On 19 Nov 2025, Empower India’s score grade experienced an adjustment following a review of its financial and operational metrics. The company’s market capitalisation grade remains at 4, while the day’s trading saw a decline of 2.25%, with the stock price closing at ₹1.74, down from the previous close of ₹1.78. The 52-week price range spans from ₹1.06 to ₹2.74, indicating a relatively wide volatility band over the past year.
Examining the financial trend, Empower India’s quarterly results for September 2025 reveal a flat performance compared to the previous quarter. Net sales for the quarter stood at ₹34.70 crore, showing a growth rate of 23.8% relative to the preceding four-quarter average. Operating profit before depreciation, interest, and taxes (PBDIT) reached ₹2.83 crore, marking the highest level recorded in recent quarters. The operating profit margin to net sales ratio also peaked at 8.16%, while profit before tax excluding other income (PBT less OI) and profit after tax (PAT) both registered at ₹2.83 crore. Earnings per share (EPS) for the quarter was ₹0.02, the highest in the recent period.
However, when considering the latest six-month period, net sales amounted to ₹61.25 crore, reflecting a contraction of 26.84%. PAT for the same period was ₹3.00 crore, down by 29.58%. These figures suggest a mixed financial picture, with short-term quarterly improvements contrasted by a decline over the half-year horizon.
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Turning to the quality parameter, Empower India’s grade shifted from average to below average. Over the past five years, the company’s sales growth rate was recorded at 84.86%, indicating a substantial expansion in top-line revenue. Conversely, earnings before interest and taxes (EBIT) experienced a negative compound annual growth rate (CAGR) of -215.44%, signalling significant challenges in operational profitability. The average EBIT to interest coverage ratio stands at 1.15, reflecting limited capacity to comfortably service interest obligations. The company’s net debt to equity ratio is low at 0.10, supported by a negative net debt position, which suggests a relatively modest leverage profile.
Additional quality metrics include a sales to capital employed ratio of 0.25 and a tax ratio of 7.91%. Return on capital employed (ROCE) averaged 0.26%, while return on equity (ROE) was 1.02%, both figures indicating subdued profitability relative to invested capital and shareholders’ funds. Institutional holding remains minimal at 3%, with no pledged shares reported, highlighting a shareholder base dominated by non-institutional investors.
Empower India’s stock performance over various time frames further contextualises its evaluation. The stock has underperformed the broader market, with a one-week return of -6.45% compared to the Sensex’s 0.96%. Over one month, the stock declined by 21.62%, while the Sensex gained 0.86%. Year-to-date, Empower India’s return was -13%, contrasting with the Sensex’s 8.36%. Over the past year, the stock’s return was -21.97%, whereas the Sensex appreciated by 9.48%. Longer-term returns show a 5-year gain of 1060%, outpacing the Sensex’s 91.65%, and a 10-year return of 443.75% compared to the Sensex’s 232.28%, reflecting strong historical growth despite recent setbacks.
From a technical perspective, the trend has shifted from mildly bullish to sideways. Weekly and monthly Moving Average Convergence Divergence (MACD) indicators are mildly bearish, while the Relative Strength Index (RSI) on a weekly basis signals bearish momentum, with no clear signal on the monthly timeframe. Bollinger Bands show a mildly bullish stance weekly but bearish monthly. Daily moving averages remain mildly bullish, and the Know Sure Thing (KST) indicator is bullish weekly but mildly bearish monthly. Dow Theory analysis is mildly bearish weekly and mildly bullish monthly, indicating mixed technical signals. Overall, these technical indicators suggest a period of consolidation with no decisive directional bias.
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Valuation considerations highlight that Empower India’s stock is trading at levels that may be considered risky relative to its historical averages. The company’s profitability has been under pressure, with profits falling by approximately 60.9% over the past year. This decline in earnings, coupled with the stock’s negative returns over the same period, contrasts with the broader market’s positive performance, underscoring the challenges faced by the company in maintaining investor confidence.
In summary, the adjustment in Empower India’s investment evaluation reflects a complex interplay of factors. Financially, the company shows signs of stabilisation in the most recent quarter but continues to face headwinds over the half-year period. Quality metrics reveal below average operational profitability and limited interest coverage, while technical indicators suggest a sideways trend with mixed signals. Valuation risks remain elevated given the recent earnings contraction and underperformance relative to market benchmarks.
Investors analysing Empower India should consider these multi-dimensional factors carefully, balancing the company’s historical growth achievements against current operational and market challenges. The predominance of non-institutional shareholders and low institutional participation may also influence liquidity and price dynamics going forward.
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