Emergent Industrial Solutions Limited

Basic Materials — Coking Coal · BSE

₹467.25+₹22.25 (+5.00%)

DalalBaazaar Score

39 / 100

🔴 Weak

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:59 pm

Understanding the Business

Company site ↗

The 60-second version of Emergent Industrial Solutions Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Emergent Industrial Solutions Limited primarily engages in trading of coal, coke, manganese ore, and other metal products in India.

IndustryCoking Coal

SectorBasic Materials

Employees12

Annual revenue₹429 Cr

How does it make money?

Turns over ₹429 Cr a year. Of every ₹100 of sales, about ₹0 reaches shareholders as profit, with ₹1 left at the operating level before interest, tax and depreciation. Each of its 12 employees supports ₹35.78 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹35.78 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA STEEL LIMITED, JSW STEEL LIMITED, ULTRATECH CEMENT LIMITED, ASIAN PAINTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 10.9% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE22.3%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +189% while net margin moved -68% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+189%

Margin effect-68%

DalalBaazaar Score

39/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ P/E of 167.5x is demanding — it needs sustained high growth to justify
✗ P/E is 226% above its own historical median of 51.4x — expensive by its own standards
✗ P/B of 7.34x is a steep premium to book

Quality vs. Valuation

Company Quality

41/ 100

Weak

How good the business is, ignoring the share price entirely.

Valuation

23/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

167.5x

3Y Median

51.4x

40 monthly readings · mean 64.2x · range 29.6x–238.8x

Sector Median

28.7x

median of 4 sector peers

⚠️Current valuation is approximately 226% above its 3y median of 51.4x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

⚠️Against its sector it trades 483% above the peer median of 28.7x.

vs. its own history

Expensive

51.4x median over 40 months · +226%

vs. sector peers

Expensive

28.7x median of 4 peers · +483%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

67.5x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Return on capital is rising
ROCE has improved from 8.3% to 10.9%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 watch

🟡Free cash flow is negativeFinancial
Free cash flow was -₹13 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

The price already assumes success
The stock trades 226% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 32% a year✓ 42.4% CAGR
Latest reported year was 230.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above -1%✓ 0.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹13 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 2.1x
How much operating profit can fall before interest stops being comfortably covered.
5ROCE stays above 8%✓ 10.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

3 good · 4 neutral · 4 weak

Market Cap

₹213 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

167.5x

Expensive

Expensive — verify against sector peers

P/B Ratio

7.34x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹2.79

Profitable

Profitable on a per-share basis

ROE

4.4%

Weak

Weak capital efficiency

ROCE

10.9%

Moderate

Moderate return on the capital in the business

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

230.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

57.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹13 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

1.6%

Weak

Thin margins leave little room for error

Net Margin

0.3%

Weak

Very little revenue reaches the bottom line

Current Ratio

14.60

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.35

Defensive

Steadier than the market

52W Range Position

35%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

413.9 / 394.1

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

64.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹149 Cr	₹356 Cr	₹792 Cr	₹429 Cr	+42.4%
EBITDA	₹2 Cr	₹3 Cr	₹10 Cr	₹3 Cr	+16.7%
EBITDA Margin	1.3%	0.9%	1.2%	0.7%	—
PAT (Net Profit)	₹1 Cr	₹2 Cr	₹4 Cr	₹1 Cr	-3.0%
EPS	₹3.05	₹3.75	₹8.27	—	—
ROE	6.3%	7.1%	13.6%	4.4%	—
ROCE	8.3%	13.1%	34.2%	10.9%	—
Free Cash Flow	-₹1 Cr	₹5 Cr	-₹8 Cr	-₹13 Cr	—

🟢 Revenue has grown at 42.4% a year over 3 years.

🟢 EBITDA has grown at 16.7% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 0.7% over 3 years.

🔴 PAT (Net Profit) has shrunk at 3.0% a year over 3 years.

🔴 ROE has fallen from 6.3% to 4.4% over 3 years (-1.9 pts).

🟢 ROCE has risen from 8.3% to 10.9% over 3 years (+2.6 pts).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹31 Cr

Total Liabilities

₹2 Cr

Total Debt

—

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹13 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

99.3%

Peer Comparison

Company	P/E	ROE
TATA STEEL LIMITED	19.8x	10.8%
JSW STEEL LIMITED	12.0x	24.7%
ULTRATECH CEMENT LIMITED	37.6x	11.1%
ASIAN PAINTS LIMITED	46.9x	22.3%

Recent News

6 general

Emergent Industrial Solutions Upper Circuit Today

Univest, 16 Oct

Emergent Industrial Solutions director Rakesh Suri exits after term ends

scanx.trade, 30 Sept

Emergent Industrial Solutions Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 31 Aug

Emergent Industrial Solutions (BSE: EMERGENT): Key Triggers That Could Shape Its Next Business Phase

Kalkine India, 08 Sept

FX Multitech (BSE:544941) - Stock Analysis

Simply Wall Street, 26 Sept

Emergent Industrial Solutions Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 01 Sept

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

MiddlingBusiness Quality · Growth

WeakFinancial Health · Profitability · Valuation · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation.

2 of 5 tripwires tripped — Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑