Picture this: A ₹67.6 crore market cap company, dressed in shiny aluminium, knocking on Dalal Street’s SME door with a ₹22.35 crore IPO. In just one year, Om Metallogic polished its revenue by 55% to ₹60.4 crore and doubled its profit by 86% to ₹4.1 crore. The current IPO is priced at ₹86 a piece – that’s not a razor blade, that’s the cost of two vadapavs plus a cutting chai in South Bombay. Pre-issue EPS was a solid ₹7.82, but post-issue, like a magician’s trick, it slims to ₹5.24. Market is giving it a post-issue P/E of ~16.4x. Not cheap, but not “Bangalore coffee overpriced” either. Debt/Equity at 0.88 means they still owe more than your flat EMI, but manageable.
So, is this a recycling hero or a scrap dealer with an IPO makeover? Keep your magnifying glass ready.
2. Introduction
Every IPO season, we get two kinds of companies:
The ones who polish their balance sheet like Diwali silverware, and
The ones who think investors are dumb enough to buy rust with fairy lights.
Om Metallogic falls somewhere in between. Incorporated in 2011, the company recycles aluminium scrap into alloys, ingots, cubes, and shots – basically the Legos of the industrial world. Their pitch? “We’re green, we’re clean, and we can melt junk into money.”
Recycling sounds noble. ESG investors drool. Politicians get photos clicked. But if you’ve lived in India, you know the difference between “kabadiwala” and “metal recycler” is mostly branding. Om Metallogic has branded itself as a “state-of-the-art facility” in Ballabhgarh, Haryana. Translation: they run an 800-ton per month furnace where the real action is scrap in, ingots out, and hopefully no furnace explosions.
The IPO is fresh issue only – promoters Manish and Seema Sharma are not cashing out. They’re diluting from 88.5% to 59.3%. Admirable, or just forced by SEBI SME listing norms? You decide.
But here’s the real question: if you had ₹2.75 lakh spare, would you rather buy 3,200 shares of Om Metallogic… or 3,200 samosas for life-long happiness?
3. Business Model – WTF Do They Even Do?
Let me spell this like a detective explaining clues to Dr. Watson.
Clue 1: Aluminium scrap is everywhere – from junked cars to failed satellite dishes. Om Metallogic collects, sorts, melts, and repackages this into standard forms like ingots, cubes, and shots.
Clue 2: Their alloys land up in autos, construction, food packaging, and even electrical cables. So, the next time your overhead wires don’t catch fire, thank a Ballabhgarh furnace.
Clue 3: They don’t just recycle; they provide “custom alloys” – essentially playing bartender with molten aluminium, mixing the right amount of copper or zinc as per client specs.
Clue 4: Scrap processing services – collection, segregation, cutting, melting. Sounds like kabadiwala 2.0, but with a PowerPoint deck.
Clue 5: They offer “custom recycling solutions” to help industries manage waste. Which is a fancy way of saying: “Give us your junk, we’ll charge you for disposing it and resell the output.”
So basically, Om Metallogic = metal kabadiwala meets metallurgist meets ESG influencer. Not bad.
But here’s the riddle: if demand for aluminium is booming (thanks to EVs, construction, packaging), why are they raising just ₹22 crore? Why not bigger expansion? Detective eyebrow raised.
4. Financials Overview
Metric
Latest Qtr (Q4FY25)*
YoY Qtr (Q4FY24)
Prev Qtr (Q3FY25)
YoY %
QoQ %
Revenue (₹ Cr)
15.1
9.7
14.6
55.7%
3.4%
EBITDA (₹ Cr)
1.56
0.93
1.52
67.7%
2.6%
PAT (₹ Cr)
1.03
0.55
1.00
87.3%
3.0%
EPS (₹)
1.03
0.55
1.00
87.3%
3.0%
*Derived from FY25 totals split across quarters.
Detective’s note: Quarterly EPS annualised = ₹4.12. Post-issue, EPS will fall to ~₹5.24 because of dilution. Market is valuing them at ~16.4x FY25 earnings. Not cheap for a kabadiwala, but hey – investors paid 80x for Zomato once.
5. Valuation Discussion – Fair Value Range
Let’s crack this with three lenses:
a) P/E Method
FY25 PAT = ₹4.12 Cr.
Post-issue shares = 78.62 lakh.
EPS = ₹5.24.
If market pays 12x–18x P/E (reasonable SME band): Fair value = ₹63 – ₹94.
