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Check Before You Invest : EMS Ltd

BSE: 543983 NSE: EMSLIMITED ISIN: INE0OV601013
  |   Sector:  Construction & Infrastructure   |   Industry:  Engineering - Construction

Snapshot

Q.1 Which industry/sub-sector does EMS Ltd belong to?
EMS Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.
Q.2 Is EMS Ltd a good quality company?
EMS Ltd is a good quality company, based on a consistently good 7-year financial track record.
Q.3 Is EMS Ltd undervalued or overvalued?
EMS Ltd appears Undervalued, as its key valuation ratios are below with their past averages.
Q.4 Is EMS Ltd a good buy now?
EMS 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

Q.1 Revenue growth of EMS Ltd?
EMS Ltd revenue growth is 30.8% for FY-2025, which is above its 5-year CAGR of 24.39%, indicating faster growth.
Q.2 Return on capital employed (ROCE) of EMS Ltd?
EMS Ltd Return on capital employed is 28.43% for FY-2025, which is below its 5-year historical median of 31.81%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.
Q.3 Return on Asset of EMS Ltd?
EMS Ltd Return on Asset is 19.05%, which is in line with its 5-year historical median of 19.86%, indicating stable asset utilization efficiency.
Q.4 Return on Equity (ROE) of EMS Ltd?
EMS Ltd Return on equity is 20.88% for FY-2025, which is below its 5-year historical median of 23.72%, indicating the business is making worse use of its shareholders capital.
Q.5 Cash conversion cycle of EMS Ltd?
EMS Ltd Cash conversion cycle is 141 days, above its 5-year historical median of 130 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 0.98 0.93
ROE 20.88 23.72
ROCE 28.43 31.81
Cash Conversion Cycle 141 days 130 days
Q.6 Gross Profit margin of EMS Ltd?
EMS Ltd Gross profit margin which is the profit after deduction of direct costs, is 27.1% for FY-2025, which is below its 5-year median of 29.4%, indicating decreasing margins.
Q.7 Operating Profit Margin of EMS Ltd?
EMS Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 26.27% for FY-2025, which is below its 5-year median of 28.96% indicating decreasing margins.
Q.8 Net Profit Margin of EMS Ltd?
EMS Ltd Net Profit Margin is 19.38% for FY-2025, is below with its 5-year median of 21.31%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin 27.1 29.4
Operating Profit Margin 26.27 28.96
Net Profit Margin 19.38 21.31
Q.9 Debt to Equity ratio of EMS Ltd?
EMS Ltd Debt-to-Equity ratio is 0.01, which is lower with the industry average of 0.39, indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of EMS Ltd?
EMS Ltd Debt to cash flow from operations is 0.44, which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of EMS Ltd?
Promoters hold 69.70% of the EMS Ltd, with 21.95% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of EMS Ltd vs industry peers?
EMS Ltd revenue CAGR is 24.39%, compared to the industry median CAGR of 9.45%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth 30.8 9.5
Gross Profit Growth 22.6 14.9
Operating Profit Growth 26.7 11.1
Net Profit Growth 21.3 18.3
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover 0.98 0.68
ROE 20.88 8.34
ROCE 28.43 11.34
Cash Conversion Cycle (days) 140.97 57

Valuation & price assessment

Q.1 Stock return of EMS Ltd over the last decade?
Over the last 1 year(s), the stock has delivered a CAGR of -37.3% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price
CAGR
- - - -37.3%
Q.3 Valuation ratios of EMS 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 15.83 20.14 21.62
Price to Book 1.96 3.49 1.75
Price to Sales 2.59 4.10 1.50
EV to EBITDA 10.43 13.61 11.53

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