NSEI:EMMBI

Stock Analysis Report

Executive Summary

Emmbi Industries Limited manufactures and sells flexible intermediate bulk containers (FIBC) and woven sacks, and other woven polymer based products in India and internationally.

Rewards

PE ratio (11.8x) is below the Indian market (13.8x)

Earnings have grown 21.6% per year over the past 5 years

Risk Analysis

Has a high level of debt

Does not have a meaningful market cap (₹2B)



Snowflake Analysis

Excellent balance sheet with questionable track record.


Similar Companies

Share Price & News

How has Emmbi Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EMMBI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

18.0%

EMMBI

0.8%

IN Packaging

-0.6%

IN Market


1 Year Return

6.6%

EMMBI

1.0%

IN Packaging

7.1%

IN Market

Return vs Industry: EMMBI exceeded the Indian Packaging industry which returned 2.6% over the past year.

Return vs Market: EMMBI matched the Indian Market which returned 7.2% over the past year.


Shareholder returns

EMMBIIndustryMarket
7 Day18.0%0.8%-0.6%
30 Day30.3%8.4%1.6%
90 Day9.3%19.4%5.1%
1 Year7.0%6.6%2.4%1.0%9.1%7.1%
3 Year-7.9%-8.9%-7.5%-10.2%31.1%24.2%
5 Year708.4%690.0%40.4%34.2%33.8%21.8%

Price Volatility Vs. Market

How volatile is Emmbi Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Emmbi Industries undervalued compared to its fair value and its price relative to the market?

13.11x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EMMBI (₹111.2) is trading above our estimate of fair value (₹5.42)

Significantly Below Fair Value: EMMBI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: EMMBI is poor value based on its PE Ratio (11.8x) compared to the Packaging industry average (8x).

PE vs Market: EMMBI is good value based on its PE Ratio (11.8x) compared to the Indian market (13.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate EMMBI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: EMMBI is overvalued based on its PB Ratio (1.6x) compared to the IN Packaging industry average (0.8x).


Next Steps

Future Growth

How is Emmbi Industries forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.0%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Emmbi Industries has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Emmbi Industries performed over the past 5 years?

21.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EMMBI has high quality earnings.

Growing Profit Margin: EMMBI's current net profit margins (5.6%) are lower than last year (6%).


Past Earnings Growth Analysis

Earnings Trend: EMMBI's earnings have grown significantly by 21.6% per year over the past 5 years.

Accelerating Growth: EMMBI's earnings growth over the past year (0.9%) is below its 5-year average (21.6% per year).

Earnings vs Industry: EMMBI earnings growth over the past year (0.9%) underperformed the Packaging industry 9.4%.


Return on Equity

High ROE: EMMBI's Return on Equity (13.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Emmbi Industries's financial position?


Financial Position Analysis

Short Term Liabilities: EMMBI's short term assets (₹1.4B) exceed its short term liabilities (₹1.1B).

Long Term Liabilities: EMMBI's short term assets (₹1.4B) exceed its long term liabilities (₹561.7M).


Debt to Equity History and Analysis

Debt Level: EMMBI's debt to equity ratio (94.1%) is considered high.

Reducing Debt: EMMBI's debt to equity ratio has reduced from 125% to 94.1% over the past 5 years.

Debt Coverage: EMMBI's debt is well covered by operating cash flow (20.1%).

Interest Coverage: EMMBI's interest payments on its debt are well covered by EBIT (3.2x coverage).


Balance Sheet

Inventory Level: EMMBI has a high level of physical assets or inventory.

Debt Coverage by Assets: EMMBI's debt is covered by short term assets (assets are 1.3x debt).


Next Steps

Dividend

What is Emmbi Industries's current dividend yield, its reliability and sustainability?

0.41%

Current Dividend Yield


Dividend Yield vs Market

company0.4%marketbottom25%0.6%markettop25%2.3%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: EMMBI's dividend (0.45%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.56%).

High Dividend: EMMBI's dividend (0.45%) is low compared to the top 25% of dividend payers in the Indian market (2.31%).


Stability and Growth of Payments

Stable Dividend: EMMBI has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: EMMBI's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (5.3%), EMMBI's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Emmbi Industries's salary, the management and board of directors tenure and is there insider trading?

15.8yrs

Average management tenure


CEO

Makrand Appalwar (50yo)

15.8yrs

Tenure

₹7,839,600

Compensation

Mr. Makrand Moreshwar Appalwar serves as an Executive Chairman and Promoter at Emmbi Industries Limited and has been its Managing Director since April 1, 2004. He is Founder of Emmbi Industries Limited. Mr ...


CEO Compensation Analysis

Compensation vs Market: Makrand's total compensation ($USD110.63K) is above average for companies of similar size in the Indian market ($USD50.75K).

Compensation vs Earnings: Makrand's compensation has been consistent with company performance over the past year.


Management Age and Tenure

15.8yrs

Average Tenure

50yo

Average Age

Experienced Management: EMMBI's management team is seasoned and experienced (15.8 years average tenure).


Board Age and Tenure

9.1yrs

Average Tenure

50yo

Average Age

Experienced Board: EMMBI's board of directors are considered experienced (9.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Makrand Appalwar (50yo)

    Founder

    • Tenure: 15.8yrs
    • Compensation: ₹7.84m
  • Rinku Appalwar (48yo)

    Founder

    • Tenure: 25.2yrs
    • Compensation: ₹7.24m
  • Anil Amonkar (68yo)

    Vice President of Domestic

    • Tenure: 11.7yrs
    • Compensation: ₹480.00k
  • Vijay Bisne (49yo)

    General Manager of Production

    • Tenure: 23.4yrs
    • Compensation: ₹487.00k
  • Toyesh Garg (50yo)

    Manager of Sales – Exports

    • Tenure: 11.1yrs
    • Compensation: ₹300.00k
  • Mahesh Shastri (48yo)

    General Manager of Commercial

    • Tenure: 23.8yrs
    • Compensation: ₹517.00k
  • Kaushal Patvi

    Compliance Officer & Company Secretary

    • Compensation: ₹1.18m
  • S. Sastry

    President of Works

    • Krishnan Subramanian (50yo)

      Whole-time Director

      • Tenure: 1.7yrs

    Board Members

    • Makrand Appalwar (50yo)

      Founder

      • Tenure: 15.8yrs
      • Compensation: ₹7.84m
    • Rinku Appalwar (48yo)

      Founder

      • Tenure: 25.2yrs
      • Compensation: ₹7.24m
    • Venkatesh Joshi (63yo)

      Non-Executive Independent Director

      • Tenure: 9.1yrs
      • Compensation: ₹66.00k
    • Prashant Lohiya (49yo)

      Non-Executive Independent Director

      • Tenure: 9.7yrs
      • Compensation: ₹88.00k
    • Rama Krishnan (84yo)

      Non-Executive Independent Director

      • Tenure: 1.8yrs
      • Compensation: ₹66.00k
    • Krishnan Subramanian (50yo)

      Whole-time Director

      • Tenure: 1.7yrs

    Company Information

    Emmbi Industries Limited's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Emmbi Industries Limited
    • Ticker: EMMBI
    • Exchange: NSEI
    • Founded: 1994
    • Industry: Paper Packaging
    • Sector: Materials
    • Market Cap: ₹2.250b
    • Shares outstanding: 17.69m
    • Website: https://www.emmbi.com

    Location

    • Emmbi Industries Limited
    • Valecha Chambers
    • 3rd Floor
    • Mumbai
    • Maharashtra
    • 400053
    • India

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    533161BSE (Mumbai Stock Exchange)YesEquity SharesININRFeb 2010
    EMMBINSEI (National Stock Exchange of India)YesEquity SharesININRFeb 2010

    Biography

    Emmbi Industries Limited manufactures and sells flexible intermediate bulk containers (FIBC) and woven sacks, and other woven polymer based products in India and internationally. It operates in four segments: Specialty Packaging, Advance Composites, Water Conservation, and Agri Products. The company provides specialty FIBCs, including de-watering, Q baffle, form stable, conductive, palletless, and UN certified FIBCs; and standard FIBCs, such as single and two loop bags, circular cross corners, tunnel loops, builder bags, slings, and U+2 panels. It also offers container liners, garden waste bags, automobile covers, and compressible bale wraps; and BOPP film coated, valve mouth plastic woven, and PP and PE woven sacks, as well as paper replacement coated PP bags. In addition, the company provides aquasave water conservation products comprising flexible water tanks, and canal and pond liners; and specialty films and fabrics consisting of film liner barrier and moisture proofing products, geo textiles, ground covers, silt fences, sandwich fabrics, and fire retardant scaffoldings. Further, it offers asbestos removal products, including small bags and FIBCs, container liners, and PE bags for asbestos; and anti-corrosive VCI packaging products, such as woven PE sheets, blown PE films, and VCI PE bags. Additionally, the company provides crop protection products consisting of hose pipes, shed nets, silage bags, mulch films, crop covers, and tarpaulins. The company sells its products through distributors, as well as directly through its Website. Emmbi Industries Limited also exports its products. The company was formerly known as Emmbi Polyarns Limited and changed its name to Emmbi Industries Limited in July 2013. Emmbi Industries Limited was founded in 1994 and is headquartered in Mumbai, India. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/21 12:56
    End of Day Share Price2020/01/20 00:00
    Earnings2019/09/30
    Annual Earnings2019/03/31


    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.