EMS Ltd (EMSLIMITED) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Why is EMS Ltd ?

Poor long term growth as Net Sales has grown by an annual rate of -3.86% and Operating profit at -18.78% over the last 5 years

With a fall in Operating Profit of -35.74%, the company declared Very Negative results in Mar 26

The company has declared negative results for the last 3 consecutive quarters
NET SALES(Q) At Rs 120.50 cr has Fallen at -45.4% (vs previous 4Q average)
OPERATING PROFIT TO INTEREST(Q) Lowest at 4.51 times
PBT LESS OI(Q) At Rs 11.70 cr has Fallen at -71.7% (vs previous 4Q average)

With ROE of 8.6, it has a Expensive valuation with a 1.8 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -39.53%, its profits have fallen by -50.8%

Despite the size of the company, domestic mutual funds hold only 0% of the company

Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 1.23% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -39.53% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Other Utilities)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is EMS for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

EMS

-39.53%

-0.81

48.92%

Sensex

-5.6%

-0.42

13.26%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-3.86%

EBIT Growth (5y)

-18.78%

EBIT to Interest (avg)

30.20

Debt to EBITDA (avg)

0.49

Net Debt to Equity (avg)

0.09

Sales to Capital Employed (avg)

0.84

Tax Ratio

29.41%

Dividend Payout Ratio

4.54%

Pledged Shares

21.95%

Institutional Holding

0.45%

ROCE (avg)

24.96%

ROE (avg)

15.52%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.85

EV to EBIT

15.71

EV to EBITDA

14.57

EV to Capital Employed

1.78

EV to Sales

2.79

PEG Ratio

Dividend Yield

0.43%

ROCE (Latest)

11.31%

ROE (Latest)

8.58%

Loading Valuation Snapshot...

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-44What is not working for the Company

PAT(9M)

At Rs 52.66 cr has Grown at -64.12%

INTEREST(9M)

At Rs 10.19 cr has Grown at 62.52%

OPERATING PROFIT TO INTEREST(Q)

Lowest at 4.51 times

PBT LESS OI(Q)

At Rs 11.70 cr has Fallen at -71.7% (vs previous 4Q average

NET SALES(9M)

At Rs 494.35 cr has Grown at -33.96%

ROCE(HY)

Lowest at 11.77%

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.89 times

PBDIT(Q)

Lowest at Rs 18.31 cr.

OPERATING PROFIT TO NET SALES(Q)

Lowest at 15.20%

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 58.95 cr

EPS(Q)

Lowest at Rs 1.01

Loading Valuation Snapshot...

Here's what is not working for EMS

Net Sales - Quarterly

At Rs 120.50 cr has Fallen at -45.4% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 220.65 Cr

MOJO Watch

Near term sales trend is very negative

Net Sales (Rs Cr)

Operating Profit to Interest - Quarterly

Lowest at 4.51 times and Fallen

each quarter in the last five quarters

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 11.70 cr has Fallen at -71.7% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 41.42 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 5.59 cr has Fallen at -83.0% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 32.89 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Lowest at Rs 18.31 cr. and Fallen

each quarter in the last five quarters

MOJO Watch

Near term Operating Profit trend is quite negative

Operating Profit (Rs Cr)

Operating Profit Margin - Quarterly

Lowest at 15.20% and Fallen

each quarter in the last five quarters

MOJO Watch

Company's efficiency has deteriorated

Operating Profit to Sales

Profit Before Tax less Other Income (PBT) - Quarterly

Lowest at Rs 11.70 cr. and Fallen

each quarter in the last five quarters

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

Lowest at Rs 5.59 cr. and Fallen

each quarter in the last five quarters

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Debtors Turnover Ratio- Half Yearly

Lowest at 1.89 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio

Net Sales - Quarterly

Lowest at Rs 120.50 cr

in the last five quarters

MOJO Watch

Near term sales trend is negative

Net Sales (Rs Cr)

Interest - Quarterly

Highest at Rs 4.06 cr

in the last five quarters and Increased by 16.67 % (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Earnings per Share (EPS) - Quarterly

Lowest at Rs 1.01

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 58.95 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents