EFC (I) Limited

Real Estate — Real Estate Services · NSE

₹170.02−₹1.36 (−0.79%)

DalalBaazaar Score

72 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

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

In simple words: Strong business and financial position, with modest growth. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 8:28 pm

Understanding the Business

Company site ↗

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

What does this company do?

EFC (I) Limited engages in the provision of real estate services in India and internationally. It operates through the Rental, Interior, and Furniture segments.

IndustryReal Estate Services

SectorReal Estate

Employees673

Annual revenue₹1,037 Cr

How does it make money?

Turns over ₹1,037 Cr a year. Of every ₹100 of sales, about ₹22 reaches shareholders as profit, with ₹43 left at the operating level before interest, tax and depreciation. Each of its 673 employees supports ₹1.54 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.54 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.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 16.0% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE10.3%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 33.9% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+33.9%

Analysts1

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 +904% while net margin moved +431% 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+904%

Margin effect+431%

DalalBaazaar Score

72/ 100

Good

Weighted across six categories. Every point is explained below.

• Beta of 0.86 — moves roughly with the market
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

76/ 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

8.5x

1.3Y Median

19.1x

16 monthly readings · mean 20.7x · range 10.2x–33.2x

Sector Median

30.2x

median of 3 sector peers

🟢Current valuation is approximately 55% below its 1.3y median of 19.1x. 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 72% below the peer median of 30.2x.

vs. its own history

Cheap

19.1x median over 16 months · -55%

vs. sector peers

Cheap

30.2x median of 3 peers · -72%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

8.7x

PEG

0.03

What's Good / What's Bad

🟢 What's Going Well4

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from 5.9% to 28.7%.
Return on capital is rising
ROCE has improved from 5.8% to 16.0%.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

5 items require attention · 4 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 334% over 3 years, from ₹324 Cr to ₹1,406 Cr.
🔴High leverageFinancial
Debt/Equity of 1.73x — earnings must service borrowings before shareholders see anything.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 11.3 points, from 54.5% to 43.2%.
🔴Receivables growing faster than salesFinancial
Receivables up 1578% against revenue up 904% — sales are being booked faster than they are collected.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 101% 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 55% 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 72% 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 54.5% to 43.2%. 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 3.1x 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 1578% against revenue up 904%. 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.

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

1Revenue growth stays above 87% a year✓ 115.8% CAGR
Latest reported year was 28.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 41%✓ 43.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 3.1x
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✓ ₹101 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 13%✓ 16.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 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

6 good · 4 neutral · 1 weak

Market Cap

₹2,515 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

8.5x

Cheap

Cheap against the generic band

P/B Ratio

2.89x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹19.96

Profitable

Profitable on a per-share basis

ROE

28.7%

Strong

Strong capital efficiency

ROCE

16.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.73x

High

High leverage

Revenue Growth (YoY)

28.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

3.0%

Modest

Slow profit growth

Dividend Yield

None

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

Free Cash Flow

₹101 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

6.3x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

35.4%

Good

Healthy core-business profitability

Net Margin

23.4%

Good

Strong bottom-line conversion

Current Ratio

1.16

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.86

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

173.9 / 183.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

39.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹103 Cr	₹419 Cr	₹657 Cr	₹1,037 Cr	+115.8%
EBITDA	₹56 Cr	₹185 Cr	₹343 Cr	₹448 Cr	+99.7%
EBITDA Margin	54.5%	44.2%	52.2%	43.2%	—
PAT (Net Profit)	₹4 Cr	₹58 Cr	₹142 Cr	₹232 Cr	+276.5%
EPS	₹0.82	₹5.73	₹10.19	₹16.61	+172.5%
ROE	5.9%	13.6%	24.5%	28.7%	—
ROCE	5.8%	13.4%	17.7%	16.0%	—
Total Debt	₹324 Cr	₹406 Cr	₹878 Cr	₹1,406 Cr	+63.1%
Free Cash Flow	-₹71 Cr	-₹50 Cr	-₹12 Cr	₹101 Cr	—

🟢 Revenue has grown at 115.8% a year over 3 years.

🟢 EBITDA has grown at 99.7% a year over 3 years.

🔴 EBITDA Margin has fallen from 54.5% to 43.2% over 3 years (-11.3 pts).

🟢 PAT (Net Profit) has grown at 276.5% a year over 3 years.

🟢 EPS has grown at 172.5% a year over 3 years.

🟢 ROE has risen from 5.9% to 28.7% over 3 years (+22.7 pts).

🟢 ROCE has risen from 5.8% to 16.0% over 3 years (+10.2 pts).

🔴 Total Debt has grown at 63.1% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹71 Cr to ₹101 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,675 Cr

Total Liabilities

₹1,861 Cr

Cash & Equivalents

₹10 Cr

Operating Cash Flow

₹209 Cr

Capex

-₹108 Cr

Shareholding (proxy)

Institutional Holding

9.0%

Insider Holding

58.6%

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹275

+61.7% vs CMP

Target Range

₹275 – ₹275

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

2 mixed4 general

EFCIL Forecast — Price Target — Prediction for 2027

TradingView, 25 JunAnalyst view

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

We Think That There Are Issues Underlying EFC (I)'s (NSE:EFCIL) Earnings

Simply Wall Street, 05 JunResults

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

EFC (I) Ltd. Share Price and Fundamental Check Near Low

Univest, 17 Aug

EFC (I) Limited Board Approves ₹160 Crore Rights Issue with Official Outcome

scanx.trade, 03 Apr

Ellington Financial Inc. (EFC-PB) stock price, news, quote and history

Yahoo Finance UK, 02 Oct

EFC (I) Ltd. Share Price: price action after 52-week low

Univest, 09 Oct

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

StrongBusiness Quality · Growth · Profitability · Valuation

MiddlingFinancial Health

WeakRisk

Points for each in the Score ↑

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. 4 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Debt / EBITDA falls below 3x · see Key things to watch ↑