Hubtown Limited

Real Estate — Real Estate - Development · NSE

₹159.60+₹2.98 (+1.90%)

DalalBaazaar Score

68 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by 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. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Hubtown Limited engages in the development and construction of real estate projects in India. The company develops residential and commercial, IT, industrial, and infrastructure projects.

IndustryReal Estate - Development

SectorReal Estate

Employees68

Annual revenue₹587 Cr

How does it make money?

Turns over ₹587 Cr a year. Of every ₹100 of sales, about ₹28 reaches shareholders as profit, with ₹53 left at the operating level before interest, tax and depreciation. Each of its 68 employees supports ₹8.63 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹8.63 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 9.0% 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 +101% while net margin moved +167% 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+101%

Margin effect+167%

DalalBaazaar Score

68/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.59 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

68/ 100

Good

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

Valuation

80/ 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

23.9x

3Y Median

47.7x

40 monthly readings · mean 45.5x · range 10.5x–83.1x

Sector Median

30.2x

median of 3 sector peers

🟢Current valuation is approximately 50% below its 3y median of 47.7x. 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 21% below the peer median of 30.2x.

vs. its own history

Cheap

47.7x median over 40 months · -50%

vs. sector peers

Cheap

30.2x median of 3 peers · -21%

vs. generic bands

Fair

15x–35x

EV/EBITDA

10.8x

PEG

0.32

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 36.8% to 52.5% over 3 years.
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 2.3% to 6.2%.
Return on capital is rising
ROCE has improved from 6.2% to 9.0%.

🔴 What Needs Attention0

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

Red Flags

1 item require attention · 1 watch

🟡Shareholders have been dilutedOwnership
Shares outstanding are up 86% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 36.8% to 52.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 50% 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 21% 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 ₹182 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 3.9x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
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 20% a year✓ 26.2% CAGR
Latest reported year was -17.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 51%✓ 52.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 3.9x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Interest cover stays above 3x✗ 2.3x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹182 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

6 / 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

4 good · 4 neutral · 3 weak

Market Cap

₹2,268 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

23.9x

Fair

Fairly valued against the generic band

P/B Ratio

0.86x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹6.68

Profitable

Profitable on a per-share basis

ROE

6.2%

Weak

Weak capital efficiency

ROCE

9.0%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.45x

Low

Conservative leverage

Revenue Growth (YoY)

-17.0%

Shrinking

Sales are contracting

Profit Growth (YoY)

-69.7%

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

₹182 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

10.8x

Improving

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

Operating Margin

17.6%

Good

Healthy core-business profitability

Net Margin

15.4%

Good

Strong bottom-line conversion

Current Ratio

1.96

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.59

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

167.9 / 177.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

42.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹292 Cr	₹211 Cr	₹397 Cr	₹587 Cr	+26.2%
EBITDA	₹107 Cr	₹129 Cr	₹233 Cr	₹308 Cr	+42.1%
EBITDA Margin	36.8%	61.2%	58.9%	52.5%	—
PAT (Net Profit)	₹31 Cr	-₹86 Cr	₹46 Cr	₹164 Cr	+75.0%
EPS	₹4.16	₹-11.16	₹4.25	₹10.62	+36.7%
ROE	2.3%	-6.8%	1.9%	6.2%	—
ROCE	6.2%	-0.0%	7.6%	9.0%	—
Total Debt	₹966 Cr	₹1,041 Cr	₹793 Cr	₹1,197 Cr	+7.4%
Free Cash Flow	-₹6 Cr	₹94 Cr	-₹586 Cr	₹182 Cr	—

🟢 Revenue has grown at 26.2% a year over 3 years.

🟢 EBITDA has grown at 42.1% a year over 3 years.

🟢 EBITDA Margin has risen from 36.8% to 52.5% over 3 years (+15.7 pts).

🟢 PAT (Net Profit) has grown at 75.0% a year over 3 years.

🟢 EPS has grown at 36.7% a year over 3 years.

🟢 ROE has risen from 2.3% to 6.2% over 3 years (+3.9 pts).

🟢 ROCE has risen from 6.2% to 9.0% over 3 years (+2.8 pts).

🔴 Total Debt has grown at 7.4% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹6 Cr to ₹182 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹6,302 Cr

Total Liabilities

₹3,638 Cr

Cash & Equivalents

₹130 Cr

Operating Cash Flow

₹187 Cr

Capex

-₹4 Cr

Shareholding (proxy)

Institutional Holding

3.3%

Insider Holding

49.7%

Corporate Actions

Ex-Dividend Date

17 Sept 2014

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

4 mixed2 general

Hubtown (HUBTOWN) Share/Stock Price Live, NSE

TechGraph, 09 Oct

We Ran A Stock Scan For Earnings Growth And Hubtown (NSE:HUBTOWN) Passed With Ease

Simply Wall Street, 12 JunResults

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

Hubtown Ltd. Share Price Up 9.01%: Price, Valuation View

Univest, 20 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.

Hubtown makes Q1 FY27 earnings call audio available online

scanx.trade, 04 AugResults

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

Hubtown Q1 PAT slides 69% YoY to Rs 25 crore

Business Standard, 04 AugResults

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

Hubtown Ltd Falls to 52-Week Low of Rs 165.1 as Sell-Off Deepens

MarketsMojo, 07 Oct

Watch Items

Revenue growth is negative (-17.0%) 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.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Valuation

MiddlingProfitability

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.

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