Emkay Tools Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Emkay Tools Ltd trades at ₹1,029, in a confirmed uptrend and 20 weeks into that stage. That is +10.9% against its own 200-day average. It sits at 91% of a 52-week range of ₹805 to ₹1,050. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 1 straight week.

Today the stock is in a confirmed uptrend — week 20 of stage 2, confirmed. At ₹1,029 it trades +10.9% versus its 200-day average and sits at 91% of its 52-week range (₹805–₹1,050).

Against the market, two honest reads. Cumulative: over the last 1.1 years the stock moved +17% while the NIFTY 500 moved +1% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 1 straight week — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

Emkay Tools Ltd trades at 18.7× P/E, near the bottom of its own range — cheaper only 30% of the time. Its long-run median P/E is 19.7×, measured across 1.1 years of weekly readings. This places the multiple against the stock’s own record, and says nothing about what the business is worth.

Today's P/E of 18.7× is near the bottom of its own range — cheaper only 30% of the time, against a long-run median of 19.7× measured over 1.1 years of weekly readings. This is a comparison against the stock's own history — not a claim about what it is worth.

Why the multiple sits where it does: over the past year annual EPS moved +32.0% against a −0.1% price move — earnings outran the price, pushing the multiple DOWN its own range.

Put together: the multiple is low against its own past, so the story rests on the earnings line underneath it, not the multiple.

Stage: No read Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Emkay Tools Ltd reads as no read on its fundamental arc. Under eight usable quarters on the growth trio — not enough history for an honest trajectory read.

Why it matters: with too little history, an honest page says so instead of guessing a trajectory.

One or more growth curves carry a base-effect spike — a large year-on-year move off a near-zero or loss-making comparable quarter. Those spikes are capped before the classifier reads the trajectory, and shown pinned on the chart, so a single distorted quarter does not drive the stage call.

Return readings here are annual, not quarterly — read as level and direction only; they can confirm the growth curves but never drive the stage on their own.

Fewer than eight usable quarters on the growth curves — this page will not guess a trajectory from a stub of history.

4-Factor Sector Score

63.5/100 — rank 1 of 1 in Machine Tools - Others · 47% evidence confidence · provisional, ranked below fully-evidenced peers

Emkay Tools Ltd scores 63.5 out of 100 against the 1 companies it is compared with in Machine Tools - Others, ranking 1. Fill the missing evidence before acting; the ranking is deliberately pulled toward neutral.

The four contributions add to the total exactly: 19.5 + 21.5 + 10 + 12.5 = 63.5. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Emkay Tools Ltd reported ₹82.0 Cr of revenue in the Mar 26 quarter, +30.2% year on year. That is the 2nd straight quarter of year-on-year growth. Over 1 years it has compounded at 23.1% a year. The last full year, FY26, came in at ₹144 Cr. The last four reported quarters add to ₹261 Cr.

FY26 revenue came in at ₹144 Cr (+23.1% on the year), capping 1 years at 23.1% compound. The latest quarter (Mar 26) printed ₹82.0 Cr, +30.2% year on year — the 2nd consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +22.5% growth against the decade's 23.1% — the current year is running in line with its own long-run rate.

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Emkay Tools Ltd's operating margin is 57.0% in the Mar 26 quarter, +3.0 percentage points against the same quarter a year ago.

The latest quarter's operating margin is 57.0%, +3.0 pp against the same quarter a year ago. Across 2 fiscal years the operating margin has ranged 53.0%–56.0%.

Why: the numbers show the operating margin move clearly, but the cost lines behind it sit below what we hold — so we state the move without inventing its driver.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Emkay Tools Ltd earned ₹34.0 Cr of net profit in the Mar 26 quarter, +36.0% year on year. It is the 2nd consecutive quarter of growth. Full-year FY26 profit was ₹59.0 Cr. The 1-year compound rate is 34.1%. That is 41.5% of the quarter's revenue.

Mar 26 profit was ₹34.0 Cr, +36.0% year on year — the 2nd consecutive quarter of growth. On the full year, FY26 printed ₹59.0 Cr (+34.1%), and the 1-year compound rate is 34.1%.

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Over the last 2 fiscal years 97% of Emkay Tools Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹65.0 Cr of operating cash against ₹59.0 Cr of profit. After ₹5.0 Cr of capital spending, ₹60.0 Cr was left as free cash.

FY26: operating cash of ₹65.0 Cr against reported profit of ₹59.0 Cr, leaving free cash of ₹60.0 Cr after ₹5.0 Cr of capital spending. Across the last 2 fiscal years the conversion rate is 97% of profit.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Why conversion sits at 97%: the cash cycle tightened 139 days between FY25 and FY26 — cash that used to wait in the cycle now reaches the bank sooner.

Router verdict: the bigger cash user is investment — capital spending ran 1.7× depreciation over three years, so the next section's job is to check what that build-out is buying.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Emkay Tools Ltd's cash conversion cycle runs 331 days in FY26, down from 470 days in FY25. Capital spending ran ₹5.0 Cr over the last 1 years. At FY26 sales of ₹144 Cr each day of that cycle holds about ₹0.4 Cr, so roughly ₹131 Cr sits inside the business at any moment.

FY26: debtors at 92 days, inventory at 380 days — roughly 12.5 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 331 days, tighter than FY25's 470.

The full loop: cash goes out to suppliers and production on day 0; stock waits 380 days to sell; customers pay about 92 days after that; and suppliers themselves are paid at 142 days — netting out to the 331-day cycle.

In money terms: at FY26 sales of ₹144 Cr, each day of the cycle holds about ₹0.4 Cr — so the 331-day loop keeps roughly ₹131 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹5.0 Cr over the last 1 fiscal years against ₹3.0 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹0.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.⚠ unverified

Emkay Tools Ltd earns a ROCE of 71% in FY26. Return on invested capital clears the cost of that capital by +30.3 percentage points, so growth here adds value rather than only size. The wiring behind it is 41.0% net margin on 0.81× asset turns.

FY26 ROCE is 71%.

Why the return is what it is — the wiring (FY26): 41.0% net margin × 0.81× asset turns × 1.27× balance-sheet leverage ≈ 42.2% on equity. Margin is doing the heavy lifting; leverage is modest — this is an earned return, not a borrowed one.

The capstone test — ROIC − WACC: 42.3% − 12.0% = a +30.3 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. A spread this wide means every rupee reinvested creates more than a rupee of value — the engine compounds.

Debt Debt-to-equity says how much of the business is funded by borrowings; interest cover says how many times operating profit pays the interest bill. Low and high, respectively, is the safe corner.

Emkay Tools Ltd carries ₹0.0 Cr of borrowings against ₹140 Cr of equity in FY26, a debt-to-equity of 0.00. Over 1 years borrowings went from ₹1.0 Cr to ₹0.0 Cr. Capital spending ran ₹5.0 Cr across the last 1 of those years.

FY26: borrowings of ₹0.0 Cr against equity of ₹140 Cr — a debt-to-equity of 0.00. Over 1 years borrowings went from ₹1.0 Cr to ₹0.0 Cr while capital spending ran ₹5.0 Cr in just the last 1 — the build-out is being paid for out of cash, not debt.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

No holder of Emkay Tools Ltd moved a full percentage point over the last two years — the register is quiet. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — .

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Emkay Tools Ltd: the Z-score is not available for this stock, so we say so rather than invent one. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure. The debt, cash-flow and return sections above carry the balance-sheet evidence this page does hold, and each of them states its own reporting date.

The safety line in one sentence: the Z-score is not available for this stock, so we say so rather than invent one.

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