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Check Before You Invest : Emmvee Photovoltaic Power Ltd

BSE: 544608 NSE: EMMVEE ISIN: INE1C6T01020
  |   Sector:  Capital Goods & Industrial Consumables   |   Industry:  Electric Equipment

Snapshot

Q.1 Which industry/sub-sector does Emmvee Photovoltaic Power Ltd belong to?
Emmvee Photovoltaic Power Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Electric Equipment segment.
Q.2 Is Emmvee Photovoltaic Power Ltd a good quality company?
Emmvee Photovoltaic Power Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Emmvee Photovoltaic Power Ltd undervalued or overvalued?
Emmvee Photovoltaic Power Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 3-year
Historic Median
Price to Earnings 116.09 90.90
Price to Book 6.75 5.45
Price to Sales 16.83 8.35
EV to EBITDA 73.93 50.97
Q.4 Is Emmvee Photovoltaic Power Ltd a good buy now?
Emmvee Photovoltaic Power Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Emmvee Photovoltaic Power Ltd?
Emmvee Photovoltaic Power Ltd revenue growth is 43.2% for FY-2025, which is below its 3-year CAGR of 51.39%, indicating slower growth.

Q.2 Gross Profit margin of Emmvee Photovoltaic Power Ltd?
Emmvee Photovoltaic Power Ltd Gross profit margin which is the profit after deduction of direct costs, is 15% for FY-2025, which is above its 3-year median of 13.3%, indicating increasing margins.

Q.3 Operating Profit Margin of Emmvee Photovoltaic Power Ltd?
Emmvee Photovoltaic Power Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.79% for FY-2025, which is above its 3-year median of 13.55% indicating increasing margins.

Q.4 Net Profit Margin of Emmvee Photovoltaic Power Ltd?
Emmvee Photovoltaic Power Ltd Net Profit Margin is 9.18% for FY-2025, is above its 3-year median of 7.6%, indicating increasing margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 15 13.3
Operating Profit Margin (%) 14.79 13.55
Net Profit Margin (%) 9.18 7.6

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Emmvee Photovoltaic Power Ltd?
Emmvee Photovoltaic Power Ltd Return on Asset is 15%, which is above its 3-year historical median of 11.02%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Emmvee Photovoltaic Power Ltd?
Emmvee Photovoltaic Power Ltd Return on capital employed is 40.03% for FY-2025, which is above its 3-year historical median of 29%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 13.5%, indicating value creation.

Q.7 Return on Equity (ROE) of Emmvee Photovoltaic Power Ltd?
Emmvee Photovoltaic Power Ltd Return on equity is 44.66% for FY-2025, which is above its 3-year historical median of 38.31%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Emmvee Photovoltaic Power Ltd?
Emmvee Photovoltaic Power Ltd Cash conversion cycle is 40 days, below its 3-year historical median of 51 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 3-year
Historic Median
Asset Turnover (x) 1.63 1.45
ROE (%) 44.66 38.31
ROCE (%) 40.03 29
Cash Conversion Cycle 40 days 51 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Emmvee Photovoltaic Power Ltd?
Emmvee Photovoltaic Power Ltd Debt-to-Equity ratio is 0.37, which is above the industry average of 0.29, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Emmvee Photovoltaic Power Ltd?
Emmvee Photovoltaic Power Ltd Debt to cash flow from operations is 0.47, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Emmvee Photovoltaic Power Ltd?

Q.1 Promoter shareholding and pledge status of Emmvee Photovoltaic Power Ltd?
Promoters hold 80.03% of the Emmvee Photovoltaic Power Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Emmvee Photovoltaic Power Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Emmvee Photovoltaic Power Ltd vs industry peers?
Emmvee Photovoltaic Power Ltd revenue CAGR is 51.39%, compared to the industry median CAGR of 24.05%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) 43.2 24.1
Gross Profit Growth (%) 61 39.5
Operating Profit Growth (%) 57.2 42.8
Net Profit Growth (%) 72.3 44.2
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 1.63 1.18
ROE (%) 44.66 14.12
ROCE (%) 40.03 17.12
Cash Conversion Cycle (days) 39.68 85

Valuation & price assessment

Q.1 Stock return of Emmvee Photovoltaic Power Ltd over the last decade?
Over the last - year(s), the stock has delivered a CAGR of N/A% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -
Q.2 Valuation ratios of Emmvee Photovoltaic Power Ltd vs historical?
The current P/E ratio of 116.09 is higher than its historical median of 90.90, indicating that the stock is trading above its historical average valuation.
Q.3 How do the current valuation ratios compare with 3-year historical median and industry numbers?
Valuation Ratios Current 3-year
Historic Median
3-year
Industry Median
Price to Earnings 116.09 90.90 43.78
Price to Book 6.75 5.45 4.74
Price to Sales 16.83 8.35 3.09
EV to EBITDA 73.93 50.97 21.60

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