Atal Realtech Limited

Industrials — Engineering & Construction · NSE

₹12.45+₹0.02 (+0.16%)

DalalBaazaar Score

56 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with modest growth. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Atal Realtech Limited, a construction company, provides integrated civil works contracting and engineering services for structural construction and infrastructure sector projects in India.

IndustryEngineering & Construction

SectorIndustrials

Employees38

Annual revenue₹120 Cr

How does it make money?

Turns over ₹120 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹9 left at the operating level before interest, tax and depreciation. Each of its 38 employees supports ₹3.16 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin9.3%

Net margin5.4%

Revenue / employee₹3.16 Cr

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., ADANI PORT & SEZ LTD, SIEMENS LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

ADANI PORT & SEZ LTDP/E 29.9x · ROE 14.1%

SIEMENS LTDP/E 88.8x · ROE 10.5%

What is its competitive advantage?Little sign of one

Returns on capital of 10.0% 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.

ROCE10.0%

ROE6.8%

Peer median ROE14.1%

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 +195% while net margin moved +6% 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+195%

Margin effect+6%

DalalBaazaar Score

56/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROCE of 10.0% is below 10% — capital is not working hard
• ROCE has been broadly stable
✗ EBITDA margin of 9.3% is thin — little cushion if costs rise
✗ Net margin of 5.7% is slim
• Revenue has compounded at 43.5% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

52/ 100

Average

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

Valuation

84/ 100

Cheap

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

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

14.6x

3Y Median

53.0x

40 monthly readings · mean 54.4x · range 12.6x–100.6x

Sector Median

30.1x

median of 3 sector peers

🟢Current valuation is approximately 72% below its 3y median of 53.0x. 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 51% below the peer median of 30.1x.

vs. its own history

Cheap

53.0x median over 40 months · -72%

vs. sector peers

Cheap

30.1x median of 3 peers · -51%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

14.6x

P/B

0.83x

EV/EBITDA

14.4x

PEG

0.32

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Valuation below its historical average
At 14.6x the stock trades 72% below its own median of 53.0x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Margins are compressing
EBITDA margin has slipped from 11.5% to 9.3% over 3 years.
Free cash flow is negative
The business is not currently covering its capital spending from operations.

Red Flags

5 items require attention · 2 high · 3 watch

🔴High leverageFinancial
Debt/Equity of 4.42x — earnings must service borrowings before shareholders see anything.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹23 Cr in the latest year.
🟡Margins are compressingFinancial
EBITDA margin is down 2.2 points over 3 years.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 63% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 72% 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?

Margins are being competed away
EBITDA margin has fallen from 11.5% to 9.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 4.42x. Interest is payable whether or not the business has a good year.
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 33% a year✓ 43.5% CAGR
Latest reported year was 3.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 7%✓ 9.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹23 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✓ 10.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 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

4 good · 4 neutral · 3 weak

Market Cap

₹154 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

14.6x

Cheap

Cheap against the generic band

P/B Ratio

0.83x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.85

Profitable

Profitable on a per-share basis

ROE

6.8%

Weak

Weak capital efficiency

ROCE

10.0%

Moderate

Moderate return on the capital in the business

Debt/Equity

4.42x

High

High leverage

Revenue Growth (YoY)

3.5%

Modest

Modest growth

Profit Growth (YoY)

33.3%

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

-₹23 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹12.45

Operating Margin

14.3%

Average

Average margins

Net Margin

5.7%

Average

Average bottom-line conversion

Current Ratio

5.70

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.75

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

12.7 / 22.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

40.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹41 Cr	₹41 Cr	₹96 Cr	₹120 Cr	+43.5%
EBITDA	₹5 Cr	₹5 Cr	₹7 Cr	₹11 Cr	+33.7%
EBITDA Margin	11.5%	12.3%	7.3%	9.3%	—
PAT (Net Profit)	₹2 Cr	₹2 Cr	₹4 Cr	₹6 Cr	+46.2%
EPS	₹0.27	₹0.28	₹0.33	₹0.99	+53.8%
ROE	5.9%	5.7%	5.3%	6.8%	—
ROCE	11.0%	11.5%	8.9%	10.0%	—
Total Debt	₹11 Cr	₹9 Cr	₹16 Cr	₹14 Cr	+6.7%
Free Cash Flow	₹2 Cr	₹1 Cr	-₹16 Cr	-₹23 Cr	—

🟢 Revenue has grown at 43.5% a year over 3 years.

🟢 EBITDA has grown at 33.7% a year over 3 years.

🔴 EBITDA Margin has fallen from 11.5% to 9.3% over 3 years (-2.2 pts).

🟢 PAT (Net Profit) has grown at 46.2% a year over 3 years.

🟢 EPS has grown at 53.8% a year over 3 years.

🟡 ROE has held roughly flat at 6.8% over 3 years.

🔴 ROCE has fallen from 11.0% to 10.0% over 3 years (-1.0 pts).

🔴 Total Debt has grown at 6.7% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹2 Cr to -₹23 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹119 Cr

Total Liabilities

₹23 Cr

Total Debt

₹14 Cr

Cash & Equivalents

₹7 Cr

Operating Cash Flow

-₹19 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

63.1%

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
ADANI PORT & SEZ LTD	29.9x	14.1%
SIEMENS LTD	88.8x	10.5%

Recent News

6 general

Here's Why We Think Atal Realtech (NSE:ATALREAL) Might Deserve Your Attention Today

Simply Wall Street, 10 Jun

Atal Realtech approves ₹16 crore rights issue; promoter opts out

scanx.trade, 18 Aug

Atal Realtech Upper Circuit Streak: Day 2 Price and Data

Univest, 14 Oct

Atal Realtech Share Price and Daily Chart View

Kalkine India, 10 Sept

Atal Realtech closes books Sept 22-28 for 14th AGM

scanx.trade, 29 Aug

Atal Realtech Ltd. (ATALREAL) Share Price Trades Within 2% of 52-Week High

Univest, 17 Aug

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🔴Business QualityWeak7.5/20

🟡Financial HealthAdequate10.6/20

🟢GrowthStrong14.9/20

🔴ProfitabilityWeak6.2/15

🟢ValuationAttractive13.2/15

🔴RiskHigh4/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 33% a year43.5% CAGR
✓EBITDA margin holds above 7%9.3%
✗Free cash flow remains positive-₹23 Cr
✓Debt / EBITDA stays below 2x1.2x
✓ROCE stays above 8%10.0%