Recent Price Movement and Market Context
The stock has been on a downward trajectory for the past five consecutive trading sessions, registering a cumulative loss of 4.71% during this period. Today’s closing price of Rs.99.95 represents the lowest level the stock has traded at in the last year, falling well below its 52-week high of Rs.168.80. This decline contrasts sharply with the broader market, where the Sensex managed to recover from an initial negative opening to close marginally higher at 84,701.49, just 1.72% shy of its own 52-week high of 86,159.02.
Electronics Mart India Ltd’s performance today also lagged behind its sector peers, underperforming the diversified retail sector by 0.84%. The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent bearish trend.
Financial Performance and Credit Metrics
The company’s financial indicators have reflected challenges over recent quarters. Electronics Mart India Ltd reported a decline in net sales by 8.53% in the September 2025 quarter, contributing to a series of five consecutive quarters of negative results. Operating profit has contracted at an annualised rate of 0.35% over the past five years, indicating subdued long-term growth prospects.
Profit after tax (PAT) for the latest quarter stood at Rs.4.81 crore, a steep fall of 82.4% compared to the average of the previous four quarters. Meanwhile, interest expenses have risen sharply, with a 38.76% increase over the first nine months of the fiscal year, reaching Rs.112.42 crore. The operating profit to interest coverage ratio has declined to a low of 2.12 times, underscoring the company’s constrained ability to service its debt obligations.
Debt and Valuation Considerations
One of the key factors influencing the stock’s rating is its elevated Debt to EBITDA ratio of 3.55 times, which points to a relatively high leverage position. This metric has contributed to the company’s downgrade from a ‘Sell’ to a ‘Strong Sell’ rating as of 29 December 2025, with a corresponding Mojo Score of 26.0. The market capitalisation grade remains low at 3, reflecting concerns about the company’s scale and financial stability.
Despite these challenges, Electronics Mart India Ltd maintains a return on capital employed (ROCE) of 7.4%, which, coupled with an enterprise value to capital employed ratio of 1.7, suggests an attractive valuation relative to its historical averages and peer group. However, this valuation advantage has not translated into positive returns, as the stock has delivered a negative 39.52% return over the past year, significantly underperforming the Sensex’s 8.23% gain over the same period.
Strong fundamentals, solid momentum, fair price – This Large Cap from the NBFC sector checks every box for our Top 1%. This should definitely be on your radar!
- - Complete fundamentals package
- - Technical momentum confirmed
- - Reasonable valuation entry
Long-Term and Recent Performance Trends
Over the last three years, Electronics Mart India Ltd has consistently underperformed the BSE500 index, with negative returns recorded across one-year, three-year, and three-month timeframes. The company’s profitability has also deteriorated, with profits declining by 51.4% over the past year. This sustained underperformance has been a key factor in the stock’s current valuation and market sentiment.
Institutional investors hold a significant stake in the company, accounting for 24.76% of shareholdings. These investors typically possess greater analytical resources and a longer-term perspective on company fundamentals, which may influence trading patterns and stock price movements.
Sector and Market Environment
The diversified retail sector, in which Electronics Mart India Ltd operates, has experienced mixed performance in recent months. While the broader market indices have shown resilience, the company’s stock has not mirrored this trend. Mega-cap stocks have been leading the market gains, whereas mid and small-cap stocks, including Electronics Mart India Ltd, have faced headwinds.
Holding Electronics Mart India Ltd from Diversified Retail? See if there's a smarter choice! SwitchER compares it with peers and suggests superior options across market caps and sectors!
- - Peer comparison ready
- - Superior options identified
- - Cross market-cap analysis
Summary of Key Metrics
To summarise, Electronics Mart India Ltd’s stock has declined to Rs.99.95, its lowest level in 52 weeks, following a series of quarterly results that have shown contraction in sales and profits alongside rising interest expenses. The company’s leverage remains elevated, with a Debt to EBITDA ratio of 3.55 times and interest coverage at 2.12 times, factors that have contributed to its current rating status. While valuation metrics such as ROCE and enterprise value to capital employed suggest some relative attractiveness, the stock’s performance has lagged significantly behind the broader market and sector indices.
Market conditions have been mixed, with the Sensex recovering from early losses and mega-cap stocks leading gains, but Electronics Mart India Ltd has not participated in this recovery. Institutional holdings remain substantial, reflecting continued interest from sophisticated investors despite the stock’s recent price weakness.
Only Rs. 9,999 - Get MojoOne + Stock of the Week for 1 Year (MRP = Rs. 34,999) Start Today
