Emmvee Photovol. (EMMVEE)
Fast GrowerFairStock Score: 55/100 — STEADY
Score breakdown: P/E: 1/3 · ROCE: 2/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹321.5 |
| Market Cap | ₹22,258.89 Cr |
| P/E Ratio | 17.48 |
| ROCE | 28.01% |
| ROE | —% |
| Dividend Yield | 0% |
| Profit Growth | 73.7% |
| Debt/Equity | 0.1 |
| Sales Growth | 51.3% |
| Free Cash Flow | ₹-372 Cr |
| Promoter Holding | 80.03% |
| 52-Week Range | ₹171.51 — ₹371.45 |
| Sector | Electrical Equipment |
| Book Value | ₹53.39 |
Strengths
- Exceptional growth: sales up 118.11%, profit up 165.77%, and 5-year revenue CAGR of 40.68%.
- Strong capital efficiency with ROCE of 28.01%.
- Piotroski F-Score of 7/9 indicates solid overall financial health.
- Promoter holding of 80.03% aligns management with minority shareholders.
Concerns
- High leverage: debt/equity of 2.15 and negative free cash flow of ₹-372 Cr suggest growth is funded by borrowing.
- Near 23% latest-quarter net margin may not be sustainable in a competitive equipment industry.
- Valuation offers little margin of safety: P/E 25.34, P/B 14.82, book value only ₹18.50 versus price ₹274.20.
- Zero dividend yield means minority shareholders depend entirely on future capital gains.
AI Analysis
Let me look at Emmvee the way I would any business. The growth numbers jump off the page: sales up 118%, profit up 166%, and a five-year revenue CAGR of over 40%. If a business can compound like that while earning 28% on capital employed, it deserves attention. But attention is not the same as investment. The balance sheet bothers me. Debt to equity of 2.15 and free cash flow of minus ₹372 crore tell me that this growth is being funded, not generating excess cash. In my experience, high growth that consumes cash can turn into trouble when the music stops. The latest quarter showed ₹1,152 crore of sales and ₹264 crore of net profit, a margin close to 23%. For an electrical equipment manufacturer, that is a remarkable number, and I would want to know exactly where those profits come from and whether they can survive competition. The price is ₹274 versus book value of only ₹18.50, so we are paying roughly 15 times book and 25 times earnings. The low PEG ratio of 0.18 only works if the hypergrowth continues. Graham would say the margin of safety is thin. On the positive side, promoters own 80%, and the Piotroski score of 7 out of 9 suggests decent financial health. Dividend yield is zero, so the only return is future price appreciation. FairStock’s 55/100 score also tempers my enthusiasm. This is a fast grower, but I would wait for better cash conversion and lower leverage before treating it as a permanent holding.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer