65.08 | 19.17 | 18.4 | 8,337 | 66,086 |
| Uno Minda | 66.15 | 17.56 | 11.17 | 16,774 | 61,974 |
| Endurance Tech | 45.80 | 15.47 | 13.42 | 11,560 | 37,879 |
| OBSC | 41.7 | 25.0 | 17.8 | 143 | 699 |
OBSC punches above its market cap class on margins and ROE.
12. Miscellaneous – Shareholding, Promoters
| Category | Mar 2025 |
|---|---|
| Promoters | 73.49% |
| FIIs | 3.58% |
| DIIs | 1.30% |
| Public | 21.63% |
Big takeaway: FIIs were at 9.46% in Oct 2024 and dropped to 3.58%. Why? Likely profit booking post-IPO gains. Promoters buying more says they’re confident.
13. EduInvesting Verdict™
OBSC Perfection isn’t just a name—it’s an ambition. With solid order inflows, growing export ties, and a play in defence and aerospace, the company is operating like a much bigger player. But the market cap says SME, while the fundamentals whisper “mid-cap-in-the-making.”
A ₹980 Cr order book on a ₹143 Cr topline? Either they deliver, or perfection becomes pressure.
Metadata
– Written by EduInvesting Research | July 14, 2025
– Tags: OBSC Perfection, SME Auto Components, EV Exports, Aerospace Entry, Tenneco Deal, Order Book Growth, Capex Stocks
