Electronics Mart (EMIL)

FairStock Score: 26/100 — RISKY

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

Strengths

• Promoter holding of 65.17% signals strong owner alignment.
• Sales still grew 7.46% year-on-year, showing the franchise can expand in a tough consumer environment.
• Latest quarter generated ₹1,940 crore of revenue, indicating meaningful scale in electronics retail.
• Book value of ₹38.40 per share provides some tangible asset backing, though not enough at the current price.

Concerns

• P/E of 42 and PEG of 5.63 are expensive relative to profit growth of -3.40%.
• ROE of 6.73% and ROCE of 10.35% are weak, while debt/equity of 1.26 increases financial risk.
• Zero dividend means shareholders get no cash return while waiting for uncertain growth.
• Piotroski F-Score of 4 out of 9 points to weak underlying financial health.

AI Analysis

Let me examine Electronics Mart the way I would any business — through earnings power and balance sheet strength, not price charts. At ₹107, the market capitalizes EMIL at ₹3,866 crore. For that, I get a trailing P/E of 42 and a P/B of 2.79, while the company earns only 6.73% on equity and 10.35% on capital employed. That is a mediocre shopkeeper return, made worse by debt at 1.26 times equity. A leveraged retailer earning sub-7% ROE has little room for error, and Mr. Graham would insist on a margin of safety that simply isn't there. Sales grew 7.46%, so the top line is moving, but profits fell 3.40%. The latest quarter's net profit of ₹30 crore on sales of ₹1,940 crore is only about 1.5% net margin. The Piotroski score of 4 out of 9 reinforces my caution: profitability, leverage, and efficiency are all shaky. With zero dividend, there is no cash return while I wait. Promoter holding of 65.17% is good — families with skin in the game usually behave better — but ownership alone doesn't create a moat. Electronics retail faces intense competition, and a stock that fell from ₹196.85 to ₹107 is telling me that expectations are cooling. A P/E of 42 combined with negative profit growth gives a PEG of 5.63. That is a premium price for below-average economics. I see a cyclical, capital-hungry business, not a compounding machine. I will pass unless the price falls far enough to offer real asset protection and a much higher earnings yield.

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