Check Before You Invest : Emerald Tyre Manufacturers Ltd

Q: Which industry/sub-sector does Emerald Tyre Manufacturers Ltd belong to?

Emerald Tyre Manufacturers Ltd belongs to the Automobiles sector, operating specifically within the Tyres & Allied segment.

Q: Is Emerald Tyre Manufacturers Ltd a good quality company?

Emerald Tyre Manufacturers 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: Is Emerald Tyre Manufacturers Ltd undervalued or overvalued?

Emerald Tyre Manufacturers Ltd appears Undervalued, as its key valuation ratios are lower 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. Price to Earnings, Current: 17.75, Historic Median: 22.35. Price to Book, Current: 1.38, Historic Median: 1.99. Price to Sales, Current: 0.91, Historic Median: 1.29. EV to EBITDA, Current: 8.25, Historic Median: 10.33

Q: Is Emerald Tyre Manufacturers Ltd a good buy now?

Emerald Tyre Manufacturers 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

Q: Gross Profit margin of Emerald Tyre Manufacturers Ltd?

Emerald Tyre Manufacturers Ltd Gross profit margin which is the profit after deduction of direct costs, is 10.5% for FY-2025, which is in line with its 5-year median of 10.5%, indicating stable margins.

Q: Operating Profit Margin of Emerald Tyre Manufacturers Ltd?

Emerald Tyre Manufacturers Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.79% for FY-2025, which is in line with its 5-year median of 13.79% indicating stable margins.

Q: Net Profit Margin of Emerald Tyre Manufacturers Ltd?

Emerald Tyre Manufacturers Ltd Net Profit Margin is 5.13% for FY-2025, is in line with its 5-year median of 5.13%, indicating stable margins. Profitability Metrics. Gross Profit Margin (%), Current: 10.5, Historic Median: 10.5. Operating Profit Margin (%), Current: 13.79, Historic Median: 13.79. Net Profit Margin (%), Current: 5.13, Historic Median: 5.13

Q: Return on Asset of Emerald Tyre Manufacturers Ltd?

Emerald Tyre Manufacturers Ltd Return on Asset is 4.55%, which is in line with its 5-year historical median of 4.55%, indicating stable asset utilization efficiency.

Q: Return on capital employed (ROCE) of Emerald Tyre Manufacturers Ltd?

Emerald Tyre Manufacturers Ltd Return on capital employed is 13% for FY-2025, which is in line with its 5-year historical median of 13%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q: Return on Equity (ROE) of Emerald Tyre Manufacturers Ltd?

Emerald Tyre Manufacturers Ltd Return on equity is 10.01% for FY-2025, which is below its 5-year historical median of 11.87%, indicating the business is making worse use of its shareholders capital.

Check Before You Invest : Emerald Tyre Manufacturers Ltd

Snapshot

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

Emerald Tyre Manufacturers Ltd belongs to the Automobiles sector, operating specifically within the Tyres & Allied segment.

Q.2 Is Emerald Tyre Manufacturers Ltd a good quality company?

Emerald Tyre Manufacturers 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 Emerald Tyre Manufacturers Ltd undervalued or overvalued?

Emerald Tyre Manufacturers Ltd appears Undervalued, as its key valuation ratios are lower 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	5-year Historic Median
Price to Earnings	17.75	22.35
Price to Book	1.38	1.99
Price to Sales	0.91	1.29
EV to EBITDA	8.25	10.33

Q.4 Is Emerald Tyre Manufacturers Ltd a good buy now?

Emerald Tyre Manufacturers 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

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 Emerald Tyre Manufacturers Ltd?

Emerald Tyre Manufacturers Ltd Gross profit margin which is the profit after deduction of direct costs, is 10.5% for FY-2025, which is in line with its 5-year median of 10.5%, indicating stable margins.

Q.2 Operating Profit Margin of Emerald Tyre Manufacturers Ltd?

Emerald Tyre Manufacturers Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 13.79% for FY-2025, which is in line with its 5-year median of 13.79% indicating stable margins.

Q.3 Net Profit Margin of Emerald Tyre Manufacturers Ltd?

Emerald Tyre Manufacturers Ltd Net Profit Margin is 5.13% for FY-2025, is in line with its 5-year median of 5.13%, indicating stable margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	10.5	10.5
Operating Profit Margin (%)	13.79	13.79
Net Profit Margin (%)	5.13	5.13

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Emerald Tyre Manufacturers Ltd?

Emerald Tyre Manufacturers Ltd Return on Asset is 4.55%, which is in line with its 5-year historical median of 4.55%, indicating stable asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Emerald Tyre Manufacturers Ltd?

Emerald Tyre Manufacturers Ltd Return on capital employed is 13% for FY-2025, which is in line with its 5-year historical median of 13%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.6 Return on Equity (ROE) of Emerald Tyre Manufacturers Ltd?

Emerald Tyre Manufacturers Ltd Return on equity is 10.01% for FY-2025, which is below its 5-year historical median of 11.87%, indicating the business is making worse 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 Emerald Tyre Manufacturers Ltd?

Emerald Tyre Manufacturers Ltd Debt-to-Equity ratio is 0.65, which is above the industry average of 0.44, indicating higher debt levels in the industry.

Q.8 Debt to cash flow from operations of Emerald Tyre Manufacturers Ltd?

Emerald Tyre Manufacturers Ltd Debt to cash flow from operations is 23.3, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Emerald Tyre Manufacturers Ltd?

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

Promoters hold 50.31% of the Emerald Tyre Manufacturers Ltd, with 9.59% of their stake pledged, indicating low pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Emerald Tyre Manufacturers Ltd performance compare with that of its Peers?

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

Emerald Tyre Manufacturers Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 9.77%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	-	9.8
Gross Profit Growth (%)	-9.5	15.7
Operating Profit Growth (%)	-10.7	9.3
Net Profit Growth (%)	-30.8	10.8

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.89	1.13
ROE (%)	10.01	10.87
ROCE (%)	13	12.59
Cash Conversion Cycle (days)	154.39	60

Valuation & price assessment

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

Over the last 1 year(s), the stock has delivered a CAGR of -16.26% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-	-	-16.3%

Q.2 Valuation ratios of Emerald Tyre Manufacturers Ltd vs historical?

The current P/E ratio of 17.75 is lower than its historical median of 22.35, indicating that the stock is trading below its historical average valuation.

Q.3 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	17.75	22.35	30.55
Price to Book	1.38	1.99	2.17
Price to Sales	0.91	1.29	1.37
EV to EBITDA	8.25	10.33	11.27

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Check Before You Invest : Emerald Tyre Manufacturers Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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