ICICI Direct IPO report on Electronics Mart India
Electronics Mart India (EMIL) is the fourth largest and one of the fastest growing consumer durables and electronics retailers in India. EMIL is the largest regional organised player in the southern region in revenue terms with dominance in Telangana and Andhra Pradesh • The company registered a healthy revenue CAGR of ~17.9% in FY16-21. EMIL has remained profitable even during the pandemic while its EBITDA margin has been in the range of 6-7% over FY20-22.
Valuation and Outlook
At upper price band, EML is valued at 0.6x EV/sales and 22x P/E of FY22. We assign a SUBSCRIBE rating as valuations appear reasonable considering the company’s strong and sustainable growth prospects and continued focus on maintaining balance of revenue growth with consistent margins in line with industry peers.
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