EMS Ltd

Profile Highlights

• Order pipeline: The profile lists a bid pipeline of INR 6,470 Cr. and a 2-3 year order-execution timeline.
• Geographic expansion: The company expanded into West Bengal with an ~INR 700 Cr. order from Kolkata Municipal Corporation.

Key Risks

• Concentration and collections: The report flags project and client concentration and high working-capital intensity with ageing receivables.
• Financial and governance monitorables: It notes an independent CFO had yet to be appointed to the board, an equity commitment for a HAM project, and contractual bank guarantees.

Standard disclosures

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• We or our associates have managed or co-managed public offering of securities for the subject company(ies) in the past12 months: No
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• Nature of financial interest in subject company, if any –Nil
• We, our associates or Research Analyst have actual/beneficial ownership of 1% or more securities of the subject company (ies) at the end of the month immediately preceding the date of publication of Research Report – No
• Subject company (ies) may have been client during twelve months preceding the date of distribution of the research report-No.
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Minerva Capital Research Solutions is an independent investment advisory firm founded by Nishant Gupta(SEBI registration no. INH000018896).

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Rating rationale

Minerva Capital Research Solutions endeavors to provide objective opinions and recommendations. Ratings are assigned to stocks according to their fair value vs current market price and then categorizes them as Buy, Hold, Reduce, Sell. The performance horizon is one year unless specified and fair value is defined as analyst’s valuation for a stock.

• Buy:> 15%
• Hold: -5% to 15%
• Reduce: -15% to -5%
• Sell: <-15%