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Last Updated on: 14 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Emkay Global Financial Services Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 11, 2024, 12:46 pm

Market Cap 752 Cr.
Current Price 303
High / Low308/97.4
Stock P/E12.0
Book Value 112
Dividend Yield0.50 %
ROCE17.1 %
ROE13.4 %
Face Value 10.0
PEG Ratio0.18

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Emkay Global Financial Services Ltd

Competitors of Emkay Global Financial Services Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
Industry Average0 Cr0000%0.59%0.49%0

All Competitor Stocks of Emkay Global Financial Services Ltd

Quarterly Result

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales41.7837.5349.2654.0075.6192.3152.0351.9756.6254.3242.1546.6570.54
Expenses33.4332.6338.3938.7957.8764.9255.8843.2246.9847.9153.9952.2162.98
Operating Profit8.354.9010.8715.2117.7427.39-3.858.759.646.41-11.84-5.567.56
OPM %19.99%13.06%22.07%28.17%23.46%29.67%-7.40%16.84%17.03%11.80%-28.09%-11.92%10.72%
Other Income0.550.980.620.331.370.490.871.411.341.948.309.137.52
Interest1.131.440.700.723.970.460.750.780.911.251.340.831.12
Depreciation1.871.922.021.891.901.851.942.022.282.442.441.982.08
Profit before tax5.902.528.7712.9313.2425.57-5.677.367.794.66-7.320.7611.88
Tax %35.93%32.54%30.33%22.66%24.92%24.83%24.34%40.35%19.64%-84.55%27.46%119.74%18.94%
Net Profit3.671.256.129.779.3719.32-4.664.586.128.74-5.370.349.27
EPS in Rs1.490.512.493.973.807.84-1.891.862.483.55-2.180.143.76

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales1149982117105109156147135160272205235
Expenses1039976828285111124137134217189234
Operating Profit11-063424244523-32655151
OPM %9%-0%8%29%22%22%29%15%-2%16%20%8%0%
Other Income001-3600030211133
Interest4655434773345
Depreciation5544445788899
Profit before tax2-11-3-1117163712-1717461220
Tax %35%-31%-40%-49%28%26%22%31%29%32%24%-12%
Net Profit1-15-4-161212299-1311341416
EPS in Rs0.44-6.05-1.62-6.444.924.9911.663.55-5.114.5213.725.716.69
Dividend Payout %114%0%0%0%20%20%17%28%0%22%9%18%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-1600.00%73.33%-300.00%175.00%0.00%141.67%-68.97%-244.44%184.62%209.09%-58.82%
Change in YoY Net Profit Growth (%)0.00%1673.33%-373.33%475.00%-175.00%141.67%-210.63%-175.48%429.06%24.48%-267.91%

Emkay Global Financial Services Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:14%
5 Years:16%
3 Years:25%
TTM:66%
Compounded Profit Growth
10 Years:26%
5 Years:32%
3 Years:39%
TTM:445%
Stock Price CAGR
10 Years:19%
5 Years:35%
3 Years:38%
1 Year:172%
Return on Equity
10 Years:9%
5 Years:8%
3 Years:13%
Last Year:13%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital242424242425252525252525
Reserves1091058998111137142128142176186216
Borrowings413435114934231017443352
Other Liabilities9611011292116169136218381519488772
Total Liabilities2712742612262993653263815657647311,065
Fixed Assets433936353533353834323843
CWIP000000000200
Investments134112636281629342426
Other Assets227232221180237296263327501696669996
Total Assets2712742612262993653263815657647311,065

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +-518-461-22302194-4460-6322
Cash from Investing Activity +4-23-8-15-84-1-3-45-6
Cash from Financing Activity +-0-11-2-3035-20-27-26-3-7-72
Net Cash Flow-15-324-32-166-5148-6518

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow11.00-41.00-28.00-1.0013.00-25.0011.000.00-13.009.0011.00-18.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days12617316966218208146145152119188163
Inventory Days
Days Payable
Cash Conversion Cycle12617316966218208146145152119188163
Working Capital Days12714852-121-9-71-134-353-564-372-398-505
ROCE %-3%2%19%14%12%22%9%-6%12%23%7%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters74.51%74.49%74.49%74.49%74.49%74.49%74.49%74.49%74.49%74.49%74.34%74.27%
FIIs0.48%0.78%0.83%0.81%0.76%0.76%0.76%0.76%0.77%0.76%1.17%0.76%
DIIs0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.07%0.00%
Public25.01%24.73%24.69%24.70%24.75%24.75%24.75%24.74%24.74%24.74%24.41%24.97%
No. of Shareholders16,13515,45015,35015,76816,04215,52714,92214,75313,59312,96111,76612,354

Shareholding Pattern Chart

No. of Shareholders

This stock is not held by any mutual fund

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)13.165.7113.724.52-5.12
Diluted EPS (Rs.)12.745.6812.974.52-5.12
Cash EPS (Rs.)17.009.3917.227.90-1.69
Book Value[Excl.RevalReserv]/Share (Rs.)97.5485.3881.4267.5962.08
Book Value[Incl.RevalReserv]/Share (Rs.)97.5485.3881.4267.5962.08
Revenue From Operations / Share (Rs.)114.3982.39110.0766.0054.25
PBDIT / Share (Rs.)23.1310.5523.0712.30-0.81
PBIT / Share (Rs.)19.166.8320.009.20-3.94
PBT / Share (Rs.)17.185.0918.727.05-6.73
Net Profit / Share (Rs.)13.035.6614.154.80-4.82
NP After MI And SOA / Share (Rs.)13.145.7113.724.52-5.12
PBDIT Margin (%)20.2212.8120.9618.63-1.49
PBIT Margin (%)16.758.2818.1613.94-7.27
PBT Margin (%)15.016.1717.0010.68-12.40
Net Profit Margin (%)11.396.8712.857.28-8.89
NP After MI And SOA Margin (%)11.486.9312.466.85-9.42
Return on Networth / Equity (%)13.466.6916.846.69-8.23
Return on Capital Employeed (%)15.986.8218.2011.91-5.77
Return On Assets (%)3.041.924.421.97-3.30
Long Term Debt / Equity (X)0.000.000.140.010.01
Total Debt / Equity (X)0.170.120.190.070.06
Asset Turnover Ratio (%)0.310.260.270.310.35
Current Ratio (X)1.311.381.461.381.52
Quick Ratio (X)1.311.381.461.381.51
Dividend Payout Ratio (NP) (%)7.5921.887.280.000.00
Dividend Payout Ratio (CP) (%)5.8313.245.940.000.00
Earning Retention Ratio (%)92.4178.1292.720.000.00
Cash Earning Retention Ratio (%)94.1786.7694.060.000.00
Interest Coverage Ratio (X)11.646.0818.015.73-0.29
Interest Coverage Ratio (Post Tax) (X)7.244.2712.063.24-0.70
Enterprise Value (Cr.)-251.00-164.08-116.33-163.84-142.50
EV / Net Operating Revenue (X)-0.88-0.80-0.42-1.01-1.07
EV / EBITDA (X)-4.39-6.31-2.05-5.4171.33
MarketCap / Net Operating Revenue (X)1.020.780.940.980.46
Retention Ratios (%)92.4078.1192.710.000.00
Price / BV (X)1.200.751.280.960.40
Price / Net Operating Revenue (X)1.020.780.940.980.46
EarningsYield0.110.080.130.06-0.20

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Emkay Global Financial Services Ltd as of November 14, 2024 is: 181.00

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 14, 2024, Emkay Global Financial Services Ltd is Overvalued by 40.26% compared to the current share price 303.00

Intrinsic Value of Emkay Global Financial Services Ltd as of November 14, 2024 is: 301.38

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 14, 2024, Emkay Global Financial Services Ltd is Overvalued by 0.53% compared to the current share price 303.00

Last 5 Year EPS CAGR: 66.51%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -183.33, which is a positive sign.
  2. The company has higher reserves (136.58 cr) compared to borrowings (31.92 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (148.92 cr) and profit (10.54 cr) over the years.
  1. The stock has a low average ROCE of 9.25%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 156.08, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Emkay Global Financial Services Ltd:
    1. Net Profit Margin: 11.39%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 15.98% (Industry Average ROCE: 0.59%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 13.46% (Industry Average ROE: 0.49%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 7.24
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.31
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 12 (Industry average Stock P/E: 0)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0.17
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Emkay Global Financial Services Ltd. is a Public Limited Listed company incorporated on 24/01/1995 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L67120MH1995PLC084899 and registration number is 084899. Currently Company is involved in the business activities of Security and commodity contracts brokerage. Company’s Total Operating Revenue is Rs. 175.07 Cr. and Equity Capital is Rs. 24.64 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Finance & InvestmentsThe Ruby, 7th Floor, Mumbai Maharashtra 400028secretarial@emkayglobal.com
http://www.emkayglobal.com
Management
NamePosition Held
Mr. S K SabooChairman
Mr. Krishna Kumar KarwaManaging Director
Mr. Prakash KacholiaManaging Director
Dr. Bharat Kumar SinghIndependent Director
Mr. G C VasudeoIndependent Director
Dr. Satish UgrankarIndependent Director
Mr. R K KrishnamurthiIndependent Director
Mrs. Hutokshi WadiaIndependent Woman Director

FAQ

What is the latest intrinsic value of Emkay Global Financial Services Ltd?

The latest intrinsic value of Emkay Global Financial Services Ltd as on 14 November 2024 is ₹181.00, which is 40.26% lower than the current market price of ₹303.00.

What is the Market Cap of Emkay Global Financial Services Ltd?

The Market Cap of Emkay Global Financial Services Ltd is 752 Cr..

What is the current Stock Price of Emkay Global Financial Services Ltd as on 14 November 2024?

The current stock price of Emkay Global Financial Services Ltd as on 14 November 2024 is ₹303.

What is the High / Low of Emkay Global Financial Services Ltd stocks in FY 2024?

In FY 2024, the High / Low of Emkay Global Financial Services Ltd stocks is 308/97.4.

What is the Stock P/E of Emkay Global Financial Services Ltd?

The Stock P/E of Emkay Global Financial Services Ltd is 12.0.

What is the Book Value of Emkay Global Financial Services Ltd?

The Book Value of Emkay Global Financial Services Ltd is 112.

What is the Dividend Yield of Emkay Global Financial Services Ltd?

The Dividend Yield of Emkay Global Financial Services Ltd is 0.50 %.

What is the ROCE of Emkay Global Financial Services Ltd?

The ROCE of Emkay Global Financial Services Ltd is 17.1 %.

What is the ROE of Emkay Global Financial Services Ltd?

The ROE of Emkay Global Financial Services Ltd is 13.4 %.

What is the Face Value of Emkay Global Financial Services Ltd?

The Face Value of Emkay Global Financial Services Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Emkay Global Financial Services Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE