Dharan Infra-EPC Limited

Real Estate — Real Estate - Development · BSE

₹0.19₹0.00 (0.00%)

DalalBaazaar Score

36 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Dharan Infra-EPC Limited engages in the engineering, procurement, and construction business in India. Its projects include railways, roads, bridges, hydro dams, solar farming, waste to energy, housing, and various ports.

IndustryReal Estate - Development

SectorReal Estate

Employees52

Annual revenue₹18 Cr

How does it make money?

Turns over ₹18 Cr a year. Of every ₹100 of sales, about ₹-213 reaches shareholders as profit, with ₹-195 left at the operating level before interest, tax and depreciation. Each of its 52 employees supports ₹34.6 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹34.6 lakh

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.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of -3.5% 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.

Peer median ROE10.3%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -82% while net margin moved -1346% 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-82%

Margin effect-1346%

DalalBaazaar Score

36/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ ROCE of -3.5% is below 10% — capital is not working hard
✗ ROCE has fallen by 18.7 points — returns are eroding
✗ EBITDA margin of -194.9% is thin — little cushion if costs rise
✗ The business is lossmaking at the net level

Quality vs. Valuation

Company Quality

34/ 100

Weak

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

Valuation

36/ 100

Expensive

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

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

—

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 41% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 12.4% to -4.3% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 15.2% to -3.5% — often a sign of competition or overexpansion.

Red Flags

7 items require attention · 5 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 7.23x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only -10.6x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹38 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 232.5 points, from 37.5% to -194.9%.
🔴Inventory building faster than salesFinancial
Inventory up 31% against revenue up -82% — stock may not be moving.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from -2.5x to -10.6x.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 325% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 41% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 37.5% to -194.9%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 7.23x. Interest is payable whether or not the business has a good year.
Returns on shareholder capital are falling
ROE has dropped from 12.4% to -4.3%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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.

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

1EBITDA margin holds above -197%✓ -194.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✗ -10.6x
How much operating profit can fall before interest stops being comfortably covered.
3Free cash flow remains positive✓ ₹17 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ -3.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 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

2 good · 2 neutral · 7 weak

Market Cap

₹99 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

0.10x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-0.06

Loss-making

Negative earnings per share — the business is losing money

ROE

-3.8%

Weak

Weak capital efficiency

ROCE

-3.5%

Weak

Low return on total capital employed

Debt/Equity

7.23x

High

High leverage

Revenue Growth (YoY)

-55.7%

Shrinking

Sales are contracting

Profit Growth (YoY)

-4.8%

Falling

Profits are shrinking

Dividend Yield

None

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

Free Cash Flow

₹17 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

ROA

-1.9%

Weak

Assets generate little profit

Operating Margin

-42.6%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

8.29

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.19

Market-like

Moves roughly in line with the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

0.2 / 0.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

100.0

Overbought zone

Financial Trend (4-Year)

Metric	FY22	FY23	FY24	FY25	3Y CAGR
Revenue	₹101 Cr	₹108 Cr	₹22 Cr	₹18 Cr	-43.7%
EBITDA	₹38 Cr	₹9 Cr	-₹26 Cr	-₹35 Cr	—
EBITDA Margin	37.5%	8.4%	-115.4%	-194.9%	—
PAT (Net Profit)	₹17 Cr	-₹4 Cr	-₹37 Cr	-₹38 Cr	—
EPS	₹0.14	₹-0.03	₹-0.17	₹-0.06	—
ROE	12.4%	-0.4%	-4.0%	-4.3%	—
ROCE	15.2%	0.9%	-2.6%	-3.5%	—
Total Debt	₹109 Cr	₹126 Cr	₹76 Cr	₹64 Cr	-16.3%
Free Cash Flow	-₹20 Cr	-₹163 Cr	₹68 Cr	₹17 Cr	—

🔴 Revenue has shrunk at 43.7% a year over 3 years.

🔴 EBITDA has turned negative, from ₹38 Cr to -₹35 Cr.

🔴 EBITDA Margin has fallen from 37.5% to -194.9% over 3 years (-232.5 pts).

🔴 PAT (Net Profit) has turned negative, from ₹17 Cr to -₹38 Cr.

🔴 EPS has turned negative, from ₹0.14 to ₹-0.06.

🔴 ROE has fallen from 12.4% to -4.3% over 3 years (-16.7 pts).

🔴 ROCE has fallen from 15.2% to -3.5% over 3 years (-18.7 pts).

🟢 Total Debt has shrunk at 16.3% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹20 Cr to ₹17 Cr.

Balance Sheet & Cash Flow — FY2025

Total Assets

₹1,059 Cr

Total Liabilities

₹177 Cr

Cash & Equivalents

₹699 Cr

Operating Cash Flow

₹17 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

28.2%

Corporate Actions

Ex-Dividend Date

12 Aug 2021

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

6 general

Dharan Infra-EPC promoters confirm no encumbrance on shares in FY26

scanx.trade, 14 Jul

DHARAN INFRA-EPC Share Price Forecast: 3 Year Outlook to 2030

Univest, 16 Jul

Dharan Infra-EPC Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 30 Aug

DHARAN INFRA-EPC LIMITED Share Price

Upstox, 05 May

Dharan Infra-EPC - 9 penny stocks crash up to 65% in 3 months. Are you affected?

The Economic Times, 01 Mar

Dharan Infra-EPC Share Price Hits Upper Circuit Today | Stock Market News

Samco, 08 Jan

Watch Items

Revenue growth is negative (-55.7%) on the latest reported period — check if this is one-off or a trend.
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.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

MiddlingFinancial Health · Valuation

WeakBusiness Quality · Growth · Profitability · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 5 high-severity red flags sit above this conclusion and should be read first.

2 of 4 tripwires tripped — Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑