X

Emco Ltd. Stock Analysis

Small Cap
Evaluated by 376 users | BSE: 504008 | NSE: EMCO |
Engineering - Construction
Incorporated in 1964, EMCO is engaged in manufacturing power equipments and is the third largest manufacturer of transformers in India.In 1964, the company started with manufacturing small distribution transformers. In its very first year the company entered in techno- financial...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Value Creation
 Mar'09Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18
Return on Capital Employed 13.4%20.56%-0.38%5.88%6.14%7.48%7.05%4.7%4.44%-4.08%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 9969791,049810669832912806841346
Y-o-Y Gr. Rt.--1.8%7.3%-22.9%-17.4%24.4%9.6%-11.6%4.4%-58.9%
Adjusted EPS (Rs.) 10.0121.7-6.820.430.972.380.12-3.97-5.97-24.55
Y-o-Y Gr. Rt.-116.8%-131.4%NA125.6%145.4%-95%-3408.3%NANA
Book Value per Share (Rs.) 71.3994.0485.4486.4586.6687.6386.097968.6745.07
Adjusted Net Profit 58.9134-44.42.86.315.50.8-26.8-40.5-167
Net Op. Cash Flow (Rs. Cr.) 79.96.8-14.4-40.779.551.4-4.376.7-18.264.4
Debt to Cash Flow from Ops 4.4638.01-25.17-10.495.329.47-135.9310.47-51.8514.27
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Emco Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales -11.1%-12.4%-27.6%-58.9%
Adjusted EPS -210.5%-290.8%-689.2%NA
Book Value per Share -5-12.3-19.4-34.4
Share Price -30.4% -46.9% -59.4% 63.8%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'09Mar'10Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18
Return on Equity (%) 14.0926.17-7.770.51.122.730.14-4.81-8.09-43.14
Operating Profit Margin (%) 15.9412.060.478.5710.8210.689.838.8710.86-21.23
Net Profit Margin (%) 5.9113.73-4.230.350.941.860.09-3.33-4.81-48.19
Debt to Equity 0.850.450.650.760.750.850.991.512.033
Working Capital Days 2793033004475845124905545351,264
Cash Conversion Cycle 116180207257301240228251231619
Entity Percentage Holding
Promoters 45.24%
Institutions 0.67%
Non-Institutions 54.09%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)
Data is not available for this company.

The 5-year analysis of Emco Ltd.'s performance infers:

Emco Ltd. earnings have declined by -290.8%, whereas share price has depreciated -46.9% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Emco Ltd. share prices over the last 10 years. Here is what we found out:

Emco Ltd. share price has depreciated -32% annually over the past ten years.

Incorporated in 1964, EMCO is engaged in manufacturing power equipments and is the third largest manufacturer of transformers in India.

In 1964, the company started with manufacturing small distribution transformers. In its very first year the company entered in techno- financial collaboration with Secheron a Swiss based company. During 1987, the company came under new management of Mr.Rajesh Jain and

Incorporated in 1964, EMCO is engaged in manufacturing power equipments and is the third largest manufacturer of transformers in India.

In 1964, the company started with manufacturing small distribution transformers. In its very first year the company entered in techno- financial collaboration with Secheron a Swiss based company. During 1987, the company came under new management of Mr.Rajesh Jain and Shailesh Jain. Later in order to cater distribution transformers up to 20 MVA and special transformer market the company set up an additional unit at Jalgaon in Mumbai.

In 1996, the company diversified its business by manufacturing electronic energy meters by setting up division in Dadra with an installed capacity of over 1.3 million energy meters per year. It also set up a project division for construction of sub-station projects on turnkey basis.

The project division set up many turnkey sub-stations up to 400 kV class and have acquired the expertise to setting up 400 kV sub-stations. Later the company became the value added resellers for G.E.Harris of Canada offering latest SCADA solutions. A major milestone was achieved linking 60 sub-stations to a master controlled centre through fibre optic cables.

EMCO provides innovative technologies, solutions, products and services to a wide range of customers in the transmission and distribution sector. The company has an employee strength of over 1300 people working across in various plants and regional offices and representatives in over 17 countries.

Today it exports the products to countries in the American Continent, Europe, Middle East and South East Asia. All manufacturing facilities of company are ISO 9001, 14001 and OHSAS 18001 certified for quality management.

The company has acquired URJA Engineers, a Baroda based transmission line company executing turnkey transmission line projects up to 400 KV. The company has plans to diversify in to switchgear business.

Emco has entered in a bilateral trade agreement with Edison Power to form EMCO-EDISON Transformers (Pty).

Awards/ Achievements

2009
Ranked 9th as per Total Income in the Power Equipment Sector by Dun & Bradstreet's India's Top 500 Companies.
New Fabrication facility for manufacturing tanks at Jalgaon
2010
Successful Short Circuit testing of 315 MVA, 220kV class Generator Transformer at KEMA, The Netherlands.
ISO/ IEC 27001:2005 Certification awarded for Information Security Management System (ISMS) by BVC to IT Department.
Successfully executed and commissioned first 400 kV AIS Substation.
2011
Successful Short Circuit Testing of 315 MVA, 400/220/33 kV ICT at KEMA, The Netherlands.
Successfully executed & commissioned first 220/22 kV GIS Substation.
2012
EMCO commissions its 5 MW Photovoltaic Solar Power Plant successfully at Village Fatepur in Surendranagar district of Gujarat.
2013
Received first order for 240 kms of + - 800 kV HVDC Transmission line from PGCIL
Successful Short-circuit testing of 315 MVA, 400/220/33 kV ICT at KEMA, The Netherlands in First Go.

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

Callback