Electronics Mart India Limited (“EMIL”) is the 4th largest electronic retailer with a diversified product offering (6000 SKUs across product categories from more than 70 consumer durable and electronics brand) and is strongly placed in the southern region (AP and Telengana). EMIL has been increasing its market presence and geographic base with cluster-based expansion while its strategically located logistics & warehousing facilities provides swift turnaround. Its expansions in Delhi/NCR offers strong growth potential (opportunity size of ₹220bn). Management focus remains on premium products and strong product depth with only top brands in various categories. Further its strategy remains clear that no private labels shall be added to avoid discounting and inventory issues while only focussing on retailing top brands as it has strong relationships with top brands in all electronics categories.
OutlookValuations are reasonable compared to competition and currently trades at 15.5x FY25 PE and 6.8x EV/ EBITDA. We Initiate with a Buy rating and PT of ₹86.
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