Hidden Gem: Auto ancillary stock with ₹1,200 Cr order book and strong financials to keep an eye on

Synopsis: This little-known auto ancillary player is stepping into the spotlight with a Rs 1,200 crore order book, 70% plus Q3 revenue growth, rising exports and stronger margins, all signs of a company moving beyond autos and quietly building a long-term manufacturing growth story.

Not all growth stories make headlines. Some quietly build scale, add new customers, and move up the value chain. This auto ancillary company is doing just that, backed by a strong order book, fast-rising revenues, and expansion beyond automobiles into defence, renewables, and exports. For investors who like spotting opportunities early, this is a name that’s starting to stand out.

With the market cap of Rs 748 crore, the shares of OBSC Perfection Ltd are trading at Rs 306. The shares are trading at a PE of 37.4, whereas their industry PE is at 28, and the shares have given a return of 178% since their listing in Oct 2024.

OBSC Perfection is a precision metal component maker with excellence in machine shop work, investment castings, fabrications, and forging. Though it has its stronghold in the automotive industry, it has started expanding swiftly into non-automotive sectors such as defence, shipbuilding, renewable energy, telecommunication, and even medical implants. It has five production facilities set up in Pune and Chennai with the legacy of over 56 years with the Anglian Omega Group, ensuring a raw material advantage as it has backward integration in bright bar steel.

Growth Momentum

Q3 FY26 marked a definite turning point. The company posted its highest ever revenue, and revenue contribution from operations grew by a massive 70.5% YoY in Q3 FY26. What is more, the non-automatic business contribution increased to 16% in 9M FY26, a steep increase from 8.9% in FY25, which reiterates effective diversification outside the auto segment. Defence and marine business scale-up and exports registered a faster growth than the domestic business, indicating enhanced acceptance of their product in foreign markets.

Order Book & Capacity Expansion

Currently, OBSC Perfection boasts an order book of approximately Rs 1,200 crores. The forged products segment contributed 54% in the last 6 months. In Q3 FY26, the company ordered cold forging machines for Rs 12.45 crores, augmenting 6,000 tonnes per annum capacity, in addition to which it also secured its maiden order for medical implants, thus foraying into a new category for the first time. Allocation of land approximately 8.4 acres in the state of Maharashtra aids in its proposed giga factory setup at a single location in the medium-term plan.

Financials

Key highlights of its financial performance point towards effective implementation. In H1 FY26, the company has registered a growth of 32% YoY, 38% YoY growth in EBITDA, and 45% YoY growth in PAT, with an improvement in EBITDA margins and PAT margins, which have expanded to 18% and 11.6%, respectively. On a CAGR basis, for FY22-FY25, it registered a revenue CAGR of 36.8%, an EBITDA CAGR of 53%, and a PAT CAGR of 67%, which clearly states improvement on both growth and leverage fronts. Even with significant capex, the debt-equity ratio remains.

Why This Appears to Be the ‘Hidden Gem’ Venture.

OBSC Perfection offers the ideal mix of revenue strength, increasing export contribution, diversification, and manufacturing expertise. It is, however, surprisingly less researched. With its transition from being an exclusive car parts supplier to becoming an across-industry precision engineering solutions provider, paired with an expanding order book and enhancing ratios, this company is poised for compounding. For investors researching companies associated with niche manufacturing opportunities with the ability to execute, this is the name that is quietly progressing up the value chain.

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