Empire Industries 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.

Empire Industries Ltd trades at ₹1,120, in a confirmed uptrend and 7 weeks into that stage. That is +12.5% against its own 200-day average. It sits at 83% of a 52-week range of ₹873 to ₹1,169. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 8 straight weeks.

Today the stock is in a confirmed uptrend — week 7 of stage 2, confirmed. At ₹1,120 it trades +12.5% versus its 200-day average and sits at 83% of its 52-week range (₹873–₹1,169).

Against the market, two honest reads. Cumulative: over the last 10.4 years the stock moved −31% while the NIFTY 500 moved +277% — behind the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 8 straight weeks — 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.

Story check

Empire Industries Ltd's story is not scored yet against the markers our research file set on 22 August 2026. Where it sits in its own cycle: MID_EXPANSION. Still open: A reversal in cash conversion where inventory days climb back above 200 days combined with borrowings exceeding 200 Cr rupees would break the capital allocation thesis.

Our read, 22 August 2026. Empire Industries combines cash generation from its core business with balance sheet deleveraging, trading at 11.9x trailing earnings.

What is proven. Empire Industries combines cash generation from its core business with balance sheet deleveraging, trading at 11.9x trailing earnings.

What is not proven yet. A reversal in cash conversion where inventory days climb back above 200 days combined with borrowings exceeding 200 Cr rupees would break the capital allocation thesis.

🚨 What would change our mind. A reversal in cash conversion where inventory days climb back above 200 days combined with borrowings exceeding 200 Cr rupees would break the capital allocation thesis.

Layer 1 read, 22 August 2026 — KEEP. Cheapest in a decade with profit at a record - but the debt-repayment story quietly went into reverse this year. Empire trades at 11.9x earnings, the 15th percentile of its own ten-year range, while trailing profit sits at an all-time high of Rs 56cr and the share price is still 55% below its peak - a real compressed-multiple setup, not a cheap-because-shrinking trap. The catch is that the pillar of the story, paying down debt out of its own cash, stopped working in the year just gone: borrowings rose from Rs 150cr to Rs 172cr and free cash halved to Rs 44cr as the inventory squeeze that funded it began to unwind. Because the company holds no earnings calls at all, nobody can ask management why - which is why this can never be more than a second-tier idea for us.

What would change Layer 1’s mind. Sharpening the timeline's own falsification line: it says inventory above 200 days plus borrowings above Rs 200cr breaks the capital-allocation case. At this decision level, one more year like FY26 does it - if FY27 shows borrowings still at or above Rs 172cr AND the working-capital cycle back above 200 days (from 179), the cash engine that justifies the cheap multiple is gone and this becomes a genuine value trap rather than a compressed setup.

Layer 2 read, 22 August 2026 — ADVANCE. Improving sector earnings earn an advance, but the missing company call caps confidence. The internal record still shows material recurring other income and weaker recent free cash flow. The required fallback check adds a positive: sector profit and operating margins improved into FY26, while the old gas warning is thin. With no company call, the Information Vacuum model limits confidence rather than blocking L3 review.

What would change Layer 2’s mind. ADVANCE would flip to DROP if a current primary source shows that recurring other income is masking weak core profit while annual operating cash falls through driver D1's kill-switch.

Layer 3 read, 22 August 2026 — BENCH. Bench the cheap shares until management visibility catches up with the attractive numbers. The nine-type sweep found no MEDIUM or HIGH operating risk, but L3 could not verify company-specific pledging, related-party or auditor facts, and the company hosts no quarterly earnings calls. CARE's working-capital warning aligns with Timeline risk R4, while the targeted gas search stayed generic rather than proving an Empire-specific disruption. The low multiple remains useful context, but the 14th-percentile and MoS readings are ⚠ model judgments and do not overrule the management watchlist.

What would change Layer 3’s mind. An FY27 filing showing both inventory days above 200 and borrowings above ₹200 Cr would turn the cash-allocation concern into a broken thesis and flip BENCH to DROP.

The test written in advance. A reversal in cash conversion where inventory days climb back above 200 days combined with borrowings exceeding 200 Cr rupees would break the capital allocation thesis. — the thesis as written as stated by the next result.

The test written in advance. Absence of Management Earnings Commentary — Absence of Management Earnings Commentary Delayed quarterly reporting or qualified audit observations. by the next result.

The test written in advance. Recurrent Non-Operating Income Flattery — Recurrent Non-Operating Income Flattery Decline in core operating profit masked by sharp increases in non-operating items. by the next result.

What the company does. The business generated 358 Cr rupees of operating cash flow over five years against 26 Cr rupees of capital expenditure. Cumulative free cash flow funded 87 Cr rupees of debt repayment, lowering total borrowings from 232 Cr rupees to 172 Cr rupees. Valuation sits at 11.9x trailing earnings and 1.9x book value with return on capital employed at 18 percent.

🚨 What the surface reading misses. The surface reading is: Trailing price-to-earnings ratio of 11.8x at the 14th percentile suggests depressed valuation. The research reads it further: Multiple compression occurred alongside expanding earnings as trailing twelve-month net profit increased from 34 Cr rupees in fiscal 2025 to 52 Cr rupees in fiscal 2026 while share price consolidated.

🚨 What the surface reading misses. The surface reading is: Operating cash flow declined from 92 Cr rupees in fiscal 2025 to 59 Cr rupees in fiscal 2026, appearing as cash flow weakness. The research reads it further: Operating cash flow in fiscal 2025 was elevated by 41 Cr rupees of working capital release, whereas fiscal 2026 absorbed 9 Cr rupees of working capital while cash profit expanded from 51 Cr rupees to 68 Cr rupees.

Lever 4 · Paying down debt — BUILDING. Operating cash generation funds debt reduction without external equity dilution. What proves it keeps working: Self-Funded Balance Sheet Deleveraging. It stops working if Operating cash flow falls below 40 Cr rupees annually or capital expenditure expands beyond free cash generation.

Lever 1 · Operating leverage — BUILDING. Revenue scaling expands manufacturing profit margins. What proves it keeps working: Operating Leverage in Core Manufacturing. It stops working if Quarterly revenue drops below 160 Cr rupees or operating margins fall below 8 percent.

Sources: our stock research file (22 August 2026) · quarterly results through Jun 26. The story check is re-scored every results season; the record below never changes.

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

Empire Industries Ltd reported ₹184 Cr of revenue in the Jun 26 quarter, +10.2% year on year. That is the 9th straight quarter of year-on-year growth. Over 10 years it has compounded at 6.6% a year. The last full year, FY26, came in at ₹731 Cr. The last four reported quarters add to ₹748 Cr.

FY26 revenue came in at ₹731 Cr (+8.0% on the year), capping 10 years at 6.6% compound. The latest quarter (Jun 26) printed ₹184 Cr, +10.2% year on year — the 9th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +8.2% growth against the decade's 6.6% — the current year is running faster than its own long-run rate.

Acceleration check: trailing-twelve-month revenue grew +8.1% over the last 4 quarters against +10.6%/yr over the last 8 — stabilising; TTM profit +60.0% vs +16.9%/yr — accelerating.

FY26-Q4. revenue ₹195 Cr and profit ₹19 Cr as reported.

FY27-Q1. revenue ₹184 Cr and profit ₹14 Cr as reported.

Why-sources: our stock research file (22 August 2026) and the company’s own results for those quarters.

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.

Empire Industries Ltd's operating margin is 11.0% in the Jun 26 quarter, +2.0 percentage points against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged −2.0% to 18.0%. The current quarter sits inside that band.

Why this happened. Return on capital employed stands at 18 percent and return on equity at 15.6 percent. The stock trades at 11.9x trailing earnings and 1.9x book value of 586 rupees per share, representing the 14th percentile of its ten-year valuation range against a median of 16.7x.

The latest quarter's operating margin is 11.0%, +2.0 pp against the same quarter a year ago. Across 13 fiscal years the operating margin has ranged −2.0%–18.0%.

Why the margin moved: operating margin went +1.5 pp year on year while gross margin went −4.0 pp — the gain came mostly from the gross line: input costs and pricing.

FY26-Q4. revenue ₹195 Cr and profit ₹19 Cr as reported.

FY27-Q1. revenue ₹184 Cr and profit ₹14 Cr as reported.

Why-sources: our stock research file (22 August 2026) and the company’s own results for those quarters.

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

Empire Industries Ltd earned ₹14.0 Cr of net profit in the Jun 26 quarter, +40.0% year on year. It is the 2nd consecutive quarter of growth. Full-year FY26 profit was ₹52.0 Cr. The 10-year compound rate is 5.3%. That is 7.6% of the quarter's revenue. The same quarter a year earlier earned ₹10.0 Cr.

Jun 26 profit was ₹14.0 Cr, +40.0% year on year — the 2nd consecutive quarter of growth. On the full year, FY26 printed ₹52.0 Cr (+52.9%), and the 10-year compound rate is 5.3%.

Why profit moved: revenue contributed +10.2% and the margin +2.0 pp — the quarter was margin-led: most of the profit growth came from keeping more of each sale.

Pace comparison, last four quarters: profit +108.8% vs revenue +8.2%. Profit is growing faster than sales — fixed costs are being spread over a bigger base, and each extra rupee of revenue drops more to the bottom line.

FY26-Q4. revenue ₹195 Cr and profit ₹19 Cr as reported.

FY27-Q1. revenue ₹184 Cr and profit ₹14 Cr as reported.

Why-sources: our stock research file (22 August 2026) and the company’s own results for those quarters.

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 3 fiscal years 184% of Empire Industries Ltd's reported profit arrived as operating cash — the cash follows the profit. In FY26 that was ₹59.0 Cr of operating cash against ₹52.0 Cr of profit. After ₹15.0 Cr of capital spending, ₹44.0 Cr was left as free cash.

Why this happened. The company compressed its cash conversion cycle from 294 days in fiscal 2022 to 179 days in fiscal 2026. Inventory holding decreased by 94 days from 252 days to 158 days, while debtor days declined from 83 days to 68 days. This structural improvement liberated working capital and supported operating cash flow conversion of 1.13x net profit in fiscal 2026.

FY26: operating cash of ₹59.0 Cr against reported profit of ₹52.0 Cr, leaving free cash of ₹44.0 Cr after ₹15.0 Cr of capital spending. Across the last 3 fiscal years the conversion rate is 184% 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 184%: the cash cycle tightened 105 days between FY21 and FY26 — cash that used to wait in the cycle now reaches the bank sooner.

Router verdict: no single sink dominates — the next section checks both the working-capital cycle and the capital spending.

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).

Empire Industries Ltd's cash conversion cycle runs 179 days in FY26, down from 284 days in FY21. Capital spending ran ₹26.0 Cr over the last 3 years. At FY26 sales of ₹731 Cr each day of that cycle holds about ₹2.0 Cr, so roughly ₹358 Cr sits inside the business at any moment.

FY26: debtors at 68 days, inventory at 158 days — roughly 5.2 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of 179 days, tighter than FY21's 284.

The full loop: cash goes out to suppliers and production on day 0; stock waits 158 days to sell; customers pay about 68 days after that; and suppliers themselves are paid at 46 days — netting out to the 179-day cycle.

In money terms: at FY26 sales of ₹731 Cr, each day of the cycle holds about ₹2.0 Cr — so the 179-day loop keeps roughly ₹358 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹26.0 Cr over the last 3 fiscal years against ₹49.0 Cr of depreciation — spending at or below maintenance level. Capital work-in-progress stands at ₹2.0 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: neither the cycle nor the build-out is hoarding the cash — the machine is reasonably clean.

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.

Empire Industries Ltd earns a ROCE of 18% in FY26. That is up from a trough of 9% in FY21. A return-on-invested-capital spread against the cost of capital is not computable from what is held here. The wiring behind it is 7.1% net margin on 0.90× asset turns.

FY26 ROCE is 18%, recovered from a FY21 trough of 9% — the full ladder below shows the fall and the climb, undoctored.

Why the return is what it is — the wiring (FY26): 7.1% net margin × 0.90× asset turns × 2.32× balance-sheet leverage ≈ 14.8% on equity. Margin does its share; leverage is a meaningful part of the equation.

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.

Empire Industries Ltd carries ₹172 Cr of borrowings against ₹351 Cr of equity in FY26, a debt-to-equity of 0.49. Operating profit covers the interest bill 3×. Over 5 years borrowings went from ₹259 Cr to ₹172 Cr. Capital spending ran ₹26.0 Cr across the last 3 of those years.

Why this happened. Between fiscal 2022 and fiscal 2026, Empire Industries generated 358 Cr rupees in operating cash flow while requiring only 26 Cr rupees for capital expenditure. The resulting 332 Cr rupees of free cash flow enabled 87 Cr rupees of debt repayments, reducing total borrowings from 232 Cr rupees to 172 Cr rupees. Annual interest expense moderated from 10 Cr rupees in March 2026 to 5 Cr rupees in June 2026.

FY26: borrowings of ₹172 Cr against equity of ₹351 Cr — a debt-to-equity of 0.49. Operating profit covers the interest bill 3×. Over 5 years borrowings went from ₹259 Cr to ₹172 Cr while capital spending ran ₹26.0 Cr in just the last 3 — 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 Empire Industries Ltd moved a full percentage point over the last two years — the register is quiet. Promoters moved +0.0 points over the same window, to 72.5%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Domestic institutions: −0.4 points over 8 quarters to 6.0%; Promoters: +0.0 points over 8 quarters to 72.5%.

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.

Empire Industries 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.

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.

Empire Industries Ltd trades at 12.0× P/E, near the bottom of its own range — cheaper only 19% of the time. Its long-run median P/E is 16.6×, measured across 10.4 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 12.0× is near the bottom of its own range — cheaper only 19% of the time, against a long-run median of 16.6× measured over 10.4 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 +49.6% against a +3.2% price move — earnings outran the price, pushing the multiple DOWN its own range.

The price move, decomposed: over 5y, of the +8.2%/yr price move, ~+31.4%/yr came from earnings growth and ~−23.2 pp from the multiple (compressing); over 10y, of the −4.1%/yr price move, ~+6.3%/yr came from earnings growth and ~−10.4 pp from the multiple (compressing). The split is the honest approximate (price return minus earnings growth); it makes the rally itself visible instead of hiding it behind the percentile.

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

What the price assumes This reading works the multiple backwards. It asks one question: what yearly rate of profit growth is a buyer at the market price already paying for? The number is the growth rate that makes eleven years of profit — six years growing, then five fading — add up to that day's market price, once each year is discounted at 11% a year.

Solved at its 27 August 2026 price, Empire Industries Ltd was paying for profit growth of about 4.1% a year. Profit itself has compounded 5.3% a year over the past 10 years. Today the market pays 12.0× P/E, the 19th percentile of its own 10-year range.

What the two numbers say together. The multiple is low against its own past, and the growth the price is paying for is close to what this company has actually delivered.

How to hold this number: it is a reading of one day's price, taken on 27 August 2026, not a running figure — every other number on this page, the multiple included, is read off the live quote as of 11 September 2026. A higher price is paying for more growth and a lower price for less, so it moves whenever the price does, and this page does not restate it between measurements.

Stage: Turning around 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).

Empire Industries Ltd reads as turning around on its fundamental arc. Turning around — profit growth swung from −14.6% at the trough to +60.0%, a 3-quarter improving streak, ROCE holding at 18.0%. The read is built from 8 quarters across 4 curves, on partial evidence.

Why it matters: growth inflections are where re-ratings start — the curves say a turn is forming, so the question becomes whether the next quarters confirm it.

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.

A partial read: at least one curve is short, or the returns curve is not the computed quarterly series — hold the stage word a little more loosely.

4-Factor Sector Score

No sector-relative score — Empire Industries Ltd is not present in the sector comparison for Glass & Glass Products.

The score is a rank WITHIN a peer set: every metric is scored by percentile against the other members. Without the peer set there is no score to state, so none is invented here.

Frequently asked questions