Arvind SmartSpaces Limited

Real Estate — Real Estate - Development · NSE

₹606.20−₹5.10 (−0.83%)

DalalBaazaar Score

73 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Arvind SmartSpaces Limited, together with its subsidiaries, engages in the development of real estate projects in India.

IndustryReal Estate - Development

SectorReal Estate

Employees523

Annual revenue₹559 Cr

How does it make money?

Turns over ₹559 Cr a year. Of every ₹100 of sales, about ₹17 reaches shareholders as profit, with ₹29 left at the operating level before interest, tax and depreciation. Each of its 523 employees supports ₹1.07 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin29.1%

Net margin17.2%

Revenue / employee₹1.07 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?Little sign of one

Returns on capital of 11.8% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

ROCE11.8%

ROE14.9%

Peer median ROE10.3%

What is the outlook?

3 analysts covering the stock expect revenue to grow about 15.9% and earnings to grow about 15.3% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+15.9%

Est. earnings growth+15.3%

Analysts3

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 +128% while net margin moved +66% 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+128%

Margin effect+66%

DalalBaazaar Score

73/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.43 — 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
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

76/ 100

Good

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

Valuation

78/ 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

14.9x

3Y Median

68.5x

40 monthly readings · mean 64.4x · range 20.9x–134.7x

Sector Median

30.2x

median of 3 sector peers

🟢Current valuation is approximately 78% below its 3y median of 68.5x. 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 51% below the peer median of 30.2x.

vs. its own history

Cheap

68.5x median over 40 months · -78%

vs. sector peers

Cheap

30.2x median of 3 peers · -51%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

14.9x

P/B

4.10x

EV/EBITDA

20.0x

PEG

0.27

Dividend Yield

0.37%

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 22.5% to 29.1% over 3 years.
Return on equity is rising
ROE has improved from 5.5% to 14.9%.
Return on capital is rising
ROCE has improved from 8.4% to 11.8%.
Valuation below its historical average
At 14.9x the stock trades 78% below its own median of 68.5x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Debt is rising
Total debt is up 300% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Receivables growing faster than sales
Receivables are up 470% against revenue growth of 128% — customers are taking longer to pay.

Red Flags

4 items require attention · 2 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 300% over 3 years, from ₹146 Cr to ₹583 Cr.
🔴Receivables growing faster than salesFinancial
Receivables up 470% against revenue up 128% — sales are being booked faster than they are collected.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 8.9x to 5.4x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹217 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 22.5% to 29.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 78% 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 51% 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?

The debt load needs earnings to hold up
Debt is 3.6x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 470% against revenue up 128%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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 24% a year✓ 31.5% CAGR
Latest reported year was 212.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 27%✓ 29.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 3.6x
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✗ -₹217 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 9%✓ 11.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 12 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
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 6 neutral · 1 weak

Market Cap

₹2,780 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

14.9x

Cheap

Cheap against the generic band

P/B Ratio

4.10x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹40.65

Profitable

Profitable on a per-share basis

ROE

14.9%

Moderate

Moderate capital efficiency

ROCE

11.8%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.65x

Moderate

Moderate leverage

Revenue Growth (YoY)

212.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

801.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.37%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹217 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹606.2

P/E (Forward)

18.3x

Flat

At or above the trailing multiple — no earnings uplift is being priced in

Operating Margin

47.7%

Good

Healthy core-business profitability

Net Margin

23.6%

Good

Strong bottom-line conversion

Current Ratio

1.21

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.43

Defensive

Steadier than the market

52W Range Position

54%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

602.3 / 625.1

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

48.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹246 Cr	₹330 Cr	₹707 Cr	₹559 Cr	+31.5%
EBITDA	₹55 Cr	₹114 Cr	₹178 Cr	₹163 Cr	+43.3%
EBITDA Margin	22.5%	34.4%	25.1%	29.1%	—
PAT (Net Profit)	₹26 Cr	₹42 Cr	₹110 Cr	₹96 Cr	+55.6%
EPS	₹5.63	₹9.09	₹24	₹20.95	+55.0%
ROE	5.5%	8.4%	18.5%	14.9%	—
ROCE	8.4%	16.1%	17.7%	11.8%	—
Total Debt	₹146 Cr	₹110 Cr	₹285 Cr	₹583 Cr	+58.7%
Free Cash Flow	-₹112 Cr	₹15 Cr	-₹99 Cr	-₹217 Cr	—

🟢 Revenue has grown at 31.5% a year over 3 years.

🟢 EBITDA has grown at 43.3% a year over 3 years.

🟢 EBITDA Margin has risen from 22.5% to 29.1% over 3 years (+6.6 pts).

🟢 PAT (Net Profit) has grown at 55.6% a year over 3 years.

🟢 EPS has grown at 55.0% a year over 3 years.

🟢 ROE has risen from 5.5% to 14.9% over 3 years (+9.4 pts).

🟢 ROCE has risen from 8.4% to 11.8% over 3 years (+3.4 pts).

🔴 Total Debt has grown at 58.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3,594 Cr

Total Liabilities

₹2,697 Cr

Total Debt

₹583 Cr

Cash & Equivalents

₹111 Cr

Operating Cash Flow

-₹170 Cr

Capex

-₹47 Cr

Shareholding (proxy)

Institutional Holding

8.0%

Insider Holding

67.9%

Corporate Actions

Dividend Rate

₹2.25

Ex-Dividend Date

28 Aug 2026

Analyst Consensus

Recommendations

3 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹831.67

+37.2% vs CMP

Target Range

₹820 – ₹850

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

5 mixed1 general

Arvind SmartSpaces (NSEI:ARVSMART) Stock Forecast & Analyst Predictions

Simply Wall Street, 05 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Is Arvind SmartSpaces the Best Stock in Its Sector? A Look at the Numbers

Univest, 12 Oct

Arvind SmartSpaces share price jumps 12% today as ₹500 crore bookings in 30 days spark investors' interest - Details

Livemint, 23 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Arvind SmartSpaces shares jump over 10% after new project revenue estimates of ₹180 crore surpass Q4 numbers

Upstox, 16 JunPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Arvind SmartSpaces shares rally 11% as bookings cross Rs 500 crore in Bengaluru project

The Economic Times, 23 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Small-Cap Real Estate Stock Hits Fresh 52-Week High As Company Reports 708% PAT Growth in Q1 FY27; Share Price Jumps 11%

Dalal Street Investment Journal, 07 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

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

DalalBaazaar Thesis

🟢Business QualityStrong15.8/20

🟡Financial HealthAdequate11/20

🟢GrowthStrong18.5/20

🟢ProfitabilityStrong11.4/15

🟢ValuationAttractive11.8/15

🔴RiskHigh4/10

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 24% a year31.5% CAGR
✓EBITDA margin holds above 27%29.1%
✗Debt / EBITDA falls below 3x3.6x
✗Free cash flow remains positive-₹217 Cr
✓ROCE stays above 9%11.8%