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Check Before You Invest : EPW India Ltd

BSE: 0 NSE: EPWINDIA ISIN: INE1KEC01023
  |   Sector:  Miscellaneous   |   Industry:  Trading

Snapshot

Q.1 Which industry/sub-sector does EPW India Ltd belong to?
EPW India Ltd belongs to the Miscellaneous sector, operating specifically within the Trading segment.
Q.2 Is EPW India Ltd a good quality company?
EPW India 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 EPW India Ltd undervalued or overvalued?
EPW India 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 40.81 32.33
Price to Book 15.73 12.22
Price to Sales 3.25 2.58
EV to EBITDA 30.19 24.31
Q.4 Is EPW India Ltd a good buy now?
EPW India 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.

Q.1 Gross Profit margin of EPW India Ltd?
EPW India Ltd Gross profit margin which is the profit after deduction of direct costs, is 11.2% for FY-2025, which is above its 3-year median of 5.6%, indicating increasing margins.

Q.2 Operating Profit Margin of EPW India Ltd?
EPW India Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 11.43% for FY-2025, which is above its 3-year median of 5.54% indicating increasing margins.

Q.3 Net Profit Margin of EPW India Ltd?
EPW India Ltd Net Profit Margin is 7.97% for FY-2025, is above its 3-year median of 4%, indicating increasing margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 11.2 5.6
Operating Profit Margin (%) 11.43 5.54
Net Profit Margin (%) 7.97 4

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of EPW India Ltd?
EPW India Ltd Return on Asset is 25.08%, which is above its 3-year historical median of 10.33%, indicating improved asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of EPW India Ltd?
EPW India Ltd Return on capital employed is 63.73% for FY-2025, which is in line with its 3-year historical median of 63.73%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.6 Return on Equity (ROE) of EPW India Ltd?
EPW India Ltd Return on equity is 137.15% for FY-2025, which is above its 3-year historical median of 128.42%, indicating the business is making better use of its shareholders capital.

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

Q.7 Debt to Equity ratio of EPW India Ltd?
EPW India Ltd Debt-to-Equity ratio is 2.40, which is above the industry average of 0.03, indicating higher debt levels in the industry.

Q.8 Debt to cash flow from operations of EPW India Ltd?
EPW India Ltd Debt to cash flow from operations is -1.11, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of EPW India Ltd?

Q.1 Promoter shareholding and pledge status of EPW India Ltd?
Promoters hold 71.43% of the EPW India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does EPW India Ltd performance compare with that of its Peers?

Q.1 Revenue growth of EPW India Ltd vs industry peers?
EPW India Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 4.99%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) - 5
Gross Profit Growth (%) 500 17.6
Operating Profit Growth (%) 500 21
Net Profit Growth (%) 300 19
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 3.15 0.66
ROE (%) 137.15 2.9
ROCE (%) 63.73 4.31
Cash Conversion Cycle (days) 67.09 49

Valuation & price assessment

Q.1 Stock return of EPW India 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 EPW India Ltd vs historical?
The current P/E ratio of 40.81 is higher than its historical median of 32.33, 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 40.81 32.33 35.02
Price to Book 15.73 12.22 1.68
Price to Sales 3.25 2.58 2.16
EV to EBITDA 30.19 24.31 15.51

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