Kolte-Patil Developers Limited

Real Estate — Real Estate - Development · NSE

₹431.90+₹5.35 (+1.25%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by moderate debt load, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

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

What does this company do?

Kolte-Patil Developers Limited operates as a real estate development company in India.

IndustryReal Estate - Development

SectorReal Estate

Employees878

Annual revenue₹1,717 Cr

How does it make money?

Turns over ₹1,717 Cr a year. Of every ₹100 of sales, about ₹6 reaches shareholders as profit, with ₹13 left at the operating level before interest, tax and depreciation. Each of its 878 employees supports ₹1.96 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.96 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?Some evidence

ROCE of 23.9% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE10.3%

What is the outlook?

3 analysts covering the stock expect revenue to grow about 24.6% and earnings to grow about 47.6% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+24.6%

Est. earnings growth+47.6%

Analysts3

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +54% while net margin moved -13% 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+54%

Margin effect-13%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.34 — 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

65/ 100

Good

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

Valuation

49/ 100

Fair

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

30.8x

4Y Median

30.3x

52 monthly readings · mean 29.8x · range 18.3x–41.5x

Sector Median

30.2x

median of 3 sector peers

🟡Currently trading close to its 4y median of 30.3x — the market is paying about what it usually pays for this company.

🟡Against its sector it is priced broadly in line with the peer median of 30.2x.

vs. its own history

Fair

30.3x median over 52 months · +1%

vs. sector peers

Fair

30.2x median of 3 peers · +2%

vs. generic bands

Fair

15x–35x

EV/EBITDA

21.6x

PEG

2.99

What's Good / What's Bad

🟢 What's Going Well2

Return on capital is rising
ROCE has improved from 16.5% to 23.9%.
High return on capital employed
ROCE of 23.9% is the mark of a business that converts capital into profit efficiently.

🔴 What Needs Attention0

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

Red Flags

3 items require attention · 3 high

🔴Debt has risen sharplyFinancial
Total debt is up 111% over 3 years, from ₹541 Cr to ₹1,139 Cr.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 5.3 points, from 18.2% to 12.9%.
🔴Receivables growing faster than salesFinancial
Receivables up 141% against revenue up 54% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 23.9% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 18.2% to 12.9%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 5.1x 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 141% against revenue up 54%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
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 12% a year✓ 15.4% CAGR
Latest reported year was 1016.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 11%✓ 12.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 5.1x
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✓ ₹224 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 21%✓ 23.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 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
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 6 neutral · 0 weak

Market Cap

₹3,830 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

30.8x

Fair

Fairly valued against the generic band

P/B Ratio

3.17x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹14.04

Profitable

Profitable on a per-share basis

ROE

12.8%

Moderate

Moderate capital efficiency

ROCE

23.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.98x

Moderate

Moderate leverage

Revenue Growth (YoY)

1016.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

253.7%

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

₹224 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

14.2x

Improving

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

Operating Margin

20.1%

Good

Healthy core-business profitability

Net Margin

7.9%

Average

Average bottom-line conversion

Current Ratio

1.03

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.34

Defensive

Steadier than the market

52W Range Position

53%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

429.5 / 444.4

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

48.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY22	FY23	FY24	FY25	3Y CAGR
Revenue	₹1,117 Cr	₹1,488 Cr	₹1,371 Cr	₹1,717 Cr	+15.4%
EBITDA	₹204 Cr	₹208 Cr	₹33 Cr	₹222 Cr	+2.9%
EBITDA Margin	18.2%	14.0%	2.4%	12.9%	—
PAT (Net Profit)	₹79 Cr	₹104 Cr	-₹69 Cr	₹107 Cr	+10.3%
EPS	₹10.45	₹13.69	₹-9.12	₹13.99	+10.2%
ROE	10.2%	11.7%	-9.2%	12.8%	—
ROCE	16.5%	15.2%	1.8%	23.9%	—
Total Debt	₹541 Cr	₹561 Cr	₹1,117 Cr	₹1,139 Cr	+28.2%
Free Cash Flow	₹343 Cr	₹179 Cr	-₹154 Cr	₹224 Cr	-13.2%

🟢 Revenue has grown at 15.4% a year over 3 years.

🟢 EBITDA has grown at 2.9% a year over 3 years.

🔴 EBITDA Margin has fallen from 18.2% to 12.9% over 3 years (-5.3 pts).

🟢 PAT (Net Profit) has grown at 10.3% a year over 3 years.

🟢 EPS has grown at 10.2% a year over 3 years.

🟢 ROE has risen from 10.2% to 12.8% over 3 years (+2.6 pts).

🟢 ROCE has risen from 16.5% to 23.9% over 3 years (+7.3 pts).

🔴 Total Debt has grown at 28.2% a year over 3 years.

🔴 Free Cash Flow has shrunk at 13.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2025

Total Assets

₹5,304 Cr

Total Liabilities

₹4,467 Cr

Cash & Equivalents

₹180 Cr

Operating Cash Flow

₹282 Cr

Capex

-₹57 Cr

Shareholding (proxy)

Institutional Holding

46.7%

Insider Holding

37.1%

Corporate Actions

Ex-Dividend Date

09 Aug 2024

Analyst Consensus

Recommendations

3 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹528

+22.3% vs CMP

Target Range

₹513 – ₹545

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

3 positive3 mixed

Kolte-Patil Q2 Sales Jump 52% to ₹1,019 Crore

HDFC Sky, 13 OctResults

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

Kolte-Patil Developers Share Price: price rise and valuation

Univest, 09 OctPrice 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.

Kolte-Patil Developers shares gain after record Q2 sales and launch performance

CNBC TV18, 13 OctPrice 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.

Kolte-Patil shares zoom 19% to hit fresh 52-wk high after Q1 turnaround

Business Standard, 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.

Bullish: Analysts Just Made An Incredible Upgrade To Their Kolte-Patil Developers Limited (NSE:KOLTEPATIL) Forecasts

Simply Wall Street, 17 AugAnalyst view

🟢Potentially positiveAn analyst opinion changing, which moves the price without changing the business.

Kolte Patil Q2FY27 Results: Sales jump 52% YoY to record ₹1,019 crore

scanx.trade, 13 OctResults

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

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health

MiddlingGrowth · Profitability · Valuation

WeakRisk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 3 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Debt / EBITDA falls below 3x · see Key things to watch ↑