Empire Industries Limited

Industrials — Conglomerates · NSE

₹1,001.00+₹11.70 (+1.18%)

DalalBaazaar Score

64 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Empire Industries Limited engages in manufacturing and selling of container glass, trading in frozen food, and indenting and property development businesses in India and internationally. The company manufactures and sells amber glass bottles for the pharmaceutical industry.

IndustryConglomerates

SectorIndustrials

Employees724

Annual revenue₹576 Cr

How does it make money?

Turns over ₹576 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹18 left at the operating level before interest, tax and depreciation. Each of its 724 employees supports ₹79.6 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹79.6 lakh

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA 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?Some evidence

ROCE of 15.1% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE15.2%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +3% while net margin moved +41% 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+3%

Margin effect+41%

DalalBaazaar Score

64/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 1.0% — barely ahead of inflation
• Profit CAGR of 13.2%

Quality vs. Valuation

Company Quality

62/ 100

Average

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

Valuation

84/ 100

Cheap

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

10.7x

Sector Median

88.8x

median of 3 sector peers

🟢Against its sector it trades 88% below the peer median of 88.8x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

88.8x median of 3 peers · -88%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

6.4x

PEG

0.81

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 15.7% to 18.0% over 3 years.
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

2 items require attention · 1 high · 1 watch

🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Inventory building faster than salesFinancial
Inventory up 30% against revenue up 3% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 15.7% to 18.0%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 88% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹45 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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?

Growth barely outpaces inflation
Revenue compounding at 1.0% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
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

1EBITDA margin holds above 16%✓ 18.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✓ 3.3x
How much operating profit can fall before interest stops being comfortably covered.
3Revenue growth stays above 4% a year✗ 1.0% CAGR
Latest reported year was 10.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Free cash flow remains positive✓ ₹45 Cr
Profit that never becomes cash eventually stops being profit.
5Debt / EBITDA stays below 2x✓ 1.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.

Investment Checklist

8 / 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
✓ 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

Price history

Quick Metrics

8 good · 3 neutral · 0 weak

Market Cap

₹601 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

10.7x

Cheap

Cheap against the generic band

P/B Ratio

1.71x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹93.5

Profitable

Profitable on a per-share basis

ROE

14.7%

Moderate

Moderate capital efficiency

ROCE

15.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.49x

Low

Conservative leverage

Revenue Growth (YoY)

10.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

47.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

2.50%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹45 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

8.6%

Average

Average margins

Net Margin

7.5%

Average

Average bottom-line conversion

Current Ratio

1.79

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.11

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

RSI (14)

36.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹559 Cr	₹490 Cr	₹551 Cr	₹576 Cr	+1.0%
EBITDA	₹88 Cr	₹87 Cr	₹93 Cr	₹104 Cr	+5.7%
EBITDA Margin	15.7%	17.7%	16.8%	18.0%	—
PAT (Net Profit)	₹36 Cr	₹37 Cr	₹34 Cr	₹52 Cr	+13.2%
EPS	₹59.21	₹61.67	₹57.42	₹85.91	+13.2%
ROE	12.5%	12.3%	11.0%	14.7%	—
ROCE	13.6%	14.8%	12.4%	15.1%	—
Total Debt	₹183 Cr	₹168 Cr	₹150 Cr	₹172 Cr	-2.0%
Free Cash Flow	₹72 Cr	₹63 Cr	₹86 Cr	₹45 Cr	-14.5%

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

🟢 EBITDA has grown at 5.7% a year over 3 years.

🟢 EBITDA Margin has risen from 15.7% to 18.0% over 3 years (+2.3 pts).

🟢 PAT (Net Profit) has grown at 13.2% a year over 3 years.

🟢 EPS has grown at 13.2% a year over 3 years.

🟢 ROE has risen from 12.5% to 14.7% over 3 years (+2.1 pts).

🟢 ROCE has risen from 13.6% to 15.1% over 3 years (+1.5 pts).

🟡 Total Debt has been broadly flat over 3 years (-2.0% a year).

🔴 Free Cash Flow has shrunk at 14.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹815 Cr

Total Liabilities

₹464 Cr

Cash & Equivalents

₹113 Cr

Operating Cash Flow

₹59 Cr

Capex

-₹14 Cr

Shareholding (proxy)

Institutional Holding

5.9%

Insider Holding

74.4%

Corporate Actions

Dividend Rate

₹25

Ex-Dividend Date

09 Sept 2026

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

2 positive4 general

Empire Industries sets Sept 9 record date for dividends; shares FY26 annual report link

scanx.trade, 27 Sept

Empire Industries Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 09 Sept

Empire Industries FY26 profit rises 49.6%, declares ₹50 dividend

scanx.trade, 27 MayCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Dividend stocks alert! Last chance to buy today to qualify for these shares - Check full list, amount, payment timeline

Livemint, 08 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Grasim Industries Ltd. Share Price Hits Fresh 52-Week High

Univest, 03 Aug

EMPIND Stock Price and Chart — NSE:EMPIND

TradingView, 01 Aug

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingBusiness Quality · Growth · Profitability · 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. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 5 tripwires tripped — Revenue growth stays above 4% a year · see Key things to watch ↑