HB Estate Developers Limited

Consumer Cyclical — Lodging · NSE

₹80.95+₹5.84 (+7.78%)

DalalBaazaar Score

56 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by moderate debt load, short-term liabilities exceed short-term assets, 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. Short-term liquidity is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 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 HB Estate Developers Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

HB Estate Developers Limited owns and manages hotels and real estate properties in India. The company operates hotels; and develops commercial complexes.

IndustryLodging

SectorConsumer Cyclical

Employees306

Annual revenue₹116 Cr

How does it make money?

Turns over ₹116 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹36 left at the operating level before interest, tax and depreciation. Each of its 306 employees supports ₹38.0 lakh of revenue a year, the signature of a people-led business.

EBITDA margin35.7%

Net margin10.1%

Revenue / employee₹38.0 lakh

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

TRENT LTDP/E 87.2x · ROE 25.9%

AVENUE SUPERMARTS LIMITEDP/E 69.9x · ROE 12.7%

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.

ROCE7.8%

ROE6.0%

Peer median ROE25.9%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +21% while net margin moved -183% 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+21%

Margin effect-183%

DalalBaazaar Score

56/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 6.7% — barely ahead of inflation

Quality vs. Valuation

Company Quality

52/ 100

Average

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

Valuation

87/ 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

14.0x

Sector Median

69.2x

median of 4 sector peers

🟢Against its sector it trades 80% below the peer median of 69.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

69.2x median of 4 peers · -80%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

14.0x

P/B

0.96x

EV/EBITDA

7.8x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 34.1% to 35.7% over 3 years.
Debt is being paid down
Total debt is down 32% over 3 years.
Return on equity is rising
ROE has improved from -8.0% to 6.0%.
Return on capital is rising
ROCE has improved from 5.7% to 7.8%.

🔴 What Needs Attention2

Receivables growing faster than sales
Receivables are up 109% against revenue growth of 21% — customers are taking longer to pay.
Short-term liquidity is tight
Current ratio of 0.89 — near-term obligations exceed near-term assets.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Receivables growing faster than salesFinancial
Receivables up 109% against revenue up 21% — sales are being booked faster than they are collected.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.89 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 34.1% to 35.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 32% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 80% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

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.
Sales are being booked faster than collected
Receivables are up 109% against revenue up 21%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 6.7% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
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 34%✓ 35.7%
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.
3Interest cover stays above 3x✗ 2.1x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 5% a year✓ 6.7% CAGR
Latest reported year was 16.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹44 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

6 / 10 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

Price history

Quick Metrics

6 good · 3 neutral · 2 weak

Market Cap

₹186 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

14.0x

Cheap

Cheap against the generic band

P/B Ratio

0.96x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹5.78

Profitable

Profitable on a per-share basis

ROE

6.0%

Weak

Weak capital efficiency

ROCE

7.8%

Weak

Low return on total capital employed

Debt/Equity

1.33x

Moderate

Moderate leverage

Revenue Growth (YoY)

16.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

272.2%

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

₹44 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹80.95

Operating Margin

19.5%

Good

Healthy core-business profitability

Net Margin

10.6%

Good

Strong bottom-line conversion

Current Ratio

0.89

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.53

Defensive

Steadier than the market

52W Range Position

67%

Mid-range

Technical Snapshot

RSI (14)

62.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹96 Cr	₹109 Cr	₹117 Cr	₹116 Cr	+6.7%
EBITDA	₹33 Cr	₹38 Cr	₹43 Cr	₹41 Cr	+8.3%
EBITDA Margin	34.1%	35.1%	37.0%	35.7%	—
PAT (Net Profit)	-₹12 Cr	₹4 Cr	₹11 Cr	₹12 Cr	—
EPS	₹-5.98	₹2	₹5.31	₹5.19	—
ROE	-8.0%	2.6%	6.2%	6.0%	—
ROCE	5.7%	8.4%	8.4%	7.8%	—
Total Debt	₹226 Cr	₹256 Cr	₹284 Cr	₹153 Cr	-12.2%
Free Cash Flow	₹40 Cr	₹46 Cr	₹29 Cr	₹44 Cr	+3.0%

🟢 Revenue has grown at 6.7% a year over 3 years.

🟢 EBITDA has grown at 8.3% a year over 3 years.

🟢 EBITDA Margin has risen from 34.1% to 35.7% over 3 years (+1.6 pts).

🟢 PAT (Net Profit) has turned positive, from -₹12 Cr to ₹12 Cr.

🟢 EPS has turned positive, from ₹-5.98 to ₹5.19.

🟢 ROE has risen from -8.0% to 6.0% over 3 years (+14.0 pts).

🟢 ROCE has risen from 5.7% to 7.8% over 3 years (+2.1 pts).

🟢 Total Debt has shrunk at 12.2% a year over 3 years.

🟢 Free Cash Flow has grown at 3.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹491 Cr

Total Liabilities

₹297 Cr

Total Debt

₹153 Cr

Cash & Equivalents

₹13 Cr

Operating Cash Flow

₹45 Cr

Capex

-₹2 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

64.4%

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

1 positive3 mixed2 general

HB Estate Developers Share Price News: Realty Stock Slides

Univest, 06 Oct

HB Estate Developers consolidated net profit rises 305.26% in the June 2026 quarter

Business Standard, 03 AugResults

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

Volume Gainers Today, October 6, 2026 at 12:00 PM IST

HDFC Sky, 06 Oct

Suraj Estate Developers shares jumps 16% on acquiring land with GDV of Rs 100cr

Moneycontrol.com, 16 AprPrice 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.

HB Estate Developers Reports 35.1% Jump in Q3 FY26 Net Profit to ₹650.49 Lakhs

scanx.trade, 13 FebResults

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

HB Estate Developers Ltd. (HBESD) Share Price Rises 8.22% Today

Univest, 14 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 QualityAdequate11.8/20

🟡Financial HealthAdequate10.1/20

🔴GrowthWeak7.6/20

🟡ProfitabilityModerate9.4/15

🟢ValuationAttractive13/15

🔴RiskHigh4.4/10

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. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 34%35.7%
✗Debt / EBITDA falls below 3x3.7x
✗Interest cover stays above 3x2.1x
✓Revenue growth stays above 5% a year6.7% CAGR
✓Free cash flow remains positive₹44 Cr