Arihant Foundations & Housing Limited

Real Estate — Real Estate - Development · NSE

₹930.00+₹16.80 (+1.84%)

DalalBaazaar Score

71 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by moderate debt load, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Constructive picture on fundamentals. Profitability, leverage and growth metrics are broadly healthy on this snapshot. That said, valuation should still be checked against direct sector peers (not just the generic P/E bands used here) before treating this as a buy signal.

Understanding the Business

Company site ↗

The 60-second version of Arihant Foundations & Housing Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Arihant Foundations & Housing Limited, together with its subsidiaries, engages in the real estate development and related activities in India. It is involved in the construction of residential and commercial complexes and IT parks.

IndustryReal Estate - Development

SectorReal Estate

Employees108

Annual revenue₹412 Cr

How does it make money?

Turns over ₹412 Cr a year. Of every ₹100 of sales, about ₹14 reaches shareholders as profit, with ₹26 left at the operating level before interest, tax and depreciation. Each of its 108 employees supports ₹3.81 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin26.2%

Net margin14.3%

Revenue / employee₹3.81 Cr

Who are its competitors?

The closest listed comparisons in its industry are DLF LIMITED, GODREJ PROPERTIES LTD, OBEROI REALTY LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

DLF LIMITEDP/E 36.6x · ROE 10.3%

GODREJ PROPERTIES LTDP/E 30.2x · ROE 8.4%

OBEROI REALTY LIMITEDP/E 23.5x · ROE 14.7%

What is its competitive advantage?Some evidence

ROCE of 15.2% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE15.2%

ROE15.9%

Peer median ROE10.3%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +541% while net margin moved -8% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+541%

Margin effect-8%

DalalBaazaar Score

71/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.33 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

73/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

81/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

13.9x

0.7Y Median

18.0x

8 monthly readings · mean 17.8x · range 15.2x–24.4x

Sector Median

30.2x

median of 3 sector peers

🟢Current valuation is approximately 23% below its 0.7y median of 18.0x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 54% below the peer median of 30.2x.

vs. its own history

Cheap

18.0x median over 8 months · -23%

vs. sector peers

Cheap

30.2x median of 3 peers · -54%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

13.9x

P/B

2.50x

EV/EBITDA

13.6x

PEG

0.17

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well4

Return on equity is rising
ROE has improved from 5.6% to 15.9%.
Return on capital is rising
ROCE has improved from 10.3% to 15.2%.
Valuation below its historical average
At 13.9x the stock trades 23% below its own median of 18.0x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Margins are compressing
EBITDA margin has slipped from 52.6% to 26.2% over 3 years.
Debt is rising
Total debt is up 174% over 3 years — worth checking what it funded.

Red Flags

2 items require attention · 2 high

🔴Debt has risen sharplyFinancial
Total debt is up 174% over 3 years, from ₹175 Cr to ₹478 Cr.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 26.4 points, from 52.6% to 26.2%.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 23% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 54% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 52.6% to 26.2%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 4.4x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 64% a year✓ 85.8% CAGR
Latest reported year was 62.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 24%✓ 26.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 4.4x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✓ ₹32 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 12%✓ 15.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 11 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✗ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

7 good · 4 neutral · 0 weak

Market Cap

₹1,010 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

13.9x

Cheap

Cheap against the generic band

P/B Ratio

2.50x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹66.82

Profitable

Profitable on a per-share basis

ROE

15.9%

Strong

Strong capital efficiency

ROCE

15.2%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.08x

Moderate

Moderate leverage

Revenue Growth (YoY)

62.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

24.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹32 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹930

Operating Margin

26.8%

Good

Healthy core-business profitability

Net Margin

14.1%

Good

Strong bottom-line conversion

Current Ratio

2.33

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.33

Defensive

Steadier than the market

52W Range Position

75%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

916.5 / 955.8

Bearish alignment (short < long)

RSI (14)

56.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹64 Cr	₹124 Cr	₹199 Cr	₹412 Cr	+85.8%
EBITDA	₹34 Cr	₹44 Cr	₹77 Cr	₹108 Cr	+47.2%
EBITDA Margin	52.6%	35.3%	39.0%	26.2%	—
PAT (Net Profit)	₹10 Cr	₹14 Cr	₹43 Cr	₹59 Cr	+80.8%
EPS	₹11.6	₹14.82	₹46.88	₹59.17	+72.1%
ROE	5.6%	7.1%	13.7%	15.9%	—
ROCE	10.3%	12.0%	18.2%	15.2%	—
Total Debt	₹175 Cr	₹141 Cr	₹149 Cr	₹478 Cr	+40.0%
Free Cash Flow	₹147 Cr	₹2 Cr	-₹41 Cr	₹32 Cr	-40.0%

🟢 Revenue has grown at 85.8% a year over 3 years.

🟢 EBITDA has grown at 47.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 52.6% to 26.2% over 3 years (-26.4 pts).

🟢 PAT (Net Profit) has grown at 80.8% a year over 3 years.

🟢 EPS has grown at 72.1% a year over 3 years.

🟢 ROE has risen from 5.6% to 15.9% over 3 years (+10.3 pts).

🟢 ROCE has risen from 10.3% to 15.2% over 3 years (+4.8 pts).

🔴 Total Debt has grown at 40.0% a year over 3 years.

🔴 Free Cash Flow has shrunk at 40.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,018 Cr

Total Liabilities

₹646 Cr

Total Debt

₹478 Cr

Cash & Equivalents

₹17 Cr

Operating Cash Flow

₹49 Cr

Capex

-₹17 Cr

Shareholding (proxy)

Institutional Holding

6.3%

Insider Holding

62.6%

Corporate Actions

Ex-Dividend Date

21 Mar 2012

Peer Comparison

Company	P/E	ROE
DLF LIMITED	36.6x	10.3%
GODREJ PROPERTIES LTD	30.2x	8.4%
OBEROI REALTY LIMITED	23.5x	14.7%

Recent News

1 mixed5 general

Arihant Foundations & Housing Ltd is Rated Hold

MarketsMojo, 16 Oct

We Think You Should Be Aware Of Some Concerning Factors In Arihant Foundations & Housing's (NSE:ARIHANT) Earnings

Simply Wall Street, 06 JunResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Arihant Foundations & Housing passes all 9 resolutions at 33rd AGM

scanx.trade, 05 Oct

Wheels India Ltd leads losers in 'B' group

Business Standard, 01 Jul

Arihant Foundations & Housing (NSEI:ARIHANT) - Stock Analysis

Simply Wall Street, 06 Jun

Arihant Foundations & Housing Allots 2,45,000 Equity Shares Upon Conversion of Warrants

scanx.trade, 09 May

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong15.8/20

🟡Financial HealthAdequate12.3/20

🟢GrowthStrong14.9/20

🟢ProfitabilityStrong12/15

🟢ValuationAttractive11.8/15

🔴RiskHigh4.4/10

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 64% a year85.8% CAGR
✓EBITDA margin holds above 24%26.2%
✗Debt / EBITDA falls below 3x4.4x
✓Free cash flow remains positive₹32 Cr
✓ROCE stays above 12%15.2%