Empire Inds. (509525)

FairStock Score: 30/100 — RISKY

Score breakdown: P/E: 2/3 · ROCE: 1/2 · Growth: 1/2 · Dividend: 1/1

Key Financials

Strengths

• Reasonable valuation with P/E of 14.62 and dividend yield of 2.77%
• Piotroski F-Score of 7/9 suggests solid financial health
• Positive sales growth of 7.49% and stable latest quarter revenue of ₹189 Cr
• Book value of ₹524.59 provides asset backing at 2.04 P/B
• ROE of 12.11% and ROCE of 14.36% show acceptable capital efficiency

Concerns

• Profit growth is nearly flat at 0.57%, and PEG of 2.54 indicates valuation is not supported by earnings growth
• FairStock Score of 35/100 reflects a mixed fundamental picture
• Diversified nature of business provides no clear moat or pricing power from the available data
• P/B of 2.04 leaves limited margin of safety for a small-cap

AI Analysis

At ₹1,071.45, Empire Inds. is a ₹643 crore small-cap with a mixed value profile. The stock sells at 14.62 times earnings and 2.04 times book, with a 2.77% dividend yield. That is not a Graham-style bargain; it is a fair price for a mediocre compounder. Book value per share is ₹524.59, so the market is asking a meaningful premium for the franchise. Returns are acceptable—ROE at 12.11% and ROCE at 14.36%—but hardly indicate a wide moat. A diversified label often means no single dominant business, and the numbers do not reveal pricing power or a clear competitive edge. The Piotroski F-Score of 7 out of 9 is reassuring on financial health, and sales growth of 7.49% shows the business is not shrinking. The problem is the bottom line: profit growth is only 0.57%. Revenue is expanding, but almost none of it is reaching shareholders as incremental profit. With a PEG of 2.54, the market is paying a growth premium that the company is not delivering. The latest quarter, with sales of ₹189 crore and net profit of ₹11 crore, does not change that picture. For a value investor, the margin of safety is thin. The 2.77% dividend cushions the wait, and a 7/9 Piotroski score reduces financial distress risk, but a 35/100 FairStock score reminds me that this is a mixed situation. I would classify Empire Inds. as a slow grower. I would not chase it here. I'd want a lower price—closer to book or a P/E under 12—or clear proof that profit growth can match sales growth before buying.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer