I was disappointed with the recent results, plus fishy practices by promoters.
Finally, I have overcome that false optimism of my mind and exited this with a good loss.
I had high hopes with this, but alas.
I have booked partial loss today around 315 levels.
O don’t know if it makes sense to move out at this point.
Many negative factors are in the price:
Silver lining is market isn’t expecting any fireworks in q4, since guidance is softer for q4, any uptick in q4 might surprise it.
But given the history of management guidance for last few quarters, they seem to disappoint every guidance on the downside quarter after quarter.
Im stuck with big loss here too, but post listening to concall, I’m considering watching out for the next 2qs of results and see if that pans out with the guidance given.
But till then and after that what’s the amount of further drawdown keeps me impatient
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32b1d8dd-de7c-4784-ac91-6888455472b0.pdf (243.5 KB)
just a few days ago in earnings call, they stated they are not facing any cash issues and they have no plans to raise money, and now filed to the exchanges they are holding Board meet to approve fundraise?
What to make of it ?
they have said previously also so many things which is not reflecting in results. its looks like they were just enjoying the bullmarket by giving unrealistic numbers.
Holding from high levels..
Water infrastructure stocks have surged after the Cabinet extended/boosted the Jal Jeevan Mission, with EMS specifically mentioned as hitting the 20% upper circuit.
The move refers to a Union Cabinet decision on Jal Jeevan Mission 2.0 that extended the scheme to 2028 with a much larger outlay, which triggered a broad rally in water‑infra names including EMS, specifically cited as gaining ~20%.
What the Cabinet approved
- Jal Jeevan Mission (JJM) has been extended until December 2028 under “JJM 2.0”.
- Total outlay approved is about ₹8.69 lakh crore, with the central government’s share raised to about ₹3.59 lakh crore from roughly ₹2.08 lakh crore in 2019–20.
- Focus is shifting from just laying infrastructure to service delivery: ensuring sustainable, continuous rural tap water supply, governance, and O&M (operations and maintenance).
Market reaction and EMS mention
- After this decision, pump, pipe, and water EPC stocks jumped up to 20% intraday.
- CNBC‑TV18 and other outlets reported that shares of Denta Water & Infra Solutions and EMS Limited were trading nearly 20% higher on the news, putting them among the top small‑cap gainers.
- Broader beneficiaries highlighted include companies in pipes, pumps, construction, and water treatment, with lists of ~20–25 names expected to gain from the expanded JJM spend. EMS is grouped within this “water infrastructure/water management” basket.
Why this matters for EMS specifically
- EMS operates as a water and wastewater management EPC and turnkey services company (collection, treatment, disposal), so incremental orders under JJM 2.0 and better payment discipline directly improve its addressable opportunity and receivables visibility.
- Earlier, central funding for JJM had been partially halted in late 2025 due to corruption findings and payment issues; the renewed approval and higher allocation improve sentiment for EPC contractors, which is why the stock reacted sharply on the extension headline.
There is no precise numerical break‑up published that cleanly tags EMS’s order book as “Jal Jeevan Mission (JJM) orders”, but we can infer exposure directionally from project type and counterparties.
Order book size and mix (current)
- Recent research notes put EMS’s unexecuted order book at about ₹2,350–2,400 crore (₹2,388 crore in one January 2026 note).
- As of 31 March 2025, order book was ₹2,236 crore, with about 75% in water & wastewater projects, 19% buildings, and 6% power; 23% of the book is O&M contracts.
- Management and IPO commentary consistently say “almost all” projects are government funded via state bodies, with key schemes including Jal Jeevan Mission, National Mission for Clean Ganga, and community drinking water programmes.
Direct clues to JJM‑linked exposure
- In pre‑IPO commentary, EMS highlighted that government missions like Jal Jeevan Mission and Clean Ganga are expected to support a larger project pipeline for companies in this niche, and that most of its order book is made up of such water/sewerage schemes funded by multilateral agencies via state Jal Nigams.
- A large share of ongoing and new orders are from UP Jal Nigam (Urban) and similar bodies (e.g., Fatehpur sewerage project worth ₹183.81 crore, Ayodhya sewerage scheme ₹98.79 crore, and two UP Jal Nigam schemes totalling about ₹203 crore).
- These state‑level water supply and sewerage schemes are typical execution vehicles for JJM and related urban/rural water initiatives, so while the tender documents may not be branded “JJM” in headlines, they are largely part of the same funding ecosystem.
Reasonable quantitative inference
Putting this together:
- Roughly 70–80% of the order book is water and wastewater; most of that is government/state‑body funded; and management explicitly cites JJM as a key driver of the pipeline.
- A conservative working assumption is that at least half of the total order book (i.e., ₹1,100–1,200 crore out of ~₹2,300–2,400 crore) is directly or indirectly linked to JJM and allied central water missions, with upside to that estimate as new bids convert post JJM 2.0.
What’s missing / disclosure gaps
- Neither recent conference‑call summaries nor public filings break the order book into “JJM vs non‑JJM” buckets; they stick to sector (water vs building) and geography splits.
- For an exact figure you would need management commentary or project‑wise disclosures (tender docs, state‑government scheme tags), which are not fully available in public right now.
EMS Limited, which operates primarily in the water and sewerage infrastructure sector in India, held its board meeting on May 29, 2026, to finalize its audited financial results for FY25-26 and recommend a final dividend of ₹1.50 per share.
The outlook for the company is a classic mix of short-term financial headwinds contrasted against strong sector macros and a solid fundamental foundation.
Here is a breakdown of how the stock is looking post-results:
1. Near-Term Financial Pressure & Margin Compression
The core challenge for EMS Ltd. recently has been a sequential slowdown in operational performance.
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Revenue and Profit Slump: Looking at the quarterly trajectory leading up to the end of the fiscal year, revenue and Profit After Tax (PAT) have seen downward pressure. For instance, net sales dropped to ₹83.66 crore in the final quarter compared to higher run-rates earlier in the year.
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Margin Impact: Lower revenue execution has squeezed the net profit margins downward compared to the highly lucrative 20%+ margins the company enjoyed in previous fiscal cycles.
2. Strong Fundamental Anchors
Despite the recent earnings dip, the company’s structural balance sheet remains highly resilient:
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Low Debt & High Efficiency: EMS Ltd. continues to boast an incredibly clean balance sheet with a near-zero Debt-to-Equity ratio (0.01) and an exceptional Return on Capital Employed (ROCE) averaging above 28%.
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Liquidity: The financial position is highly liquid, meaning the company isn’t facing crunch points to fund ongoing infrastructure execution.
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Valuation Advantage: Due to a steep correction in the stock price over the last year (down over 40%), it is currently trading at a highly compressed Trailing Twelve Month (TTM) P/E ratio of around 13.6x—well below the broader Indian market average of ~23x. Many fundamental screener models estimate the stock is trading at a roughly 30% discount to its intrinsic fair value.
3. Key Risks to Monitor
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Promoter Pledging: A critical metric to watch is the promoter pledge level, which sits at 21.95%. While still under the standard 25% warning threshold, any further increase could worry institutional investors.
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High Volatility: The stock has experienced sharp weekly swings (averaging close to 8-9%), indicating that it is currently being heavily driven by market sentiment rather than long-term accumulation .
The Macro Outlook: The ultimate catalyst for EMS Ltd. remains India’s aggressive government spending on water infrastructure, sewage treatment, and clean water initiatives (like the Jal Jeevan Mission). If the company successfully converts its existing order book into faster execution over the next few quarters, the heavily discounted valuation offers room for a fundamental re-rating.
There are so many corporate governance issues with company many things have been already mentioned by others and I would also like to add few more which others missed :
1st CFO resigned and MD himself becomes CFO of the company. Ok if someone gives argument of why MD can’t be CFO I would say they can be but not in this case where MD has done Civil Engineering and then MBA in International Business.
2nd The Auditor resigned stating “ pre-occupation in other assignments “ basically due to workload in August 2025 and now appointed back as Strategic Financial Consultant in May 2026
Adding to all these things somehow from the time market started crashing ( late 2024 ) company’s growth, margins started falling. I was traveling and heard someone discussing about same company they were saying that if bull market starts again the company will again starts showing good results.