Homesfy Realty Limited

Sector n/a · NSE

₹662.00+₹17.70 (+2.75%)

DalalBaazaar Score

34 / 100

🔴 Weak

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: The business is earning a fairly low return on the money invested in it, 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, 6:10 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

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

How does it make money?

Turns over ₹40 Cr a year. Of every ₹100 of sales, about ₹-51 reaches shareholders as profit, with ₹-46 left at the operating level before interest, tax and depreciation.

EBITDA margin-45.7%

Net margin-50.8%

What is its competitive advantage?Little sign of one

Returns on capital of -67.2% 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-67.2%

ROE-69.0%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -24% while net margin moved -1186% 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-24%

Margin effect-1186%

DalalBaazaar Score

34/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative
✗ ROE has fallen by 75.8 points over the period

Quality vs. Valuation

Company Quality

33/ 100

Weak

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

Valuation

—/ 100

Unknown

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

Not enough data to separate business quality from valuation for this company.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

No P/E available

P/E (Trailing)

—

P/B

—

EV/EBITDA

—

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Debt is being paid down
Total debt is down 33% over 3 years.

🔴 What Needs Attention4

Margins are compressing
EBITDA margin has slipped from 11.4% to -45.7% over 3 years.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 6.8% to -69.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 11.8% to -67.2% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only -1548.4x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹20 Cr in the latest reported year.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 57.1 points, from 11.4% to -45.7%.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 11.4x to -1548.4x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹9 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 33% 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 11.4% to -45.7%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Returns on shareholder capital are falling
ROE has dropped from 6.8% to -69.0%. 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.
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 -48%✓ -45.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹9 Cr
Profit that never becomes cash eventually stops being profit.
3Interest cover stays above 3x✗ -1548.4x
How much operating profit can fall before interest stops being comfortably covered.
4ROCE stays above 8%✗ -67.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

3 / 9 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
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

1 good · 5 neutral · 5 weak

Market Cap

₹214 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not available

No data

Source didn't return this field

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

Not available

No data

Source didn't return this field

ROE

-69.0%

Weak

Weak capital efficiency

ROCE

-67.2%

Weak

Low return on total capital employed

Debt/Equity

0.42x

Low

Conservative leverage

Revenue Growth (YoY)

-31.3%

Shrinking

Sales are contracting

Profit Growth (YoY)

-1589.8%

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

-₹9 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹662

Gross Margin

100.0%

Proxy

Operating margin unavailable — showing gross margin instead

Net Margin

-50.8%

Weak

Very little revenue reaches the bottom line

Current Ratio

3.03

Comfortable

Healthy short-term liquidity

Technical Snapshot

SMA 20 / SMA 50

122.3 / 117.1

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

100.0

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹53 Cr	₹61 Cr	₹59 Cr	₹40 Cr	-8.7%
EBITDA	₹6 Cr	₹5 Cr	₹3 Cr	-₹18 Cr	—
EBITDA Margin	11.4%	7.7%	5.0%	-45.7%	—
PAT (Net Profit)	₹2 Cr	₹3 Cr	₹1 Cr	-₹20 Cr	—
EPS	₹18.87	₹8.9	₹4.46	—	—
ROE	6.8%	6.9%	2.7%	-69.0%	—
ROCE	11.8%	9.7%	4.1%	-67.2%	—
Total Debt	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	-12.5%
Free Cash Flow	-₹5 Cr	-₹8 Cr	₹1 Cr	-₹9 Cr	—

🔴 Revenue has shrunk at 8.7% a year over 3 years.

🔴 EBITDA has turned negative, from ₹6 Cr to -₹18 Cr.

🔴 EBITDA Margin has fallen from 11.4% to -45.7% over 3 years (-57.1 pts).

🔴 PAT (Net Profit) has turned negative, from ₹2 Cr to -₹20 Cr.

🔴 ROE has fallen from 6.8% to -69.0% over 3 years (-75.8 pts).

🔴 ROCE has fallen from 11.8% to -67.2% over 3 years (-79.0 pts).

🟢 Total Debt has shrunk at 12.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹43 Cr

Total Liabilities

₹13 Cr

Total Debt

₹0 Cr

Cash & Equivalents

₹17 Cr

Operating Cash Flow

-₹7 Cr

Capex

-₹2 Cr

Recent News

6 general

HOMESFY REALTY LIMITED Share Price

Upstox, 19 Aug

Homesfy Realty (NSEI:HOMESFY) - Stock Analysis

Simply Wall Street, 27 Mar

SME firm Homesfy Realty IPO opens today: 10 things to know about the issue

Livemint, 21 Dec

All you need to know about Homesfy Realty's SME IPO

The Economic Times, 20 Dec

Homesfy Realty Limited (HOMESFY) Leadership & Management Team Analysis

Simply Wall Street, 27 Mar

Bulk deals: JSW veteran Prashant Jain picks up stake in Coffee Day Enterprises

Moneycontrol.com, 16 Apr

Watch Items

Revenue growth is negative (-31.3%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
Sector/industry classification unavailable — verify manually for peer comparison.
3 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

🔴Business QualityWeak4.7/20

🟡Financial HealthAdequate12.1/20

🔴GrowthWeak5/20

🔴ProfitabilityWeak2.5/15

🟡ValuationFair7.5/15

🔴RiskHigh2.5/10

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

This thesis breaks if

✓EBITDA margin holds above -48%-45.7%
✗Free cash flow remains positive-₹9 Cr
✗Interest cover stays above 3x-1548.4x
✗ROCE stays above 8%-67.2%