Check Before You Invest : Emkay Taps And Cutting Tools Ltd

Q: Which industry/sub-sector does Emkay Taps And Cutting Tools Ltd belong to?

Emkay Taps And Cutting Tools Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering - Industrial Equipments segment.

Q: Is Emkay Taps And Cutting Tools Ltd a good quality company?

Emkay Taps And Cutting Tools Ltd is a good quality company, based on a consistently good 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 Emkay Taps And Cutting Tools Ltd undervalued or overvalued?

Emkay Taps And Cutting Tools 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: 4.09, Historic Median: 9.23. Price to Book, Current: 0.38, Historic Median: 1.78. Price to Sales, Current: 2.62, Historic Median: 4.67. EV to EBITDA, Current: 3.56, Historic Median: 6.94

Q: Is Emkay Taps And Cutting Tools Ltd a good buy now?

Emkay Taps And Cutting Tools Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of Emkay Taps And Cutting Tools Ltd?

Emkay Taps And Cutting Tools Ltd revenue growth is -59.5% for FY-2025, which is below its 5-year CAGR of -3.75%, indicating slower growth.

Q: Gross Profit margin of Emkay Taps And Cutting Tools Ltd?

Emkay Taps And Cutting Tools Ltd Gross profit margin which is the profit after deduction of direct costs, is 71.7% for FY-2025, which is above its 5-year median of 56.4%, indicating increasing margins.

Q: Operating Profit Margin of Emkay Taps And Cutting Tools Ltd?

Emkay Taps And Cutting Tools Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -55.06% for FY-2025, which is below its 5-year median of 46.54% indicating decreasing margins.

Q: Net Profit Margin of Emkay Taps And Cutting Tools Ltd?

Emkay Taps And Cutting Tools Ltd Net Profit Margin is 64.05% for FY-2025, is above its 5-year median of 49.8%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 71.7, Historic Median: 56.4. Operating Profit Margin (%), Current: -55.06, Historic Median: 46.54. Net Profit Margin (%), Current: 64.05, Historic Median: 49.8

Q: Return on Asset of Emkay Taps And Cutting Tools Ltd?

Emkay Taps And Cutting Tools Ltd Return on Asset is 8.43%, which is below its 5-year historical median of 19.17%, indicating deteriorated asset utilization efficiency.

Q: Return on capital employed (ROCE) of Emkay Taps And Cutting Tools Ltd?

Emkay Taps And Cutting Tools Ltd Return on capital employed is 10.45% for FY-2025, which is below its 5-year historical median of 26.75%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Check Before You Invest : Emkay Taps And Cutting Tools Ltd

Snapshot

Q.1 Which industry/sub-sector does Emkay Taps And Cutting Tools Ltd belong to?

Emkay Taps And Cutting Tools Ltd belongs to the Capital Goods & Industrial Consumables sector, operating specifically within the Engineering - Industrial Equipments segment.

Q.2 Is Emkay Taps And Cutting Tools Ltd a good quality company?

Emkay Taps And Cutting Tools Ltd is a good quality company, based on a consistently good 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 Emkay Taps And Cutting Tools Ltd undervalued or overvalued?

Emkay Taps And Cutting Tools 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	4.09	9.23
Price to Book	0.38	1.78
Price to Sales	2.62	4.67
EV to EBITDA	3.56	6.94

Q.4 Is Emkay Taps And Cutting Tools Ltd a good buy now?

Emkay Taps And Cutting Tools Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. 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 Emkay Taps And Cutting Tools Ltd?

Emkay Taps And Cutting Tools Ltd revenue growth is -59.5% for FY-2025, which is below its 5-year CAGR of -3.75%, indicating slower growth.

Q.2 Gross Profit margin of Emkay Taps And Cutting Tools Ltd?

Emkay Taps And Cutting Tools Ltd Gross profit margin which is the profit after deduction of direct costs, is 71.7% for FY-2025, which is above its 5-year median of 56.4%, indicating increasing margins.

Q.3 Operating Profit Margin of Emkay Taps And Cutting Tools Ltd?

Emkay Taps And Cutting Tools Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -55.06% for FY-2025, which is below its 5-year median of 46.54% indicating decreasing margins.

Q.4 Net Profit Margin of Emkay Taps And Cutting Tools Ltd?

Emkay Taps And Cutting Tools Ltd Net Profit Margin is 64.05% for FY-2025, is above its 5-year median of 49.8%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	71.7	56.4
Operating Profit Margin (%)	-55.06	46.54
Net Profit Margin (%)	64.05	49.8

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Emkay Taps And Cutting Tools Ltd?

Emkay Taps And Cutting Tools Ltd Return on Asset is 8.43%, which is below its 5-year historical median of 19.17%, indicating deteriorated asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Emkay Taps And Cutting Tools Ltd?

Emkay Taps And Cutting Tools Ltd Return on capital employed is 10.45% for FY-2025, which is below its 5-year historical median of 26.75%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Emkay Taps And Cutting Tools Ltd?

Emkay Taps And Cutting Tools Ltd Return on equity is 9.14% for FY-2025, which is below its 5-year historical median of 21.58%, indicating the business is making worse use of its shareholders capital.

Q.8 Cash conversion cycle of Emkay Taps And Cutting Tools Ltd?

Emkay Taps And Cutting Tools Ltd Cash conversion cycle is 151 days, above its 5-year historical median of 83 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.14	0.45
ROE (%)	9.14	21.58
ROCE (%)	10.45	26.75
Cash Conversion Cycle	151 days	83 days

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

Q.9 Debt to Equity ratio of Emkay Taps And Cutting Tools Ltd?

Emkay Taps And Cutting Tools Ltd Debt-to-Equity ratio is 0.01, which is lower the industry average of 0.18, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Emkay Taps And Cutting Tools Ltd?

Emkay Taps And Cutting Tools Ltd Debt to cash flow from operations is 0.21, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Emkay Taps And Cutting Tools Ltd?

Q.1 Promoter shareholding and pledge status of Emkay Taps And Cutting Tools Ltd?

Promoters hold 74.99% of the Emkay Taps And Cutting Tools Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Emkay Taps And Cutting Tools Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Emkay Taps And Cutting Tools Ltd vs industry peers?

Emkay Taps And Cutting Tools Ltd revenue CAGR is -3.75%, compared to the industry median CAGR of 3.04%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	-59.5	3
Gross Profit Growth (%)	-66.7	23.6
Operating Profit Growth (%)	-152.3	21.7
Net Profit Growth (%)	-62.5	27.1

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.14	0.89
ROE (%)	9.14	12.09
ROCE (%)	10.45	14.64
Cash Conversion Cycle (days)	150.61	98

Valuation & price assessment

Q.1 Valuation ratios of Emkay Taps And Cutting Tools Ltd vs historical?

The current P/E ratio of 4.09 is lower than its historical median of 9.23, indicating that the stock is trading below its historical average valuation.

Q.2 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	4.09	9.23	29.36
Price to Book	0.38	1.78	2.91
Price to Sales	2.62	4.67	2.93
EV to EBITDA	3.56	6.94	15.77

Q.3 Stock return of Emkay Taps And Cutting Tools Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of -3.18% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-3.2%	-32.4%	-72.5%

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Check Before You Invest : Emkay Taps And Cutting Tools Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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Check trending companies

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