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 10-year financial track record.

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 below with their past averages.

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

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 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.3 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.4 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.5 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	0.14	0.45
ROE	9.14	21.58
ROCE	10.45	26.75
Cash Conversion Cycle	151 days	83 days

Q.6 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.7 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.8 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 with 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

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 with the industry average of 0.34, 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

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)

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 12.01%, indicating slower growth and losing its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-59.5	12
Gross Profit Growth	-66.7	NAN
Operating Profit Growth	-152.3	NAN
Net Profit Growth	-62.5	26.9

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.14	0.91
ROE	9.14	12.81
ROCE	10.45	15.04
Cash Conversion Cycle (days)	150.61	107

Valuation & price assessment

Q.1 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 -0.84% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	-0.8%	-32.1%	-73.4%

Q.3 Valuation ratios of Emkay Taps And Cutting Tools Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 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	4.01	9.31	29.52
Price to Book	0.37	1.79	2.90
Price to Sales	2.57	4.68	2.94
EV to EBITDA	3.49	6.94	15.76

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