Kamanwala Housing Construction Limited

Real Estate — Real Estate - Development · NSE

₹17.00₹0.00 (0.00%)

DalalBaazaar Score

50 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, the company is currently loss-making, micro-cap size, which brings thin liquidity.

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, 6:09 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 Kamanwala Housing Construction Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Kamanwala Housing Construction Limited engages in the real estate development business in India. It is also involved in the construction of residential and commercial buildings, and related activities.

IndustryReal Estate - Development

SectorReal Estate

Employees3

Annual revenue₹8 Cr

How does it make money?

Turns over ₹8 Cr a year. Of every ₹100 of sales, about ₹-37 reaches shareholders as profit, with ₹24 left at the operating level before interest, tax and depreciation. Each of its 3 employees supports ₹2.61 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin24.3%

Net margin-36.6%

Revenue / employee₹2.61 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.

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 -2.6% 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-2.6%

ROE-2.5%

Peer median ROE10.3%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +102% while net margin moved -83% 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+102%

Margin effect-83%

DalalBaazaar Score

50/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative
✓ ROE has improved by 8.9 points over the period

Quality vs. Valuation

Company Quality

51/ 100

Average

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

Valuation

44/ 100

Expensive

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.

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

0.21x

EV/EBITDA

8.1x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from -1.5% to 24.3% over 3 years.
Return on equity is rising
ROE has improved from -11.4% to -2.5%.
Return on capital is rising
ROCE has improved from -12.2% to -2.6%.
Very low debt
Debt/Equity of 0.15x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention2

Debt is rising
Total debt is up 825% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.

Red Flags

5 items require attention · 4 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 825% over 3 years, from ₹2 Cr to ₹17 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only -8.0x — little room if earnings dip.
🔴Free cash flow negative for 3 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 -₹3 Cr in the latest reported year.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 159.8x to -8.0x.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -1.5% to 24.3%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 8.9x 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.
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

1Revenue growth stays above 20% a year✓ 26.4% CAGR
Latest reported year was -31.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 22%✓ 24.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 8.9x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹21 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ -8.0x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

5 / 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

3 good · 2 neutral · 6 weak

Market Cap

₹24 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

0.21x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-1.88

Loss-making

Negative earnings per share — the business is losing money

ROE

-2.5%

Weak

Weak capital efficiency

ROCE

-2.6%

Weak

Low return on total capital employed

Debt/Equity

0.15x

Low

Conservative leverage

Revenue Growth (YoY)

-31.5%

Shrinking

Sales are contracting

Profit Growth (YoY)

750.0%

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

-₹21 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹17

Operating Margin

-41.6%

Weak

Thin margins leave little room for error

Net Margin

-33.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

5.73

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.22

Defensive

Steadier than the market

52W Range Position

44%

Mid-range

Technical Snapshot

RSI (14)

46.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹4 Cr	₹3 Cr	₹11 Cr	₹8 Cr	+26.4%
EBITDA	-₹0 Cr	₹0 Cr	₹1 Cr	₹2 Cr	—
EBITDA Margin	-1.5%	7.6%	10.5%	24.3%	—
PAT (Net Profit)	-₹8 Cr	-₹2 Cr	₹46 Cr	-₹3 Cr	—
EPS	₹-5.98	₹-1.64	₹32.31	₹-2.03	—
ROE	-11.4%	-3.3%	39.5%	-2.5%	—
ROCE	-12.2%	-3.4%	44.2%	-2.6%	—
Total Debt	₹2 Cr	₹2 Cr	₹1 Cr	₹17 Cr	+109.9%
Free Cash Flow	₹1 Cr	-₹1 Cr	-₹7 Cr	-₹21 Cr	—

🟢 Revenue has grown at 26.4% a year over 3 years.

🟢 EBITDA has turned positive, from -₹0 Cr to ₹2 Cr.

🟢 EBITDA Margin has risen from -1.5% to 24.3% over 3 years (+25.9 pts).

🟢 ROE has risen from -11.4% to -2.5% over 3 years (+8.9 pts).

🟢 ROCE has risen from -12.2% to -2.6% over 3 years (+9.5 pts).

🔴 Total Debt has grown at 109.9% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹1 Cr to -₹21 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹130 Cr

Total Liabilities

₹20 Cr

Total Debt

₹17 Cr

Cash & Equivalents

₹26 Cr

Operating Cash Flow

-₹19 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

56.8%

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

6 general

Kamanwala Housing Construction Limited (KAMANWALA) Share Price NSE

TechGraph, 07 Oct

Kamanwala Housing Construction Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 02 Sept

Kamanwala Housing & Construction Ltd.

Stocktwits, 19 Aug

Kamanwala Housing Construction Limited Submits Q4FY26 Confirmation Certificate Under SEBI Regulations

scanx.trade, 03 Apr

Volume Gainers on August 19, 2026 at 3:00 PM IST

HDFC Sky, 19 Aug

Bharat Global Developers Ltd leads losers in 'B' group

Business Standard, 02 Sept

Watch Items

Revenue growth is negative (-31.5%) 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.

DalalBaazaar Thesis

🟡Business QualityAdequate10.3/20

🟡Financial HealthAdequate10.1/20

🟢GrowthStrong13/20

🔴ProfitabilityWeak5/15

🟡ValuationFair7.1/15

🔴RiskHigh4/10

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

This thesis breaks if

✓Revenue growth stays above 20% a year26.4% CAGR
✓EBITDA margin holds above 22%24.3%
✗Debt / EBITDA falls below 3x8.9x
✗Free cash flow remains positive-₹21 Cr
✗Interest cover stays above 3x-8.0x