Omaxe shares climbed 8% during Tuesday's session, hitting an intraday high of ₹98.37 apiece. According to latest trading data, the stock opened at ₹90.53 and reached a low of ₹90.02, with the average traded price for the day at ₹96.34. The rally extends the stock's recent momentum, with Omaxe gaining around 24% over the past month and 20% so far this year. However, the stock remains about 15% below its 50-day moving average of ₹110, which it hit last year on July 18. Technical indicators show the stock is in an uptrend with the 50 DMA at ₹79.84 and 200 DMA at ₹77.31.
The latest optimism follows the company's announcement on June 29 that it will enter the hospitality business through a dedicated vertical. As reported by CNBC TV18, Omaxe plans to invest ₹6,200 crore over the next four to five years to develop 19 hotels spanning around 5 million square feet across five states. The company expects the hospitality portfolio to generate approximately ₹1,000 crore in annual revenue once stabilised, expanding its presence to 13 cities.
Despite the expansion plans, Omaxe's financial position continues to warrant close attention. According to reports from CNBC TV18, the company's free cash flow declined sharply to ₹186 crore in FY26, compared with ₹999 crore in FY25. Total borrowings nearly doubled to ₹1,466 crore from ₹744 crore a year earlier, while the company's reserves slipped deeper into negative territory at ₹1,084 crore, compared with negative ₹388 crore in FY25. Interest coverage stayed negative at 1.4 times in FY26, highlighting continued earnings pressure relative to finance costs.
The company has attracted investor interest through strategic capital raising. As reported by CNBC TV18, in May, WSB invested ₹75 crore in the Omaxe Group to support its expansion into Tier-II markets. Despite the recent rally, Omaxe continues to carry significant legacy challenges, including regulatory scrutiny over the years and multiple complaints before RERA and consumer forums over project delays and construction quality.
The company has faced regulatory scrutiny over the years, including a SEBI order barring the company and its Chairman and Managing Director from the securities market for two years over alleged irregularities in its financial statements. Credit rating agency CareEdge had also highlighted liquidity concerns, citing declining collections, higher dependence on debt funding and adverse regulatory orders. Its long-term bank facility ratings were subsequently withdrawn. Additionally, Omaxe does not provide regular operational disclosures such as bookings, sales volumes or collections, making it harder to track business momentum quarter-on-quarter.
