Stock Price Movement and Market Context
On 9 December 2025, Empire Industries' share price recorded an intraday low of Rs.880.35, representing a decline of 3.84% for the day. Despite this, the stock managed to outperform its sector by 3.67%, indicating some resilience relative to peers in the diversified industry. The stock has shown a slight recovery after two consecutive days of decline, yet it remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This positioning suggests a prevailing downward trend in the short to long term.
In comparison, the Glass sector, within which Empire Industries operates, has experienced a fall of 2.79% on the same day. The broader market, represented by the Sensex, opened lower by 359.82 points and was trading at 84,558.88, down 0.64%. Notably, the Sensex remains close to its 52-week high of 86,159.02, just 1.89% away, and is trading above its 50-day moving average, which itself is positioned above the 200-day moving average, signalling a generally bullish market trend.
Long-Term Performance and Valuation Metrics
Over the past year, Empire Industries has delivered a return of -14.99%, contrasting with the Sensex's positive return of 3.75% during the same period. The stock's 52-week high was Rs.1,599, highlighting the extent of the recent decline. This underperformance extends beyond the last year, with the stock lagging behind the BSE500 index over the last three years, one year, and three months.
From a valuation perspective, Empire Industries presents a very attractive enterprise value to capital employed ratio of 1.6. Its return on capital employed (ROCE) stands at 14.2%, which is considered appealing relative to peers. Despite these valuation metrics, the company’s operating profit has shown a negative compound annual growth rate of -1.64% over the last five years, indicating subdued long-term growth.
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Financial Health and Profitability Indicators
Empire Industries’ ability to service its debt is reflected in an average EBIT to interest ratio of 1.62, which indicates limited coverage of interest expenses by operating earnings. The company’s interest expense for the latest quarter was Rs.7.92 crore, the highest recorded in recent periods. Additionally, non-operating income accounted for 33.84% of profit before tax (PBT) in the same quarter, suggesting a notable contribution from sources outside core operations.
The company reported flat results in the September 2025 half-year period, with a return on capital employed (ROCE) at 13.70%, the lowest in recent assessments. Profit figures over the past year have declined by 12.6%, aligning with the negative trend in stock returns.
Despite the company’s size, domestic mutual funds hold no stake in Empire Industries. Given that mutual funds typically conduct thorough research and maintain positions in companies with favourable prospects, this absence may reflect a cautious stance towards the stock’s current valuation or business outlook.
Sector and Peer Comparison
Empire Industries is trading at a discount compared to the average historical valuations of its peers in the diversified sector. While the stock’s valuation metrics such as ROCE and enterprise value to capital employed ratio appear attractive, the company’s recent financial performance and market positioning have contributed to its subdued stock price trajectory.
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Summary of Key Concerns
The stock’s decline to a 52-week low is underpinned by several factors including weak debt servicing capacity, declining profits, and flat recent results. The absence of domestic mutual fund holdings further highlights a cautious market stance. Additionally, the stock’s position below all major moving averages signals a challenging environment for price recovery in the near term.
Market Environment and Outlook
While the broader market indices such as the Sensex maintain a bullish posture, Empire Industries’ stock performance diverges from this trend. The company’s long-term growth metrics and recent financial results have not aligned with the overall market momentum, contributing to its current valuation and price levels.
Investors and market participants may continue to monitor the stock’s movement relative to sector peers and broader market indicators as it navigates this period of subdued performance.
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