Check Before You Invest : Emerald Leisures Ltd

Snapshot

Q.1 Which industry/sub-sector does Emerald Leisures Ltd belong to?

Emerald Leisures Ltd belongs to the Travel & Hospitality sector, operating specifically within the Hotel, Resort & Restaurants segment.

Q.2 Is Emerald Leisures Ltd a good quality company?

Emerald Leisures Ltd is a weak quality company, based on a inconsistent 10-year financial track record.

Q.3 Is Emerald Leisures Ltd undervalued or overvalued?

Emerald Leisures Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Emerald Leisures Ltd a good buy now?

Emerald Leisures Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Emerald Leisures Ltd?

Emerald Leisures Ltd revenue growth is -5% for FY-2025, which is below its 5-year CAGR of 2.56%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Emerald Leisures Ltd?

Emerald Leisures Ltd Return on capital employed is 10.7% for FY-2025, which is in line with its 5-year historical median of 10.7%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Emerald Leisures Ltd?

Emerald Leisures Ltd Return on Asset is -13.91%, which is in line with its 5-year historical median of -14.08%, indicating stable asset utilization efficiency.

Q.4 Cash conversion cycle of Emerald Leisures Ltd?

Emerald Leisures Ltd Cash conversion cycle is 239 days, above its 5-year historical median of 17 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

Q.5 Gross Profit margin of Emerald Leisures Ltd?

Emerald Leisures Ltd Gross profit margin which is the profit after deduction of direct costs, is -57.4% for FY-2025, which is in line with its 5-year median of -57.4%, indicating stable margins.

Q.6 Operating Profit Margin of Emerald Leisures Ltd?

Emerald Leisures Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 29.68% for FY-2025, which is in line with its 5-year median of 29.68% indicating stable margins.

Q.7 Net Profit Margin of Emerald Leisures Ltd?

Emerald Leisures Ltd Net Profit Margin is -71.97% for FY-2025, is in line with with its 5-year median of -71.97%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin	-57.4	-57.4
Operating Profit Margin	29.68	29.68
Net Profit Margin	-71.97	-71.97

Q.8 Debt to Equity ratio of Emerald Leisures Ltd?

Emerald Leisures Ltd Debt-to-Equity ratio is -1.31, which is lower with the industry average of 0.21, indicating lower debt levels in the industry.

Q.9 Debt to cash flow from operations of Emerald Leisures Ltd?

Emerald Leisures Ltd Debt to cash flow from operations is -7.52, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Emerald Leisures Ltd?

Promoters hold 73.76% of the Emerald Leisures Ltd, with 18.72% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Emerald Leisures Ltd vs industry peers?

Emerald Leisures Ltd revenue CAGR is 2.56%, compared to the industry median CAGR of 7.44%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-5	7.4
Gross Profit Growth	0	14.7
Operating Profit Growth	-33.3	14.7
Net Profit Growth	0	18.8

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.19	0.32
ROE	-	4.28
ROCE	10.7	6.32
Cash Conversion Cycle (days)	238.72	-1

Valuation & price assessment

Q.1 Stock return of Emerald Leisures Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 28.6% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	28.6%	55.3%	88.1%	5.7%

Q.3 Valuation ratios of Emerald Leisures Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	-	-34.04	32.23
Price to Book	-2.51	-0.65	1.82
Price to Sales	18.31	6.50	5.80
EV to EBITDA	81.48	67.37	17.27

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