Author: Prashant Marathe
Date Published: May 21, 2025
📉 At a Glance
- Q4 Sales: ₹71.04 Cr — lowest in 5 quarters
- PBT: -₹4.86 Cr — straight up loss
- CMP: ₹209
- EduFair Value: Under revision ⚠️
👉 Verdict: This isn’t undervalued. It’s under distress.
🧾 About the Company
Emkay Global Financial Services Ltd is a full-service brokerage and research house that once looked like a mini-Motilal. Now?
It’s looking like 2023 Angel One’s evil twin — less volume, no hype, and plenty of red ink.
They offer:
- Equity & Derivatives Broking
- Wealth Management
- Institutional Research
- Investment Banking
But none of that matters if revenues dry up and profits go poof.
🧑💼 Management
- Krishna Kumar Karwa, the man at the helm, has built a solid legacy.
- But even solid legacies can’t stop a market-wide volume crunch + operational squeeze.
🧾 Q4 FY25 Highlights
| Metric | ₹ Cr |
|---|---|
| Net Sales | 71.04 |
| Average of Last 4 Qtrs | 89.49 |
| PBT (Ex-Other Income) | -4.86 |
| Avg PBT Earlier | 11.78 |
| Operating Margin | 0.15% (😂) |
🧠 EduInvesting Take
“This is the kind of quarter that makes investors uninstall their portfolio tracker.”
Emkay is clearly facing:
- 🧯 Revenue collapse
- 🩸 Operating margin crash
- 🧾 Profit erosion
- 🥶 Market apathy
While the long-term story might still be salvageable, this quarter is a red flag waving from Dalal Street’s 5th floor.
⚠️ Risks & Red Flags
- 📉 Declining sales, even in a bullish market
- 🩺 Margins near-zero = no buffer
- 🤷♂️ Institutional fatigue = no FOMO
- 🚨 Re-rating in progress — and not in a good way
💸 CMP vs Reality Check
| Metric | Value |
|---|---|
| CMP | ₹209 |
| Fair Value | 🔴 UNDER REVIEW 🔴 |
| Upside | ❌ Not credible right now |
| Recovery Time | Depends on market cycles + cost control |
🏁 Final Word
Emkay looked promising. But Q4 FY25 shows the underbelly:
- Weak top-line
- Loss-making operations
- Almost no margin of safety
Edu Verdict: Avoid for now. Re-enter only when recovery is visible. This is no longer a hidden gem — it’s a slippery rock.
