Is Now The Time To Put Omfurn India (NSE:OMFURN) On Your Watchlist?

Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks' without any revenue, let alone profit. Sometimes these stories can cloud the minds of investors, leading them to invest with their emotions rather than on the merit of good company fundamentals. Loss-making companies are always racing against time to reach financial sustainability, so investors in these companies may be taking on more risk than they should.

So if this idea of high risk and high reward doesn't suit, you might be more interested in profitable, growing companies, like Omfurn India (NSE:OMFURN). Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Omfurn India with the means to add long-term value to shareholders.

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How Fast Is Omfurn India Growing Its Earnings Per Share?

Over the last three years, Omfurn India has grown earnings per share (EPS) at as impressive rate from a relatively low point, resulting in a three year percentage growth rate that isn't particularly indicative of expected future performance. So it would be better to isolate the growth rate over the last year for our analysis. It's good to see that Omfurn India's EPS has grown from ₹4.45 to ₹5.46 over twelve months. This amounts to a 23% gain; a figure that shareholders will be pleased to see.

Top-line growth is a great indicator that growth is sustainable, and combined with a high earnings before interest and taxation (EBIT) margin, it's a great way for a company to maintain a competitive advantage in the market. The good news is that Omfurn India is growing revenues, and EBIT margins improved by 2.9 percentage points to 11%, over the last year. Ticking those two boxes is a good sign of growth, in our book.

In the chart below, you can see how the company has grown earnings and revenue, over time. For finer detail, click on the image.

Check out our latest analysis for Omfurn India

Omfurn India isn't a huge company, given its market capitalisation of ₹1.1b. That makes it extra important to check on its balance sheet strength.

Are Omfurn India Insiders Aligned With All Shareholders?

Insider interest in a company always sparks a bit of intrigue and many investors are on the lookout for companies where insiders are putting their money where their mouth is. This view is based on the possibility that stock purchases signal bullishness on behalf of the buyer. However, insiders are sometimes wrong, and we don't know the exact thinking behind their acquisitions.

One positive for Omfurn India, is that company insiders spent ₹1.2m acquiring shares in the last year. While this investment may be modest, it is great considering the lack of insider selling. Zooming in, we can see that the biggest insider purchase was by Promoter Rajendra Vishwakarma for ₹211k worth of shares, at about ₹88.11 per share.

It's commendable to see that insiders have been buying shares in Omfurn India, but there is more evidence of shareholder friendly management. Namely, Omfurn India has a very reasonable level of CEO pay. The median total compensation for CEOs of companies similar in size to Omfurn India, with market caps under ₹18b is around ₹4.1m.

Omfurn India's CEO only received compensation totalling ₹2.7m in the year to March 2025. This total may indicate that the CEO is sacrificing take home pay for performance-based benefits, ensuring that their motivations are synonymous with strong company results. CEO compensation is hardly the most important aspect of a company to consider, but when it's reasonable, that gives a little more confidence that leadership are looking out for shareholder interests. It can also be a sign of good governance, more generally.

Is Omfurn India Worth Keeping An Eye On?

One important encouraging feature of Omfurn India is that it is growing profits. And there's more to Omfurn India, with the insider buying and modest CEO pay being a great look for those with an eye on the company. If these factors aren't enough to secure Omfurn India a spot on the watchlist, then it certainly warrants a closer look at the very least. We should say that we've discovered 2 warning signs for Omfurn India (1 is a bit unpleasant!) that you should be aware of before investing here.

The good news is that Omfurn India is not the only stock with insider buying. Here's a list of small cap, undervalued companies in IN with insider buying in the last three months!

Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.