Hemisphere Properties India Limited

Real Estate — Real Estate - Diversified · NSE

₹111.21−₹0.55 (−0.49%)

DalalBaazaar Score

29 / 100

🔴 Weak

Verdict

HIGH RISK

Risk

Very High

Driven by short-term liabilities exceed short-term assets, negative free cash flow, the company is currently loss-making.

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

Decision support, not a buy or sell call.

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

What does this company do?

Hemisphere Properties India Limited operates as a real estate company in India. It focuses on acquiring, constructing, developing, holding, managing, administering, protecting, reserving, and dealing in properties, including sale and purchase.

IndustryReal Estate - Diversified

SectorReal Estate

Annual revenue₹1 Cr

How does it make money?

Turns over ₹1 Cr a year. Of every ₹100 of sales, about ₹-1131 reaches shareholders as profit, with ₹-549 left at the operating level before interest, tax and depreciation.

EBITDA margin-548.9%

Net margin-1130.6%

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.

DLF LIMITEDP/E 36.6x · ROE 10.3%

GODREJ PROPERTIES LTDP/E 30.2x · ROE 8.4%

OBEROI REALTY LIMITEDP/E 23.5x · ROE 14.7%

What is its competitive advantage?Little sign of one

Returns on capital of -1.1% 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.

ROCE-1.1%

ROE-2.6%

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 -50% while net margin moved +250% 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-50%

Margin effect+250%

DalalBaazaar Score

29/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ No meaningful P/E — the company is lossmaking
✗ P/B of 7.37x is a steep premium to book

Quality vs. Valuation

Company Quality

30/ 100

Weak

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

Valuation

21/ 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

P/E (Trailing)

Not meaningful

P/B

7.37x

EV/EBITDA

—

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Very low debt
Debt/Equity of 0.20x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention4

Margins are compressing
EBITDA margin has slipped from -64.8% to -548.9% over 3 years.
Debt is rising
Total debt is up 34% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Short-term liquidity is tight
Current ratio of 0.31 — near-term obligations exceed near-term assets.

Red Flags

7 items require attention · 4 high · 3 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only -0.7x — little room if earnings dip.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴The company is lossmakingFinancial
Net profit of -₹11 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 484.1 points, from -64.8% to -548.9%.
🟡Debt is increasingFinancial
Total debt is up 34% over 3 years.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from -0.5x to -0.7x.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.31 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

No clear supporting case emerges from the available numbers.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from -64.8% to -548.9%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
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
4 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 -551%✓ -548.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹151 Cr
Profit that never becomes cash eventually stops being profit.
3Interest cover stays above 3x✗ -0.7x
How much operating profit can fall before interest stops being comfortably covered.
4ROCE stays above 8%✗ -1.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

3 / 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

1 good · 2 neutral · 8 weak

Market Cap

₹3,171 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

7.37x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹-0.41

Loss-making

Negative earnings per share — the business is losing money

ROE

-2.6%

Weak

Weak capital efficiency

ROCE

-1.1%

Weak

Low return on total capital employed

Debt/Equity

0.20x

Low

Conservative leverage

Revenue Growth (YoY)

-38.8%

Shrinking

Sales are contracting

Profit Growth (YoY)

-49.2%

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

-₹151 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹111.21

Operating Margin

-1136.3%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.31

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.30

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

114.6 / 123.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

29.4

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2 Cr	₹1 Cr	₹1 Cr	₹1 Cr	-20.9%
EBITDA	-₹1 Cr	-₹6 Cr	-₹3 Cr	-₹5 Cr	—
EBITDA Margin	-64.8%	-1119.2%	-339.8%	-548.9%	—
PAT (Net Profit)	-₹6 Cr	-₹10 Cr	-₹8 Cr	-₹11 Cr	—
EPS	₹-0.23	₹-0.34	₹-0.26	₹-0.39	—
ROE	-1.8%	-2.8%	-1.9%	-2.6%	—
ROCE	-0.3%	-1.4%	-0.7%	-1.1%	—
Total Debt	₹65 Cr	₹62 Cr	₹60 Cr	₹87 Cr	+10.4%
Free Cash Flow	-₹23 Cr	-₹7 Cr	-₹17 Cr	-₹151 Cr	—

🔴 Revenue has shrunk at 20.9% a year over 3 years.

🔴 EBITDA Margin has fallen from -64.8% to -548.9% over 3 years (-484.1 pts).

🟡 ROE has held roughly flat at -2.6% over 3 years.

🟡 ROCE has held roughly flat at -1.1% over 3 years.

🔴 Total Debt has grown at 10.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,163 Cr

Total Liabilities

₹729 Cr

Total Debt

₹87 Cr

Cash & Equivalents

₹25 Cr

Operating Cash Flow

-₹151 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

9.0%

Insider Holding

61.0%

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

Hemisphere Properties India Share Price Near Yearly Low

Univest, 14 Oct

Hemisphere Properties Q1 Results: Loss widens to ₹32 crore, auditor flags gaps

scanx.trade, 11 AugResults

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

Top trading ideas: Analyst bets on Hemisphere Properties, Sumitomo Chemical

Business Standard, 05 MayAnalyst view

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

Hemisphere Properties India vs Nifty 50: Returns Compared

Univest, 25 Sept

Hemisphere Properties India Ltd. Share Price Live Today

CNBC TV18, 03 Jan

Stocks to buy: Nagaraj Shetti recommends Cochin Shipyard, Hemisphere Properties shares to buy

Livemint, 19 Feb

Watch Items

Revenue growth is negative (-38.8%) 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 oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

🔴Business QualityWeak6.2/20

🔴Financial HealthStretched7.8/20

🔴GrowthWeak5/20

🔴ProfitabilityWeak3.2/15

🔴ValuationDemanding2.6/15

🔴RiskHigh4.4/10

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

This thesis breaks if

✓EBITDA margin holds above -551%-548.9%
✗Free cash flow remains positive-₹151 Cr
✗Interest cover stays above 3x-0.7x
✗ROCE stays above 8%-1.1%