Mahesh Developers Limited

Real Estate — Real Estate - Development · BSE

₹15.90+₹0.70 (+4.61%)

DalalBaazaar Score

47 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, short-term liabilities exceed short-term assets, negative free cash flow.

In simple words: The business is earning a fairly low return on the money invested in it. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Mahesh Developers Limited engages in the construction business in India. It is involved in the community, recreational, residential, and commercial construction projects. The company was founded in 1970 and is based in Mumbai, India.

IndustryReal Estate - Development

SectorReal Estate

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 1.2% 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.

Peer median ROE10.3%

DalalBaazaar Score

47/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROCE of 1.2% is below 10% — capital is not working hard
✗ ROCE has fallen by 3.1 points — returns are eroding
✗ The business is lossmaking at the net level

Quality vs. Valuation

Company Quality

46/ 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.

Historical Valuation

Current P/E

49.7x

3Y Median

205.0x

40 monthly readings · mean 151.2x · range 43.5x–490.3x

Sector Median

30.2x

median of 3 sector peers

🟢Current valuation is approximately 76% below its 3y median of 205.0x. 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 65% above the peer median of 30.2x.

vs. its own history

Cheap

205.0x median over 40 months · -76%

vs. sector peers

Expensive

30.2x median of 3 peers · +65%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

93.5x

PEG

1.76

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 4.3% to 1.2% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 53% over 3 years, from ₹8 Cr to ₹12 Cr.
🔴High leverageFinancial
Debt/Equity of 2.85x — earnings must service borrowings before shareholders see anything.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹1 Cr in the latest year.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.29 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 76% 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.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

The debt load needs earnings to hold up
Debt is 62.2x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
A premium to the sector to defend
It trades 65% above the peer median. That premium needs a reason that persists, or it closes.
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

1Debt / EBITDA falls below 3x✗ 62.2x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
2Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
3ROCE stays above 8%✗ 1.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
4Valuation vs its own median of 205.0x✓ 49.7x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

1 / 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)
✗ 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

1 good · 4 neutral · 6 weak

Market Cap

₹7 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

49.7x

Expensive

Expensive — verify against sector peers

P/B Ratio

1.52x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹0.32

Profitable

Profitable on a per-share basis

ROE

3.4%

Weak

Weak capital efficiency

ROCE

1.2%

Weak

Low return on total capital employed

Debt/Equity

2.85x

High

High leverage

Revenue Growth (YoY)

Not available

No data

Source didn't return this field

Profit Growth (YoY)

-50.0%

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

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

0.0%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.29

Tight

Tight short-term liquidity

Beta (vs Nifty)

-0.70

Defensive

Steadier than the market

52W Range Position

11%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

15.5 / 17.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

32.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
EBITDA	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	-27.4%
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	+28.3%
EPS	₹0.16	₹0.06	₹0.06	₹0.33	+27.3%
ROE	1.7%	0.6%	0.6%	3.4%	—
ROCE	4.3%	1.7%	0.2%	1.2%	—
Total Debt	₹8 Cr	₹11 Cr	₹11 Cr	₹12 Cr	+15.3%
Free Cash Flow	₹8 Cr	₹0 Cr	₹1 Cr	-₹1 Cr	—

🔴 EBITDA has shrunk at 27.4% a year over 3 years.

🟢 PAT (Net Profit) has grown at 28.3% a year over 3 years.

🟢 EPS has grown at 27.3% a year over 3 years.

🟢 ROE has risen from 1.7% to 3.4% over 3 years (+1.7 pts).

🔴 ROCE has fallen from 4.3% to 1.2% over 3 years (-3.1 pts).

🔴 Total Debt has grown at 15.3% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹8 Cr to -₹1 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹49 Cr

Total Liabilities

₹45 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹1 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

74.9%

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

Mahesh Developers AGM resolutions pass with 99% voting support

scanx.trade, 30 Sept

DIGGI MULTITRADE Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 15 Oct

Mahesh Developers (BSE:542677) - Stock Analysis

Simply Wall Street, 24 Sept

Mahesh Developers Limited Appoints Ms. Barsha as Company Secretary and Compliance Officer

scanx.trade, 21 Mar

Stocks to Watch Today: Dr Reddys Labs, Zydus Lifesciences, NCC, Pace Digitek, BL Kashyap, Jindal Saw,...

Moneycontrol.com, 19 Feb

RUNWAL ENTERPRISES LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 05 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

StrongGrowth

MiddlingValuation

WeakBusiness Quality · Financial Health · Profitability · Risk

Points for each in the Score ↑

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

3 of 4 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑