Lancor Holdings Limited

Real Estate — Real Estate - Development · NSE

₹32.70+₹1.31 (+4.17%)

DalalBaazaar Score

68 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

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

In simple words: Strong business and financial position, with modest growth. Cash generation is currently 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 Lancor Holdings Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Lancor Holdings Limited, together with its subsidiaries, engages in the development of residential and commercial properties in India. The company is also involved in the leasing of commercial properties and allied activities.

IndustryReal Estate - Development

SectorReal Estate

Employees150

Annual revenue₹131 Cr

How does it make money?

Turns over ₹131 Cr a year. Of every ₹100 of sales, about ₹31 reaches shareholders as profit, with ₹57 left at the operating level before interest, tax and depreciation. Each of its 150 employees supports ₹87.1 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹87.1 lakh

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 23.4% 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 has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +14% while net margin moved -10530% 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+14%

Margin effect-10530%

DalalBaazaar Score

68/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue CAGR of only 4.6% — barely ahead of inflation

Quality vs. Valuation

Company Quality

68/ 100

Good

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

Valuation

88/ 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

4.2x

2Y Median

36.1x

28 monthly readings · mean 29.2x · range 5.8x–43.3x

Sector Median

30.2x

median of 3 sector peers

🟢Current valuation is approximately 88% below its 2y median of 36.1x. 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 86% below the peer median of 30.2x.

vs. its own history

Cheap

36.1x median over 28 months · -88%

vs. sector peers

Cheap

30.2x median of 3 peers · -86%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

4.6x

PEG

—

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 20.3% to 57.0% over 3 years.
Return on equity is rising
ROE has improved from -0.3% to 16.9%.
Return on capital is rising
ROCE has improved from 11.5% to 23.4%.
High return on capital employed
ROCE of 23.4% 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 watch

🟡Free cash flow is negativeFinancial
Free cash flow was -₹1 Cr in the latest year.
🟡Inventory building faster than salesFinancial
Inventory up 53% against revenue up 14% — stock may not be moving.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 21% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 23.4% 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.
Margin expansion has further to run
EBITDA margin has risen from 20.3% to 57.0%. 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 88% 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 86% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Growth barely outpaces inflation
Revenue compounding at 4.6% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
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

1EBITDA margin holds above 55%✓ 57.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
3Interest cover stays above 3x✗ 2.9x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 4% a year✓ 4.6% CAGR
Latest reported year was 8.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Debt / EBITDA stays below 2x✓ 1.4x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.

Investment Checklist

10 / 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

7 good · 3 neutral · 1 weak

Market Cap

₹241 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

4.2x

Cheap

Cheap against the generic band

P/B Ratio

1.00x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹7.85

Profitable

Profitable on a per-share basis

ROE

16.9%

Strong

Strong capital efficiency

ROCE

23.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.45x

Low

Conservative leverage

Revenue Growth (YoY)

8.4%

Modest

Modest growth

Profit Growth (YoY)

11650.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.61%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

16.4%

Good

Healthy core-business profitability

Net Margin

42.7%

Good

Strong bottom-line conversion

Current Ratio

2.88

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.23

Defensive

Steadier than the market

52W Range Position

62%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

32.2 / 32.2

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

44.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹114 Cr	₹138 Cr	₹190 Cr	₹131 Cr	+4.6%
EBITDA	₹23 Cr	₹25 Cr	₹34 Cr	₹74 Cr	+47.6%
EBITDA Margin	20.3%	18.1%	17.7%	57.0%	—
PAT (Net Profit)	-₹0 Cr	₹7 Cr	₹5 Cr	₹40 Cr	—
EPS	₹-0.06	₹1.11	₹0.64	₹5.52	—
ROE	-0.3%	4.9%	2.4%	16.9%	—
ROCE	11.5%	13.5%	10.4%	23.4%	—
Total Debt	₹110 Cr	₹95 Cr	₹153 Cr	₹107 Cr	-1.1%
Free Cash Flow	₹86 Cr	₹25 Cr	-₹74 Cr	-₹1 Cr	—

🟢 Revenue has grown at 4.6% a year over 3 years.

🟢 EBITDA has grown at 47.6% a year over 3 years.

🟢 EBITDA Margin has risen from 20.3% to 57.0% over 3 years (+36.8 pts).

🟢 PAT (Net Profit) has turned positive, from -₹0 Cr to ₹40 Cr.

🟢 EPS has turned positive, from ₹-0.06 to ₹5.52.

🟢 ROE has risen from -0.3% to 16.9% over 3 years (+17.2 pts).

🟢 ROCE has risen from 11.5% to 23.4% over 3 years (+11.9 pts).

🟡 Total Debt has been broadly flat over 3 years (-1.1% a year).

🔴 Free Cash Flow has turned negative, from ₹86 Cr to -₹1 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹425 Cr

Total Liabilities

₹186 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹10 Cr

Capex

-₹11 Cr

Shareholding (proxy)

Institutional Holding

1.0%

Insider Holding

62.9%

Corporate Actions

Dividend Rate

₹0.2

Ex-Dividend Date

21 Sept 2026

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

Here's Why Lancor Holdings (NSE:LANCORHOL) Has Caught The Eye Of Investors

Simply Wall Street, 17 Oct

Lancor Holdings Upper Circuit Streak: Day 2 Price and Data

Univest, 14 Oct

Lancor Holdings Ltd. Peer Comparison – Compare with Others

Value Research, 30 Aug

Lancor Holdings | Stock Share Price Live

MarketSmith India, 14 May

Lancor Holdings Consolidated March 2026 Net Sales at Rs 17.86 crore, down 65.39% Y-o-Y

Moneycontrol.com, 09 Jun

Supreme Court dismisses Lancor Holdings curative petition in property dispute

scanx.trade, 24 Sept

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Profitability · Valuation

WeakGrowth · Risk

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 — Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑