Om Metal’s ambitious infra projects strain cash flows

October 18, 2011

Rajasthan-based Om Metal Infraprojects (OMIL) is trying to move up the value chain from being a niche engineering player to an infrastructure major using real estate as a stepping stone. The hurdles it is facing in this transition process have kept the scrip out of the market’s radar for quite a long time. However, as its real estate projects gain momentum from the second half of FY12 onwards, retail investors would do well to keep this scrip in their line of vision.

OMIL controls a 55% market share in hydro-mechanical projects for dams and irrigation projects in India. This mainly involves designing, fabricating and installing floodgates and related mechanical set up for a smooth functioning. It is at present carrying an unexecuted order book of Rs 550 crore.