Emkay Global Financial Services Limited

Financial Services — Capital Markets · NSE

₹277.40+₹4.35 (+1.59%)

DalalBaazaar Score

52 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

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, 7:01 pm

Understanding the Business

Company site ↗

The 60-second version of Emkay Global Financial Services Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Emkay Global Financial Services Limited, together with its subsidiaries, provides various financial services in India. It operates through two segments, Advisory and Transactional Services; and Financing and Investment Activities.

IndustryCapital Markets

SectorFinancial Services

Employees470

Annual revenue₹350 Cr

How does it make money?

Turns over ₹350 Cr a year. Of every ₹100 of sales, about ₹4 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation. Each of its 470 employees supports ₹74.4 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹74.4 lakh

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC LIFE INS CO LTD, SBI LIFE INSURANCE CO LTD. 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?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE13.7%

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 +79% while net margin moved -40% 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+79%

Margin effect-40%

DalalBaazaar Score

52/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 4.0% is weak

Quality vs. Valuation

Company Quality

57/ 100

Average

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

Valuation

42/ 100

Expensive

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

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

40.3x

3Y Median

18.0x

40 monthly readings · mean 21.2x · range 8.6x–50.5x

Sector Median

58.4x

median of 3 sector peers

⚠️Current valuation is approximately 123% above its 3y median of 18.0x. 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 31% below the peer median of 58.4x.

vs. its own history

Expensive

18.0x median over 40 months · +123%

vs. sector peers

Cheap

58.4x median of 3 peers · -31%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

18.6x

PEG

15.51

What's Good / What's Bad

🟢 What's Going Well1

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

🟡Interest coverage is deterioratingFinancial
Cover has fallen from 14.1x to 3.1x.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 31% 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 price already assumes success
The stock trades 123% 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 16% a year✓ 21.4% CAGR
Latest reported year was 22.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 11%✓ 12.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 8%✗ 4.0%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Interest cover stays above 3x✓ 3.1x
How much operating profit can fall before interest stops being comfortably covered.
5Valuation vs its own median of 18.0x✗ 40.3x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 11 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
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 3 neutral · 4 weak

Market Cap

₹775 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

40.3x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.91x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹6.89

Profitable

Profitable on a per-share basis

ROE

4.0%

Weak

Weak capital efficiency

ROCE

7.1%

Weak

Low return on total capital employed

Debt/Equity

0.26x

Low

Conservative leverage

Revenue Growth (YoY)

22.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

68.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.54%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹80 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

9.5%

Average

Average margins

Net Margin

4.9%

Average

Average bottom-line conversion

Current Ratio

1.24

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.36

Defensive

Steadier than the market

52W Range Position

49%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

273.5 / 257.5

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

53.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹195 Cr	₹270 Cr	₹317 Cr	₹350 Cr	+21.4%
EBITDA	₹24 Cr	₹56 Cr	₹77 Cr	₹44 Cr	+22.9%
EBITDA Margin	12.3%	20.6%	24.3%	12.7%	—
PAT (Net Profit)	₹14 Cr	₹32 Cr	₹57 Cr	₹15 Cr	+2.6%
EPS	₹5.68	₹12.74	₹21.95	₹5.51	-1.0%
ROE	6.7%	13.5%	18.7%	4.0%	—
ROCE	6.6%	17.8%	17.7%	7.1%	—
Total Debt	₹23 Cr	₹42 Cr	₹55 Cr	₹100 Cr	+64.3%
Free Cash Flow	-₹71 Cr	₹15 Cr	-₹9 Cr	-₹80 Cr	—

🟢 Revenue has grown at 21.4% a year over 3 years.

🟢 EBITDA has grown at 22.9% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 12.7% over 3 years.

🟢 PAT (Net Profit) has grown at 2.6% a year over 3 years.

🟡 EPS has been broadly flat over 3 years (-1.0% a year).

🔴 ROE has fallen from 6.7% to 4.0% over 3 years (-2.7 pts).

🟡 ROCE has held roughly flat at 7.1% over 3 years.

🔴 Total Debt has grown at 64.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,740 Cr

Total Liabilities

₹1,359 Cr

Cash & Equivalents

₹47 Cr

Operating Cash Flow

-₹72 Cr

Capex

-₹9 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

77.7%

Corporate Actions

Dividend Rate

₹1.5

Ex-Dividend Date

03 Aug 2026

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC LIFE INS CO LTD	58.4x	11.3%
SBI LIFE INSURANCE CO LTD	63.9x	13.7%

Recent News

2 mixed4 general

Emkay Global gets NSE listing approval for 1 lakh promoter shares

scanx.trade, 16 Oct

Is Emkay Global Financial Services the Best Stock in Its Sector? A Look at the Numbers

Univest, 25 Sept

Despite an 18% YTD fall, Emkay remains positive about this realty stock - Q2 business update, target price

Livemint, 05 OctAnalyst view

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

Buy HDFC Bank; target of Rs 1225: Emkay Global Financial

Moneycontrol.com, 05 Oct

Jio IPO’s grey market hints at 20% listing pop. What are Emkay, SBI Securities saying?

The Economic Times, 17 Oct

Emkay Global Financial Services Limited's (NSE:EMKAY) Price Is Out Of Tune With Earnings

Simply Wall Street, 01 FebResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingBusiness Quality · Growth

WeakProfitability · Valuation · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you.

2 of 5 tripwires tripped — Return on equity stays above 8%; Valuation vs its own median of 18.0x · see Key things to watch ↑