1. At a Glance
Oswal Pumps Ltd (OPL) isn’t just pumping water—it’s pumping government schemes, IPO proceeds, and investor adrenaline. With an87% ROE,77.9% ROCE, and a38% market share under PM-Kusum, the company has positioned itself as the farmer’s best friend and the taxpayer’s silent enemy. Fresh off a ₹1,387 crore IPO in June 2025, Oswal is essentially the guy who crashed the village wedding, ate half the biryani, and still walked away with everyone’s blessings.
2. Introduction
Imagine a company that sells water pumps to farmers under a government subsidy scheme, bills 87% of its revenues to PM-Kusum, and then struts around Dalal Street like it invented solar energy. Welcome to Oswal Pumps Ltd.
The company was incorporated in 2003 in Karnal, Haryana—a place known for two things: agriculture and jugaad. Oswal figured, why not combine both? Build solar pumps, get the government to subsidize them, and voila—you’ve got a money machine that prints more than the local cooperative bank.
And investors? Oh, they lapped it up. The IPO raised ₹1,387 crores with897 crores earmarked for capex, debt repayment, and a little “general corporate purposes” (aka chai-paani fund). With a market cap of ₹9,055 crores at CMP ₹794, OPL now finds itself rubbing shoulders with Cummins, Elgi, and Shakti Pumps in the industrial pumps WhatsApp group—though most competitors probably suspect Oswal brought subsidy coupons to the fight.
What’s the catch? Well, it’s a subsidy-driven model with160 debtor daysandworking capital stretching like yoga at 6 a.m.But with revenues growing at88.6%and profits at182%, nobody cares—yet.
3. Business Model (WTF Do They Even Do?)
Let’s decode the Oswal playbook.
- Core Business:Manufacturesolar-powered and grid-connected pumps, induction & submersible motors, and solar modules—all under the ‘Oswal’ brand.
- Turnkey Execution:They don’t just sell pumps; they sell entiresolar pumping systemsunder PM-Kusum. Think of it as Uber for irrigation—hardware plus service.
- Vertical Integration:Unlike Shakti Pumps, which imports parts like a kid copying homework, Oswal makes stainless steel & cast iron pumps, motors, and solar modules in-house at its41,000+ sq. m Karnal facility.
- Revenue Mix:
- 66.6% from turnkey solar pumping (submersibles)
- 11.9% from turnkey solar monoblocks
- 4.4% solar submersibles
- 1.2% solar monoblocks
- 4.5% electric motors
- 7.2% “others” (translation: whatever they could bill)
Translation:87% of revenue comes from one scheme (PM-Kusum).If GoI sneezes, Oswal catches pneumonia.
- Upcoming Products:Helical rotor pumps, centrifugal pumps, progressive cavity pumps. In
- short: anything with a motor, a rotor, and a chance to bill the government.
4. Financials Overview
Quarterly Results Comparison
| Metric | Jun 2025 | Jun 2024 | Mar 2025 | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 514 | 376 | 365 | 36.8% | 40.8% |
| EBITDA (₹ Cr) | 141 | 101 | 99 | 39.6% | 42.4% |
| PAT (₹ Cr) | 95 | 71 | 64 | 34.2% | 48.4% |
| EPS (₹) | 8.31 | 12.06* | 6.42 | -31.1% | 29.5% |
*EPS YoY looks distorted due to equity base jump post-IPO.
Annualised EPS = ₹8.31 × 4 = ₹33.2 → At CMP ₹794,P/E ≈ 23.9(not Screener’s 32).
Commentary:Revenue is gushing like monsoon rivers, margins are holding above 27%, but EPS math got drunk after the IPO dilution. Still, investors are treating Oswal like Virat Kohli—every innings is expected to be a century.
5. Valuation (Fair Value RANGE only)
- P/E Method:Annualised EPS ₹33.2. Industry P/E ~42. Let’s slap 25–35×.
- Range = ₹830 – ₹1,160.
- EV/EBITDA:EV ₹9,378 Cr / FY25 EBITDA ₹420 Cr = 22.3×. Industry median ~17–25×.
- Range = ₹750 – ₹1,050.
- DCF (Back-of-Envelope):Assume 20% CAGR profits for 5 years, 12% discount rate.
- Fair Value Range = ₹800 – ₹1,200.
👉Overall FV Range: ₹800 – ₹1,160.
Disclaimer: This FV range is for educational purposes only and is not investment advice.
6. What’s Cooking – News, Triggers, Drama
- Fresh IPO:₹1,387 Cr raised, with ₹897 Cr going into capex (hello, 1,500 MW solar module expansion).
- Mega Orders:August 2025 – Won ₹442 Cr order for 14,787 solar pumps under PM-Kusum B in Maharashtra. If you’re wondering why farmers in Jalgaon suddenly look cheerful—it’s Oswal.
- Order Book Visibility:11,699 pumps
