EMS (EMSLIMITED)
TurnaroundFairStock Score: 18/100 — RISKY
Score breakdown: P/E: 2/3 · ROCE: 2/2 · Growth: 0/2 · Dividend: 0/1
Key Financials
| Current Price | ₹362.7 |
| Market Cap | ₹2,014.1 Cr |
| P/E Ratio | 22.27 |
| ROCE | 26.91% |
| ROE | 14.8% |
| Dividend Yield | 0.41% |
| Profit Growth | -59.1% |
| Debt/Equity | 0.15 |
| Sales Growth | -33.3% |
| Promoter Holding | 69.7% |
| 52-Week Range | ₹256.05 — ₹589.9 |
| Sector | Other Utilities |
| Book Value | ₹190.06 |
Strengths
- Low leverage: Debt/Equity of 0.16 provides balance-sheet cushion.
- Historical capital efficiency: ROCE of 26.91% and ROE of 14.80% are respectable.
- High promoter holding of 69.70% aligns owners with public shareholders.
- Latest quarter remains profitable: ₹19 Cr net profit on ₹200 Cr sales.
Concerns
- Sharp deterioration: Sales down 18.32% and profits down 62.71%.
- Weak Piotroski score of 3/9 suggests financial health is worsening.
- Valuation is not obviously cheap: P/B of 2.30, and annualising latest-quarter profit implies a forward P/E well above the trailing 12.19.
- Low dividend yield of 0.52% offers little downside support.
AI Analysis
Let me first look at the scoreboard: EMS has had a horrible year, with sales down 18.32% and profit down 62.71%. As an investor, I ask whether this is a temporary stumble or a damaged franchise. Waste management is a necessary business in India, but necessity does not equal a moat. The company carries modest debt, with debt-to-equity of only 0.16, and historically it has earned an ROCE of 26.91% and an ROE of 14.80%. Those are respectable numbers, and promoter holding of 69.70% suggests owners remain aligned with public shareholders. But the recent numbers trouble me. The Piotroski score is 3 out of 9, a clear warning on financial health. Revenue is falling. The latest quarter shows sales of ₹200 crore and net profit of ₹19 crore. If I annualise that profit, I get roughly ₹76 crore; against the ₹1,603 crore market cap, the forward P/E is above 21, not the trailing 12.19 that appears cheap. A low P/E can be a trap when earnings are shrinking. Book value is ₹159.31, so the stock trades at 2.3 times book. That is not a deep value buy in the Graham style unless I find a solid margin of safety after accounting for the decline. I do not see a wide moat here; waste management can be contract-driven and lumpy. The 52-week range of ₹256.05 to ₹593.85 shows how uncertain the market is. I would not buy simply because the stock has fallen. I need evidence that the sales decline is stabilising and that margins are holding. FairStock Score of 18/100 labels this risky. Until the business demonstrates recovery, I treat EMS as a speculative turnaround candidate, not a compounder.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer