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INVESTMENT INSIGHTS

Check Before You Invest : HM Electro Mech Ltd

BSE: 544349 NSE: ISIN: INE0DZD01015
  |   Sector:  Construction & Infrastructure   |   Industry:  Engineering - Construction

Snapshot

Q.1 Which industry/sub-sector does HM Electro Mech Ltd belong to?
HM Electro Mech Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.
Q.2 Is HM Electro Mech Ltd a good quality company?
HM Electro Mech Ltd is a quality company, based on a 10 year financial track record.
Q.3 Is HM Electro Mech Ltd undervalued or overvalued?
HM Electro Mech Ltd appears Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is HM Electro Mech Ltd a good buy now?
HM Electro Mech 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 HM Electro Mech Ltd?
HM Electro Mech Ltd revenue growth is 4% for FY-2025 , which is above its 5 year CAGR of 0% , indicating faster growth.
Q.2 Gross Profit margin of HM Electro Mech Ltd?
HM Electro Mech Ltd Gross profit margin which is the profit after deduction of direct costs, is 9.5% for FY-2025 , which is above its 5 year median of 8.1% , indicating increasing margins.
Q.3 Operating Profit Margin of HM Electro Mech Ltd?
HM Electro Mech Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 10.61% for FY-2025 , which is above its 5 year median of 8.78% indicating increasing margins.
Q.4 Net Profit Margin of HM Electro Mech Ltd?
HM Electro Mech Ltd Net Profit Margin is 6.86% for FY-2025 , is above with its 5 year median of 5.92%, indicating increasing margins.
Current Level Historic Median
Gross Profit Margin 9.5 8.1
Operating Profit Margin 10.61 8.78
Net Profit Margin 6.86 5.92
Q.5 Return on Asset of HM Electro Mech Ltd?
HM Electro Mech Ltd Return on Asset is 9.7(x), which is in line with its 5 year historical median of 9.7(x), indicating stable asset utilization efficiency.
Q.6 Return on Equity (ROE) of HM Electro Mech Ltd?
HM Electro Mech Ltd Return on equity is 17.12% for FY-2025 , which is in line with its historical median of 17.12%, indicating the business is making similar use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of HM Electro Mech Ltd?
HM Electro Mech Ltd Return on capital employed is 22.43% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 14%, indicating value creation.
Q.8 Cash conversion cycle of HM Electro Mech Ltd?
HM Electro Mech Ltd Cash conversion cycle is 106 , above its historical median of 24 , indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 1.41 1.63
ROE 17.12 17.12
ROCE 22.43 22.43
Cash Conversion Cycle 106 24
Q.9 Debt to Equity ratio of HM Electro Mech Ltd?
HM Electro Mech Ltd Debt-to-Equity ratio is 0.12 , which is lower with the industry average of 0.38 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of HM Electro Mech Ltd?
HM Electro Mech Ltd Debt to cash flow from operations is -1.35 , which is at a unhealthy level, indicating the business is not able to service its debt comfortably.

Ownership & governance

Q.1 Promoter shareholding and pledge status of HM Electro Mech Ltd?
Promoters hold 73.07% of the HM Electro Mech Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of HM Electro Mech Ltd vs industry peers?
HM Electro Mech Ltd revenue CAGR is 0.00% , compared to the industry median CAGR of 0% , indicating slower growth and losing its market share.
Profit Metrics
Current Level Industry Median
Revenue 121.7 103.6
Gross Profit 11.6 5.2
Operating Profit 12.9 6
Net Profit 8.4 2.6
Operating Efficiency
Current Level Industry Median
Asset Turnover 1.41 0.63
ROE 17.12 6.64
ROCE 22.43 11.13
Cash Conversion Cycle 106.08 51

Valuation & price assessment

Q.1 Stock return of HM Electro Mech Ltd over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 0% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - - - -35.7%
Q.3 Valuation ratios of HM Electro Mech Ltd vs historical?
The current P/E is lower that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 7.38 11.15 27.03
Price to Book 0.94 1.55 1.70
Price to Sales 0.51 7.91 1.45
EV to EBITDA 5.04 0.00 11.36

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