Empower India Limited

Technology — Electronics & Computer Distribution · NSE

₹1.72−₹0.09 (−4.97%)

DalalBaazaar Score

59 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by short-term liabilities exceed short-term assets, 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, 6:08 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Empower India Limited, together with its subsidiaries, provides IT infrastructure management and sustainable power solutions in India.

IndustryElectronics & Computer Distribution

SectorTechnology

Employees5

Annual revenue₹153 Cr

How does it make money?

Turns over ₹153 Cr a year. Of every ₹100 of sales, about ₹12 reaches shareholders as profit, with ₹3 left at the operating level before interest, tax and depreciation. Each of its 5 employees supports ₹30.67 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin3.0%

Net margin11.7%

Revenue / employee₹30.67 Cr

Who are its competitors?

The closest listed comparisons in its industry are TATA CONSULTANCY SERV LT, INFOSYS LIMITED, HCL TECHNOLOGIES LTD, WIPRO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

TATA CONSULTANCY SERV LTP/E 17.3x · ROE 45.6%

INFOSYS LIMITEDP/E 15.8x · ROE 32.0%

HCL TECHNOLOGIES LTDP/E 20.4x · ROE 24.6%

WIPRO LTDP/E 14.5x · ROE 15.9%

What is its competitive advantage?Little sign of one

Returns on capital of 5.6% 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.

ROCE5.6%

ROE5.6%

Peer median ROE32.0%

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 +1476% while net margin moved +615% 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+1476%

Margin effect+615%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Beta of 1.47 — amplifies market moves in both directions
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

57/ 100

Average

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

Valuation

74/ 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

10.8x

Sector Median

16.5x

median of 4 sector peers

🟢Against its sector it trades 35% below the peer median of 16.5x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

16.5x median of 4 peers · -35%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

10.8x

P/B

0.62x

EV/EBITDA

49.6x

PEG

0.03

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well4

Return on equity is rising
ROE has improved from 0.1% to 5.6%.
Return on capital is rising
ROCE has improved from 0.1% to 5.6%.
Very low debt
Debt/Equity of 0.11x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Debt is rising
Total debt is up 4096% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Short-term liquidity is tight
Current ratio of 0.99 — near-term obligations exceed near-term assets.

Red Flags

4 items require attention · 2 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 4096% over 3 years, from ₹1 Cr to ₹36 Cr.
🔴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.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹36 Cr in the latest year.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.99 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 35% 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 7.9x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
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.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1Revenue growth stays above 113% a year✓ 150.7% CAGR
Latest reported year was 38.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 1%✓ 3.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 7.9x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹36 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ 5.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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

6 good · 2 neutral · 3 weak

Market Cap

₹200 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

10.8x

Cheap

Cheap against the generic band

P/B Ratio

0.62x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.16

Profitable

Profitable on a per-share basis

ROE

5.6%

Weak

Weak capital efficiency

ROCE

5.6%

Weak

Low return on total capital employed

Debt/Equity

0.11x

Low

Conservative leverage

Revenue Growth (YoY)

38.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

1200.0%

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

-₹36 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹1.72

Operating Margin

3.8%

Weak

Thin margins leave little room for error

Net Margin

10.7%

Good

Strong bottom-line conversion

Current Ratio

0.99

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

1.47

High swing

Swings more than the market in both directions

52W Range Position

23%

Mid-range

Technical Snapshot

RSI (14)

42.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹10 Cr	₹117 Cr	₹124 Cr	₹153 Cr	+150.7%
EBITDA	₹0 Cr	₹4 Cr	₹2 Cr	₹5 Cr	+181.7%
EBITDA Margin	2.1%	3.2%	1.7%	3.0%	—
PAT (Net Profit)	₹0 Cr	₹7 Cr	₹5 Cr	₹18 Cr	+383.1%
EPS	₹0	₹0.06	₹0.04	₹0.15	+375.0%
ROE	0.1%	2.3%	1.7%	5.6%	—
ROCE	0.1%	2.3%	1.8%	5.6%	—
Total Debt	₹1 Cr	₹0 Cr	₹21 Cr	₹36 Cr	+247.5%
Free Cash Flow	-₹1 Cr	-₹6 Cr	₹18 Cr	-₹36 Cr	—

🟢 Revenue has grown at 150.7% a year over 3 years.

🟢 EBITDA has grown at 181.7% a year over 3 years.

🟡 EBITDA Margin has held roughly flat at 3.0% over 3 years.

🟢 PAT (Net Profit) has grown at 383.1% a year over 3 years.

🟢 EPS has grown at 375.0% a year over 3 years.

🟢 ROE has risen from 0.1% to 5.6% over 3 years (+5.5 pts).

🟢 ROCE has risen from 0.1% to 5.6% over 3 years (+5.5 pts).

🔴 Total Debt has grown at 247.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹429 Cr

Total Liabilities

₹107 Cr

Total Debt

₹36 Cr

Cash & Equivalents

₹8 Cr

Operating Cash Flow

-₹36 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

41.7%

Peer Comparison

Company	P/E	ROE
TATA CONSULTANCY SERV LT	17.3x	45.6%
INFOSYS LIMITED	15.8x	32.0%
HCL TECHNOLOGIES LTD	20.4x	24.6%
WIPRO LTD	14.5x	15.9%

Recent News

1 mixed5 general

Empower India Ltd. Lower Circuit Today: Price, Data and Peers

Univest, 05 Oct

Empower India (EMPOWER) Share/Stock Price Live, NSE

TechGraph, 09 Oct

Empower India Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 31 Aug

Empower India Ltd Sees Exceptional Volume Amid Price Correction

MarketsMojo, 14 Oct

Investors Shouldn't Be Too Comfortable With Empower India's (NSE:EMPOWER) Earnings

Simply Wall Street, 04 JunResults

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

Penny stock under ₹10 jumps 30% in seven straight sessions | Here's why

Livemint, 13 Oct

Watch Items

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

DalalBaazaar Thesis

🟡Business QualityAdequate10.2/20

🔴Financial HealthStretched8.6/20

🟢GrowthStrong14.9/20

🟡ProfitabilityModerate9.4/15

🟢ValuationAttractive13/15

🔴RiskHigh2.7/10

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 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 113% a year150.7% CAGR
✓EBITDA margin holds above 1%3.0%
✗Debt / EBITDA falls below 3x7.9x
✗Free cash flow remains positive-₹36 Cr
✗ROCE stays above 8%5.6%