Valuation Update With 7 Day Price Move • Jun 03
Investor sentiment improves as stock rises 33% After last week's 33% share price gain to ₹297, the stock trades at a trailing P/E ratio of 51.5x. Average trailing P/E is 26x in the Capital Markets industry in India. Total returns to shareholders of 321% over the past three years. Reported Earnings • May 18
Full year 2026 earnings released: EPS: ₹5.92 (vs ₹22.80 in FY 2025) Full year 2026 results: EPS: ₹5.92 (down from ₹22.80 in FY 2025). Revenue: ₹3.83b (up 8.4% from FY 2025). Net income: ₹152.0m (down 73% from FY 2025). Profit margin: 4.0% (down from 16% in FY 2025). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has increased by 40% per year, which means it is tracking significantly ahead of earnings growth. Announcement • May 02
Emkay Global Financial Services Limited to Report Q4, 2026 Results on May 15, 2026 Emkay Global Financial Services Limited announced that they will report Q4, 2026 results on May 15, 2026 New Risk • Feb 04
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Indian stocks, typically moving 7.4% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (7.4% average weekly change). Profit margins are more than 30% lower than last year (5.8% net profit margin). Market cap is less than US$100m (₹6.69b market cap, or US$74.0m). Reported Earnings • Jan 28
Third quarter 2026 earnings released: EPS: ₹1.68 (vs ₹3.45 in 3Q 2025) Third quarter 2026 results: EPS: ₹1.68 (down from ₹3.45 in 3Q 2025). Revenue: ₹874.8m (up 7.6% from 3Q 2025). Net income: ₹43.0m (down 50% from 3Q 2025). Profit margin: 4.9% (down from 11% in 3Q 2025). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 33% per year but the company’s share price has increased by 55% per year, which means it is tracking significantly ahead of earnings growth. Board Change • Jan 19
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 1 experienced director. 5 highly experienced directors. Non-Executive Non-Independent Director Raunak Karwa was the last director to join the board, commencing their role in 2024. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Valuation Update With 7 Day Price Move • Jan 19
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to ₹296, the stock trades at a trailing P/E ratio of 34.4x. Average trailing P/E is 26x in the Capital Markets industry in India. Total returns to shareholders of 303% over the past three years. Announcement • Jan 15
Emkay Global Financial Services Limited to Report Q3, 2026 Results on Jan 27, 2026 Emkay Global Financial Services Limited announced that they will report Q3, 2026 results on Jan 27, 2026 Announcement • Jan 09
Emkay Global Financial Services Limited Appoints Ajay Mahajan as Independent Director Emkay Global Financial Services Limited appointed Mr. Ajay Mahajan (DIN: 05108777) as an Independent Director of the Company. Reported Earnings • Nov 01
Second quarter 2026 earnings released: EPS: ₹0.18 (vs ₹10.49 in 2Q 2025) Second quarter 2026 results: EPS: ₹0.18 (down from ₹10.49 in 2Q 2025). Revenue: ₹742.8m (down 34% from 2Q 2025). Net income: ₹4.60m (down 98% from 2Q 2025). Profit margin: 0.6% (down from 23% in 2Q 2025). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 41% per year but the company’s share price has increased by 57% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Oct 21
Emkay Global Financial Services Limited to Report Q3, 2026 Results on Oct 31, 2025 Emkay Global Financial Services Limited announced that they will report Q3, 2026 results on Oct 31, 2025 Announcement • Sep 24
Emkay Global Financial Services Limited announced that it expects to receive INR 568.8125 million in funding from Antique Securities Pvt Ltd Emkay Global Financial Services Limited announced private placement of up to 9,500,000 convertible warrants at an issue price of INR 59.875 for gross proceeds of INR 568,812,500 on September 22, 2025. The transaction includes participation from Antique Securities Private Limited (Ultimate beneficial owner-Kirti J Doshi and Hina K Doshi) for 75,00,000 warrants with a post issue share holding of 21.36%, Krishna Kumar Karwa for 12,50,000 warrants with a pre issue shareholding of 19.22% and post issue shareholding of 17.58% , Prakash Kacholia for 7,50,000 warrants with a pre issue shareholding of 18.55% and post issue shareholding of 15.67%. Each convertible warrant carrying a right to subscribe to 1 Equity Share within a period of 18 months from the date of allotment of the Warrants The warrants have an exercise price of INR 179.625. The transaction is approved by board of directors of the company and is subject to approval in Extra-Ordinary General Meeting (EGM) of the shareholders to be held on October 17, 2025. New Risk • Sep 22
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Indian stocks, typically moving 8.0% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (8.0% average weekly change). Market cap is less than US$100m (₹8.07b market cap, or US$91.4m). Board Change • Sep 20
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 2 experienced directors. 4 highly experienced directors. Non-Executive Non-Independent Director Raunak Karwa was the last director to join the board, commencing their role in 2024. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Valuation Update With 7 Day Price Move • Sep 18
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to ₹256, the stock trades at a trailing P/E ratio of 13.7x. Average trailing P/E is 23x in the Capital Markets industry in India. Total returns to shareholders of 202% over the past three years. Upcoming Dividend • Jul 28
Upcoming dividend of ₹4.00 per share Eligible shareholders must have bought the stock before 04 August 2025. Payment date: 10 September 2025. Payout ratio is a comfortable 6.6% but the company is not cash flow positive. Trailing yield: 0.6%. Lower than top quartile of Indian dividend payers (1.2%). Lower than average of industry peers (1.1%). Announcement • Jul 25
Emkay Global Financial Services Limited to Report Q1, 2026 Results on Aug 11, 2025 Emkay Global Financial Services Limited announced that they will report Q1, 2026 results on Aug 11, 2025 Reported Earnings • Jul 18
Full year 2025 earnings released: EPS: ₹22.80 (vs ₹12.53 in FY 2024) Full year 2025 results: EPS: ₹22.80 (up from ₹12.53 in FY 2024). Revenue: ₹3.54b (up 14% from FY 2024). Net income: ₹568.3m (up 84% from FY 2024). Profit margin: 16% (up from 10.0% in FY 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 40% per year but the company’s share price has increased by 52% per year, which means it is tracking significantly ahead of earnings growth. Declared Dividend • Jul 11
Dividend of ₹4.00 announced Shareholders will receive a dividend of ₹4.00. Ex-date: 4th August 2025 Payment date: 10th September 2025 Dividend yield will be 1.6%, which is higher than the industry average of 1.3%. Sustainability & Growth Dividend is covered by earnings (7% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 4.6% per year over the past 9 years. However, payments have been volatile during that time. Earnings per share has grown by 42% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Recent Insider Transactions • Jun 19
Insider recently sold ₹2.1m worth of stock On the 16th of June, Parag Morey sold around 9k shares on-market at roughly ₹245 per share. This transaction amounted to 24% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of ₹7.1m more than they bought in the last 12 months. Reported Earnings • May 22
Full year 2025 earnings released: EPS: ₹22.80 (vs ₹12.53 in FY 2024) Full year 2025 results: EPS: ₹22.80 (up from ₹12.53 in FY 2024). Revenue: ₹3.54b (up 14% from FY 2024). Net income: ₹568.3m (up 84% from FY 2024). Profit margin: 16% (up from 10.0% in FY 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 40% per year whereas the company’s share price has increased by 38% per year. Announcement • May 21
Emkay Global Financial Services Limited Proposes Special Dividend for the Financial Year 2024-25 Emkay Global Financial Services Limited at its board meeting held on May 21, 2025 recommended special dividend of INR 2.50 special dividend of face value of Rs.10/- each for the Financial Year 2024-25 to the shareholders at the ensuing Annual General Meeting of the Company. The dividend, if approved by the shareholders, will be paid within 30 days from the date of approval of the same by the shareholders. Valuation Update With 7 Day Price Move • May 12
Investor sentiment deteriorates as stock falls 17% After last week's 17% share price decline to ₹176, the stock trades at a trailing P/E ratio of 7.6x. Average trailing P/E is 19x in the Capital Markets industry in India. Total returns to shareholders of 95% over the past three years. Valuation Update With 7 Day Price Move • Mar 21
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to ₹206, the stock trades at a trailing P/E ratio of 8.9x. Average trailing P/E is 20x in the Capital Markets industry in India. Total returns to shareholders of 98% over the past three years. Reported Earnings • Jan 31
Third quarter 2025 earnings released: EPS: ₹3.45 (vs ₹4.98 in 3Q 2024) Third quarter 2025 results: EPS: ₹3.45 (down from ₹4.98 in 3Q 2024). Revenue: ₹820.4m (flat on 3Q 2024). Net income: ₹85.7m (down 30% from 3Q 2024). Profit margin: 10% (down from 15% in 3Q 2024). Over the last 3 years on average, earnings per share has increased by 23% per year whereas the company’s share price has increased by 25% per year. Announcement • Jan 16
Emkay Global Financial Services Limited to Report Q3, 2025 Results on Jan 30, 2025 Emkay Global Financial Services Limited announced that they will report Q3, 2025 results on Jan 30, 2025 Announcement • Dec 20
Emkay Global Financial Services Limited Announces Appointment of Directors Emkay Global Financial Services Limited announced through postal ballot, shareholders approved the appointment of Mr. A. Dhananjaya as an Independent Director of the Company. Appointment of Mr. Raunak Karwa as a Non-executive Director of the Company. Valuation Update With 7 Day Price Move • Nov 28
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to ₹342, the stock trades at a trailing P/E ratio of 13.6x. Average trailing P/E is 23x in the Capital Markets industry in India. Total returns to shareholders of 247% over the past three years. Reported Earnings • Oct 30
Second quarter 2025 earnings released: EPS: ₹10.49 (vs ₹3.79 in 2Q 2024) Second quarter 2025 results: EPS: ₹10.49 (up from ₹3.79 in 2Q 2024). Revenue: ₹1.13b (up 48% from 2Q 2024). Net income: ₹259.1m (up 177% from 2Q 2024). Profit margin: 23% (up from 12% in 2Q 2024). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has increased by 31% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Oct 28
Emkay Global Financial Services Limited Announces Board Appointments Emkay Global Financial Services Limited announced that Mr. A. Dhananjaya is appointed as an Additional Director designated as an Independent Director with effect from October 28, 2024, five years commencing from October 28, 2024 to October 27, 2029 and Mr. Raunak Krishnakumar Karwa is appointed as an Additional Director of the Company with effect from 28 October, 2024. Mr. A. Dhananjaya is B.Tech. and PGDM from IIM Bangalore. He is having a rich experience of 36 years with expertise in Risk Management, Portfolio Management, Compliance, Governance and Internal Controls. Out of which 14 years was in Bank of America N. A. as VP, Head Transaction Banking & Customer Service, 6 years in A BILLION AMRO Bank N.V. as SVP, Country Compliance Representative and 15 years in Aditya Birla Group company viz. Aditya Birla Capital as Chief Compliance & Risk Officer Secretary. He is presently on the Board of Old Bridge Mutual Fund Trustee Private Limited. Mr. Raunak Karwa is B. A. (Economics). He has been Managing Director & CEO of Finlearn Edutech Private Limited since 2021. He founded FinLearn Academy & Trade:able in January 2020 which was in the business of creating content and products for assisting retail market participants. He is having experience of 5 years as Analyst in Ernst & Young (Advisory- Financial Services) and ICICI Securities (Corporate Finance) He is presently on the Board of Emkay Wealth Advisory Limited, as a non- executive Director and Finlearn Edutech Private Limited as M.D. & CEO. Announcement • Oct 17
Emkay Global Financial Services Limited Appoints Sujit Kadakia as Chief Business Officer Emkay Global Financial Services Limited announced that Mr. Sujit Kadakia is appointed on 17th October, 2024 as Chief Business Officer of the Company in the category of Senior Management Personnel. Mr. Sujit Kadakia brings over 28 years' of extensive experience in financial services sector, held multiple roles across various locations within the Societe Generale Group. In his recent position, he served as Managing Director, CEO and Co-Head of the India Office at Societe General Securities India Private Limited. Mr. Sujit Kadakia is a graduate of Mumbai University and a Qualified Chartered Accountant. Mr. Sujit will play a key role in providing strategic direction and unlocking the full potential of business. Announcement • Oct 16
Emkay Global Financial Services Limited to Report Q2, 2025 Results on Oct 28, 2024 Emkay Global Financial Services Limited announced that they will report Q2, 2025 results on Oct 28, 2024 Valuation Update With 7 Day Price Move • Oct 03
Investor sentiment improves as stock rises 18% After last week's 18% share price gain to ₹240, the stock trades at a trailing P/E ratio of 12.9x. Average trailing P/E is 25x in the Capital Markets industry in India. Total returns to shareholders of 118% over the past three years. Recent Insider Transactions • Sep 06
Insider recently sold ₹2.1m worth of stock On the 3rd of September, Parag Morey sold around 12k shares on-market at roughly ₹181 per share. This transaction amounted to 56% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger sale from another insider worth ₹2.6m. Insiders have been net sellers, collectively disposing of ₹5.9m more than they bought in the last 12 months. Announcement • Aug 08
Emkay Global Financial Services Limited Approves Dividend for the Financial Year Ended 31St March, 2024 Emkay Global Financial Services Limited at its AGM held on August 8, 2024 approved Dividend at the rate of INR 1.50 per equity shares of the Company (15%) for the Financial Year ended 31st March, 2024. Upcoming Dividend • Jul 25
Upcoming dividend of ₹1.50 per share Eligible shareholders must have bought the stock before 01 August 2024. Payment date: 07 September 2024. Payout ratio is a comfortable 12% and this is well supported by cash flows. Trailing yield: 0.9%. Lower than top quartile of Indian dividend payers (1.1%). Lower than average of industry peers (1.4%). Announcement • Jul 23
Emkay Global Financial Services Limited to Report Q1, 2025 Results on Aug 08, 2024 Emkay Global Financial Services Limited announced that they will report Q1, 2025 results on Aug 08, 2024 Reported Earnings • Jul 14
Full year 2024 earnings released: EPS: ₹12.53 (vs ₹5.74 in FY 2023) Full year 2024 results: EPS: ₹12.53 (up from ₹5.74 in FY 2023). Revenue: ₹3.10b (up 47% from FY 2023). Net income: ₹308.9m (up 119% from FY 2023). Profit margin: 10.0% (up from 6.7% in FY 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 13% per year but the company’s share price has increased by 8% per year, which means it is well ahead of earnings. Declared Dividend • Jul 10
Dividend increased to ₹1.50 Dividend of ₹1.50 is 50% higher than last year. Ex-date: 1st August 2024 Payment date: 7th September 2024 Dividend yield will be 0.9%, which is lower than the industry average of 1.3%. Sustainability & Growth Dividend is well covered by both earnings (12% earnings payout ratio) and cash flows (27% cash payout ratio). The dividend has increased by an average of 5.2% per year over the past 8 years. However, payments have been volatile during that time. Earnings per share has grown by 29% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • Jul 09
Emkay Global Financial Services Limited, Annual General Meeting, Aug 08, 2024 Emkay Global Financial Services Limited, Annual General Meeting, Aug 08, 2024, at 16:30 Indian Standard Time. Valuation Update With 7 Day Price Move • Jun 10
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to ₹188, the stock trades at a trailing P/E ratio of 15x. Average trailing P/E is 21x in the Capital Markets industry in India. Total returns to shareholders of 146% over the past three years. Reported Earnings • May 18
Full year 2024 earnings released: EPS: ₹12.53 (vs ₹5.74 in FY 2023) Full year 2024 results: EPS: ₹12.53 (up from ₹5.74 in FY 2023). Revenue: ₹3.10b (up 47% from FY 2023). Net income: ₹308.9m (up 119% from FY 2023). Profit margin: 10.0% (up from 6.7% in FY 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 13% per year but the company’s share price has increased by 30% per year, which means it is well ahead of earnings. Announcement • May 05
Emkay Global Financial Services Limited to Report Q4, 2024 Results on May 16, 2024 Emkay Global Financial Services Limited announced that they will report Q4, 2024 results on May 16, 2024 Valuation Update With 7 Day Price Move • May 02
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₹174, the stock trades at a trailing P/E ratio of 28.7x. Average trailing P/E is 24x in the Capital Markets industry in India. Total returns to shareholders of 148% over the past three years. Valuation Update With 7 Day Price Move • Apr 17
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to ₹148, the stock trades at a trailing P/E ratio of 24.5x. Average trailing P/E is 23x in the Capital Markets industry in India. Total returns to shareholders of 134% over the past three years. New Risk • Apr 10
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of Indian stocks, typically moving 9.4% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Paying a dividend despite having no free cash flows. Share price has been volatile over the past 3 months (9.4% average weekly change). Market cap is less than US$100m (₹4.37b market cap, or US$52.5m). Valuation Update With 7 Day Price Move • Apr 02
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to ₹128, the stock trades at a trailing P/E ratio of 21.1x. Average trailing P/E is 22x in the Capital Markets industry in India. Total returns to shareholders of 101% over the past three years. Valuation Update With 7 Day Price Move • Mar 15
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to ₹110, the stock trades at a trailing P/E ratio of 18.1x. Average trailing P/E is 21x in the Capital Markets industry in India. Total returns to shareholders of 55% over the past three years. Reported Earnings • Feb 01
Third quarter 2024 earnings released: EPS: ₹4.98 (vs ₹3.56 in 3Q 2023) Third quarter 2024 results: EPS: ₹4.98 (up from ₹3.56 in 3Q 2023). Revenue: ₹821.1m (up 51% from 3Q 2023). Net income: ₹122.7m (up 40% from 3Q 2023). Profit margin: 15% (down from 16% in 3Q 2023). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 5% per year but the company’s share price has increased by 30% per year, which means it is well ahead of earnings. Announcement • Jan 12
Emkay Global Financial Services Limited to Report Q3, 2024 Results on Jan 31, 2024 Emkay Global Financial Services Limited announced that they will report Q3, 2024 results on Jan 31, 2024 Valuation Update With 7 Day Price Move • Dec 20
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₹139, the stock trades at a trailing P/E ratio of 29.8x. Average trailing P/E is 22x in the Capital Markets industry in India. Total returns to shareholders of 107% over the past three years. Reported Earnings • Nov 01
Second quarter 2024 earnings released: EPS: ₹3.79 (vs ₹2.49 in 2Q 2023) Second quarter 2024 results: EPS: ₹3.79 (up from ₹2.49 in 2Q 2023). Revenue: ₹770.1m (up 36% from 2Q 2023). Net income: ₹93.4m (up 52% from 2Q 2023). Profit margin: 12% (up from 11% in 2Q 2023). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 15% per year whereas the company’s share price has increased by 18% per year. Announcement • Oct 17
Emkay Global Financial Services Limited to Report Q2, 2023 Results on Oct 30, 2023 Emkay Global Financial Services Limited announced that they will report Q2, 2023 results on Oct 30, 2023 Valuation Update With 7 Day Price Move • Oct 12
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to ₹97.80, the stock trades at a trailing P/E ratio of 29.1x. Average trailing P/E is 24x in the Capital Markets industry in India. Total returns to shareholders of 78% over the past three years. Reported Earnings • Aug 13
First quarter 2024 earnings released: ₹0.53 loss per share (vs ₹1.85 profit in 1Q 2023) First quarter 2024 results: ₹0.53 loss per share (down from ₹1.85 profit in 1Q 2023). Revenue: ₹530.0m (up 2.0% from 1Q 2023). Net loss: ₹12.9m (down 128% from profit in 1Q 2023). Over the last 3 years on average, earnings per share has increased by 41% per year but the company’s share price has only increased by 15% per year, which means it is significantly lagging earnings growth. Announcement • Aug 11
Emkay Global Financial Services Limited Approves Dividend for the Financial Year Ended 31 March, 2023 Emkay Global Financial Services Limited at its 29th annual general meeting held on August 10, 2023, Approved Dividend at the rate of INR 1 per equity shares of the Company (10%) for the Financial Year ended 31 March, 2023. Upcoming Dividend • Jul 27
Upcoming dividend of ₹1.00 per share at 1.2% yield Eligible shareholders must have bought the stock before 03 August 2023. Payment date: 09 September 2023. Payout ratio is a comfortable 17% but the company is not cash flow positive. Trailing yield: 1.2%. Lower than top quartile of Indian dividend payers (1.5%). Lower than average of industry peers (2.0%). Announcement • Jul 26
Emkay Global Financial Services Limited to Report Q1, 2024 Results on Aug 10, 2023 Emkay Global Financial Services Limited announced that they will report Q1, 2024 results on Aug 10, 2023 New Risk • Jul 21
New major risk - Earnings quality The company has a high level of non-cash earnings. Accrual ratio: 67% This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management. Currently, the following risks have been identified for the company: Major Risk High level of non-cash earnings (67% accrual ratio). Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (6.7% net profit margin). Market cap is less than US$100m (₹1.86b market cap, or US$22.7m). Announcement • Jul 12
Emkay Global Financial Services Limited, Annual General Meeting, Aug 10, 2023 Emkay Global Financial Services Limited, Annual General Meeting, Aug 10, 2023, at 16:30 Indian Standard Time. Reported Earnings • May 17
Full year 2023 earnings released: EPS: ₹5.73 (vs ₹13.75 in FY 2022) Full year 2023 results: EPS: ₹5.73 (down from ₹13.75 in FY 2022). Revenue: ₹2.11b (down 22% from FY 2022). Net income: ₹141.3m (down 58% from FY 2022). Profit margin: 6.7% (down from 13% in FY 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 65% per year but the company’s share price has only increased by 27% per year, which means it is significantly lagging earnings growth. Announcement • May 16
Emkay Global Financial Services Limited Recommends Dividend on Equity Share Capital for the Financial Year 2022-23 Emkay Global Financial Services Limited Recommended Dividend on Equity Share Capital for the Financial year 2022-23 at the rate of 10% (INR 1/-) per equity shares of face value of INR 10/- each to the shareholders at the upcoming Annual General Meeting of the Company. The said dividend, if approved by the shareholders, will be paid within 30 days from the date of approval of the same by the shareholders. Valuation Update With 7 Day Price Move • Apr 20
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to ₹80.20, the stock trades at a trailing P/E ratio of 13.4x. Average trailing P/E is 20x in the Capital Markets industry in India. Total returns to shareholders of 116% over the past three years. Reported Earnings • Jan 31
Third quarter 2023 earnings released: EPS: ₹3.55 (vs ₹7.86 in 3Q 2022) Third quarter 2023 results: EPS: ₹3.55 (down from ₹7.86 in 3Q 2022). Revenue: ₹550.4m (down 40% from 3Q 2022). Net income: ₹87.6m (down 55% from 3Q 2022). Profit margin: 16% (down from 21% in 3Q 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 77% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Announcement • Jan 13
Emkay Global Financial Services Limited to Report Q3, 2023 Results on Jan 30, 2023 Emkay Global Financial Services Limited announced that they will report Q3, 2023 results on Jan 30, 2023 Board Change • Nov 16
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 2 experienced directors. 5 highly experienced directors. Independent Director Hutokshi Wadia was the last director to join the board, commencing their role in 2022. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Nov 08
Second quarter 2023 earnings released: EPS: ₹2.49 (vs ₹3.85 in 2Q 2022) Second quarter 2023 results: EPS: ₹2.49 (down from ₹3.85 in 2Q 2022). Revenue: ₹570.8m (down 21% from 2Q 2022). Net income: ₹61.5m (down 35% from 2Q 2022). Profit margin: 11% (down from 13% in 2Q 2022). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 95% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jul 22
Upcoming dividend of ₹1.25 per share Eligible shareholders must have bought the stock before 29 July 2022. Payment date: 07 September 2022. Payout ratio is a comfortable 9.1% and this is well supported by cash flows. Trailing yield: 1.7%. Lower than top quartile of Indian dividend payers (1.8%). Lower than average of industry peers (2.4%). Reported Earnings • Jul 17
Full year 2022 earnings released Full year 2022 results: Net income: ₹338.5m (up 204% from FY 2021). Reported Earnings • May 28
Full year 2022 earnings released: EPS: ₹13.74 (vs ₹4.52 in FY 2021) Full year 2022 results: EPS: ₹13.74 (up from ₹4.52 in FY 2021). Revenue: ₹2.69b (up 68% from FY 2021). Net income: ₹338.5m (up 204% from FY 2021). Profit margin: 13% (up from 7.0% in FY 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 80% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • May 19
Investor sentiment improved over the past week After last week's 21% share price gain to ₹110, the stock trades at a trailing P/E ratio of 5.3x. Average trailing P/E is 17x in the Capital Markets industry in India. Total returns to shareholders of 31% over the past three years. Board Change • Apr 27
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 3 experienced directors. 5 highly experienced directors. Non Executive Independent Director Bharat Singh was the last director to join the board, commencing their role in 2018. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Jan 26
Third quarter 2022 earnings: EPS in line with analyst expectations despite revenue beat Third quarter 2022 results: EPS: ₹7.86 (up from ₹0.53 in 3Q 2021). Revenue: ₹923.9m (up 150% from 3Q 2021). Net income: ₹193.6m (up ₹180.5m from 3Q 2021). Profit margin: 21% (up from 3.5% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 8.2%. Over the last 3 years on average, earnings per share has increased by 52% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 02
Second quarter 2022 earnings released: EPS ₹3.82 (vs ₹1.44 in 2Q 2021) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2022 results: Revenue: ₹730.3m (up 79% from 2Q 2021). Net income: ₹93.9m (up 164% from 2Q 2021). Profit margin: 13% (up from 8.7% in 2Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has fallen by 6% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Upcoming Dividend • Jul 22
Upcoming dividend of ₹1.00 per share Eligible shareholders must have bought the stock before 29 July 2021. Payment date: 05 September 2021. Trailing yield: 0.8%. Lower than top quartile of Indian dividend payers (1.5%). Lower than average of industry peers (1.5%). Valuation Update With 7 Day Price Move • Jul 20
Investor sentiment improved over the past week After last week's 31% share price gain to ₹135, the stock trades at a trailing P/E ratio of 29.9x. Average trailing P/E is 18x in the Capital Markets industry in India. Total returns to shareholders of 11% over the past three years. Reported Earnings • Jul 16
Full year 2021 earnings released: EPS ₹4.52 (vs ₹5.03 loss in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: ₹1.60b (up 25% from FY 2020). Net income: ₹111.4m (up ₹235.2m from FY 2020). Profit margin: 7.0% (up from net loss in FY 2020). The move to profitability was driven by higher revenue. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 92 percentage points per year, which is a significant difference in performance. Valuation Update With 7 Day Price Move • Jun 30
Investor sentiment improved over the past week After last week's 15% share price gain to ₹90.50, the stock trades at a trailing P/E ratio of 20x. Average trailing P/E is 15x in the Capital Markets industry in India. Total loss to shareholders of 19% over the past three years. Reported Earnings • May 21
Full year 2021 earnings released: EPS ₹4.52 (vs ₹5.13 loss in FY 2020) The company reported a strong full year result with improved earnings, revenues and profit margins. Full year 2021 results: Revenue: ₹1.60b (up 25% from FY 2020). Net income: ₹111.4m (up ₹237.7m from FY 2020). Profit margin: 7.0% (up from net loss in FY 2020). The move to profitability was driven by higher revenue. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 70 percentage points per year, which is a significant difference in performance.