India has been experiencing a spectacular rise in its unlisted equity market because it has provided investors with the opportunity to access high-potential companies before their listing. Having a consolidated market cap of more than 1 lakh crore in various industries, it is a singular possibility to sail into India, into its next growth stories. One such attractive company is Orbis Financial Corporation Limited (OFCL)- a financial services company that acts in the important back-end manner of the Indian capital market.
Orbis is currently worth 6,772.6 crores in the non-listed business and has become a force to reckon with in specialised areas such as custodial services, fund accounting, FPI registration and so on. It is a service-based business model with a stable revenue base and a high rate of returns on equity, thus making it a safe bet on the financial infrastructure business.
About Orbis And Its Business Model
Orbis Financial Corporation Limited (OFCL) in FY2009, as a SEBI-certified custodian of securities and clearing in all market segments, started operations. It has, over time, varied its services as it deals with:
- Custodial and Fund Accounting Services
- Professional Clearing and Depository Services
- Services of Share Transfer
- Trustee Services (through wholly-owned subsidiary: Orbis Trusteeship Services Pvt Ltd)
- FPI Registration and Regulatory Service
The institutional investors that constitute the company majorly include the FPIs, the PMSs, the AIFs, the DIIs, the FDIs and the Trading Members (TMs). FY2019 also witnessed the granting of Registrar & Transfer Agent (RTA) and Trustee Services license to Orbis, further cementing its presence in the Indian capital markets.
Share Price and Financial Analysis
Under the unlisted market, Orbis shares have been trading between 520-550 per share due to robust fundamentals and stable performance. Though the company is in a niche business, its P/E ratio is around 45, and that of Book Value per share is 56.5, reflecting a capital-light approach coupled with a service-driven business.
The ratio of ROE and dividends provided in an unlisted stock category is also favourable, which indicates the financial power of finances of the company and the friendly policies of the company towards the shareholders of Orbis.
Over the past three years, Orbis generated 125% annualised revenues and has had a threefold gain in net profit. The EBITDA margin is still healthy at ~59%, which is an indicator of high efficiency of business operations and pricing strength.
Balance Sheet & Cash Flow Summary (2024)
- Cash & Cash Equivalents : ₹5,998 Mn
- Total Assets: ₹49,847 Mn
- Reserves: ₹5,665 Mn
- Total Equity: ₹6,882 Mn
- Operating Cash Flow: ₹228 Mn
- Net Cash Flow: ₹1,162 Mn
Although another two years, FY2024 indicate conservative operating cash flow, the balance sheet is still strong, with no lack of liquidity, and a small amount of long-term debt. The positive net investing cash flow of the company also reflects that the large-scale CAPEX projects are completed, and efficiency is in the centre of attention.
Conclusion
Orbis Financial Corporation Limited is more than a new brand name in the unlisted space; it is a silent compounding business. Orbis Unlisted Shares have given high-return measures, an increase in revenue, stable dividend payouts, and an intense place in the financial fabrics of India, which is an excellent long-term investment vehicle.
It’s a well-regulated business, customer stickiness, and regulatory credentials make it a future-proof participant in the financial services backend, an arena that many tend to ignore but whose stability is a vital ingredient to capital markets.