Eldeco Housing and Industries Limited

Real Estate — Real Estate Services · NSE

₹780.00−₹26.55 (−3.29%)

DalalBaazaar Score

58 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Moderate

Driven by 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 both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:48 pm

Understanding the Business

Company site ↗

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

What does this company do?

Eldeco Housing and Industries Limited develops real estate properties in India. The company is involved in construction, development, promotion, and sale of townships, residential communities, commercial complexes, shopping malls, and industrial parks, as well as developed plots.

IndustryReal Estate Services

SectorReal Estate

Employees85

Annual revenue₹164 Cr

How does it make money?

Turns over ₹164 Cr a year. Of every ₹100 of sales, about ₹15 reaches shareholders as profit, with ₹25 left at the operating level before interest, tax and depreciation. Each of its 85 employees supports ₹1.93 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.93 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?Little sign of one

Returns on capital of 7.8% 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.

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 +29% while net margin moved -58% 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+29%

Margin effect-58%

DalalBaazaar Score

58/ 100

Moderate

Weighted across six categories. Every point is explained below.

• Revenue CAGR of 9.0% is steady
✗ Profit has declined at 18.2% a year
✗ Profit is compounding slower than revenue — margins are being squeezed as the business grows

Quality vs. Valuation

Company Quality

56/ 100

Average

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

Valuation

62/ 100

Fair

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

20.6x

3Y Median

24.9x

40 monthly readings · mean 27.2x · range 15.8x–45.3x

Sector Median

30.2x

median of 3 sector peers

🟢Current valuation is approximately 17% below its 3y median of 24.9x. 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 32% below the peer median of 30.2x.

vs. its own history

Fair

24.9x median over 40 months · -17%

vs. sector peers

Cheap

30.2x median of 3 peers · -32%

vs. generic bands

Fair

15x–35x

EV/EBITDA

16.1x

PEG

—

What's Good / What's Bad

🟢 What's Going Well2

Cash generation is improving
Free cash flow is up 446% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 12.9% to 6.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 17.4% to 7.8% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 5908% over 3 years, from ₹3 Cr to ₹154 Cr.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 23.0 points, from 48.3% to 25.3%.
🔴Inventory building faster than salesFinancial
Inventory up 158% against revenue up 29% — stock may not be moving.
🟡Profit is decliningFinancial
Net profit is down 45% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 32% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹104 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
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 48.3% to 25.3%. 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 3.7x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Returns on shareholder capital are falling
ROE has dropped from 12.9% to 6.1%. 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.
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
3 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

1EBITDA margin holds above 23%✓ 25.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 3.7x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Revenue growth stays above 7% a year✓ 9.0% CAGR
Latest reported year was 71.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Free cash flow remains positive✓ ₹104 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ 7.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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

5 good · 4 neutral · 2 weak

Market Cap

₹767 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

20.6x

Fair

Fairly valued against the generic band

P/B Ratio

1.92x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹37.87

Profitable

Profitable on a per-share basis

ROE

6.1%

Weak

Weak capital efficiency

ROCE

7.8%

Weak

Low return on total capital employed

Debt/Equity

0.39x

Low

Conservative leverage

Revenue Growth (YoY)

71.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

381.5%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.15%

Modest

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

Free Cash Flow

₹104 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

35.1%

Good

Healthy core-business profitability

Net Margin

19.6%

Good

Strong bottom-line conversion

Current Ratio

1.94

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.56

Defensive

Steadier than the market

52W Range Position

23%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

774.6 / 780.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

55.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹127 Cr	₹113 Cr	₹133 Cr	₹164 Cr	+9.0%
EBITDA	₹61 Cr	₹48 Cr	₹36 Cr	₹41 Cr	-12.1%
EBITDA Margin	48.3%	42.9%	26.8%	25.3%	—
PAT (Net Profit)	₹44 Cr	₹34 Cr	₹22 Cr	₹24 Cr	-18.2%
EPS	₹45.12	₹34.43	₹21.87	₹24.7	-18.2%
ROE	12.9%	9.1%	5.6%	6.1%	—
ROCE	17.4%	10.4%	7.1%	7.8%	—
Total Debt	₹3 Cr	₹84 Cr	₹116 Cr	₹154 Cr	+291.7%
Free Cash Flow	₹19 Cr	-₹128 Cr	-₹14 Cr	₹104 Cr	+76.1%

🟢 Revenue has grown at 9.0% a year over 3 years.

🔴 EBITDA has shrunk at 12.1% a year over 3 years.

🔴 EBITDA Margin has fallen from 48.3% to 25.3% over 3 years (-23.0 pts).

🔴 PAT (Net Profit) has shrunk at 18.2% a year over 3 years.

🔴 EPS has shrunk at 18.2% a year over 3 years.

🔴 ROE has fallen from 12.9% to 6.1% over 3 years (-6.8 pts).

🔴 ROCE has fallen from 17.4% to 7.8% over 3 years (-9.6 pts).

🔴 Total Debt has grown at 291.7% a year over 3 years.

🟢 Free Cash Flow has grown at 76.1% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,053 Cr

Total Liabilities

₹654 Cr

Cash & Equivalents

₹253 Cr

Operating Cash Flow

₹104 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

8.0%

Insider Holding

70.1%

Corporate Actions

Dividend Rate

₹9

Ex-Dividend Date

16 Sept 2026

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 positive1 mixed3 general

Arihant Superstructures vs Eldeco Housing vs Prozone Realty: Which Stock Should You Track

Univest, 16 Oct

Eldeco Housing (ELDEHSG.NS) Advances 1.35% to ₹794.25 – Holds Above Key Support - Low Volume Node

siam.in, 02 Sept

Eldeco Housing & Industries consolidated net profit rises 382.75% in the June 2026 quarter

Business Standard, 13 AugResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Eldeco Housing declares 450% dividend, adopts FY26 financials

scanx.trade, 24 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Eldeco Housing & Industries Ltd. Share Price Live Today

CNBC TV18, 03 Jan

Is Eldeco Housing and Industries a Good Buy After Its Q1 FY27 Results?

Univest, 10 SeptResults

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

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health

MiddlingBusiness Quality · Profitability · Valuation · Risk

WeakGrowth

Points for each in the Score ↑

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

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; ROCE stays above 8% · see Key things to watch ↑