Electronics Mart India Limited

Consumer Cyclical — Specialty Retail · NSE

₹184.00+₹1.89 (+1.04%)

DalalBaazaar Score

46 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by moderate debt load, small-cap size, which brings sharper price swings.

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

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:27 pm

Understanding the Business

Company site ↗

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

What does this company do?

Electronics Mart India Limited engages in the sale of consumer electronics and durable products in India.

IndustrySpecialty Retail

SectorConsumer Cyclical

Employees3,344

Annual revenue₹6,996 Cr

How does it make money?

Turns over ₹6,996 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹6 left at the operating level before interest, tax and depreciation. Each of its 3,344 employees supports ₹2.09 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.09 Cr

Who are its competitors?

The closest listed comparisons in its industry are TRENT LTD, TITAN COMPANY LIMITED, AVENUE SUPERMARTS 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 10.2% 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 ROE25.9%

What is the outlook?

8 analysts covering the stock expect revenue to grow about 13.6% and earnings to grow about 9.6% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+13.6%

Est. earnings growth+9.6%

Analysts8

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +37% while net margin moved -37% 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+37%

Margin effect-37%

DalalBaazaar Score

46/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 6.6% is weak
✗ ROE has fallen by 3.8 points over the period

Quality vs. Valuation

Company Quality

42/ 100

Weak

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

Valuation

62/ 100

Fair

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

34.3x

3Y Median

37.7x

40 monthly readings · mean 41.5x · range 21.1x–73.9x

Sector Median

69.9x

median of 3 sector peers

🟡Currently trading close to its 3y median of 37.7x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 51% below the peer median of 69.9x.

vs. its own history

Fair

37.7x median over 40 months · -9%

vs. sector peers

Cheap

69.9x median of 3 peers · -51%

vs. generic bands

Fair

15x–35x

EV/EBITDA

20.4x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 10.4% to 6.6% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 13.2% to 10.2% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 2.0x — little room if earnings dip.
🟡Debt is increasingFinancial
Total debt is up 39% over 3 years.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 2.9x to 2.0x.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 51% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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 debt load needs earnings to hold up
Debt is 4.5x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Returns on shareholder capital are falling
ROE has dropped from 10.4% to 6.6%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Small 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 8% a year✓ 11.2% CAGR
Latest reported year was 39.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 4%✓ 6.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 4.5x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Interest cover stays above 3x✗ 2.0x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹310 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

8 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ 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
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 6 neutral · 1 weak

Market Cap

₹7,079 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

34.3x

Fair

Fairly valued against the generic band

P/B Ratio

4.37x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹5.36

Profitable

Profitable on a per-share basis

ROE

6.6%

Weak

Weak capital efficiency

ROCE

10.2%

Moderate

Moderate return on the capital in the business

Debt/Equity

1.23x

Moderate

Moderate leverage

Revenue Growth (YoY)

39.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

460.7%

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

₹310 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

28.4x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

8.2%

Average

Average margins

Net Margin

2.6%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.82

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.50

Defensive

Steadier than the market

52W Range Position

78%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

194.2 / 187.2

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

37.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹5,090 Cr	₹5,916 Cr	₹6,563 Cr	₹6,996 Cr	+11.2%
EBITDA	₹343 Cr	₹457 Cr	₹458 Cr	₹443 Cr	+8.9%
EBITDA Margin	6.7%	7.7%	7.0%	6.3%	—
PAT (Net Profit)	₹123 Cr	₹184 Cr	₹160 Cr	₹107 Cr	-4.4%
EPS	₹3.63	₹4.78	₹4.17	₹2.78	-8.5%
ROE	10.4%	13.4%	10.6%	6.6%	—
ROCE	13.2%	15.4%	12.4%	10.2%	—
Total Debt	₹1,432 Cr	₹1,570 Cr	₹1,967 Cr	₹1,997 Cr	+11.7%
Free Cash Flow	-₹247 Cr	-₹14 Cr	-₹159 Cr	₹310 Cr	—

🟢 Revenue has grown at 11.2% a year over 3 years.

🟢 EBITDA has grown at 8.9% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 6.3% over 3 years.

🔴 PAT (Net Profit) has shrunk at 4.4% a year over 3 years.

🔴 EPS has shrunk at 8.5% a year over 3 years.

🔴 ROE has fallen from 10.4% to 6.6% over 3 years (-3.8 pts).

🔴 ROCE has fallen from 13.2% to 10.2% over 3 years (-3.0 pts).

🔴 Total Debt has grown at 11.7% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹247 Cr to ₹310 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3,797 Cr

Total Liabilities

₹2,171 Cr

Cash & Equivalents

₹50 Cr

Operating Cash Flow

₹444 Cr

Capex

-₹134 Cr

Shareholding (proxy)

Institutional Holding

27.6%

Insider Holding

65.2%

Analyst Consensus

Recommendations

7 Buy · 1 Hold · 0 Sell

Target Price (Mean)

₹209.13

+13.7% vs CMP

Target Range

₹139 – ₹232

Peer Comparison

Company	P/E	ROE
TRENT LTD	87.2x	25.9%
TITAN COMPANY LIMITED	68.5x	36.7%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

1 positive3 mixed2 general

Earnings Update: Here's Why Analysts Just Lifted Their Electronics Mart India Limited (NSE:EMIL) Price Target To ₹186

Simply Wall Street, 11 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

EMIL Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Electronics Mart India Raises FY27 Revenue Guidance to Over 20% and Margins Above 15%

Sahi, 23 Sept

Electronics Mart India shareholders approve all AGM resolutions

scanx.trade, 26 Sept

Anandam Enterprises, Navodya Enterprises acquire 1.4% stake in Electronics Mart India

Moneycontrol.com, 07 AugM&A

🟡Mixed / dependsAcquisitions change the balance sheet before they change the earnings. Look at what was paid, how it was funded, and whether debt rose.

Electronics Mart India consolidated net profit rises 458.00% in the June 2026 quarter

Business Standard, 07 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

MiddlingFinancial Health · Valuation · Risk

WeakBusiness Quality · Growth · Profitability

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. 1 high-severity red flag sits above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Interest cover stays above 3x · see Key things to watch ↑