Marathon Nextgen Realty Limited

Real Estate — Real Estate - Development · NSE

₹384.00+₹21.95 (+6.06%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Reasonable but unspectacular business quality, though profits are falling even as sales grow. Debt is the main factor to watch.

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 Marathon Nextgen Realty Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Marathon Nextgen Realty Limited engages in real estate business in India. It constructs, develops, and sells commercial and residential real estate projects. The company was founded in 1969 and is based in Mumbai, India.

IndustryReal Estate - Development

SectorReal Estate

Employees81

Annual revenue₹483 Cr

How does it make money?

Turns over ₹483 Cr a year. Of every ₹100 of sales, about ₹42 reaches shareholders as profit, with ₹32 left at the operating level before interest, tax and depreciation. Each of its 81 employees supports ₹5.97 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹5.97 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 10.6% 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.

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 -31% while net margin moved +142% 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-31%

Margin effect+142%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.63 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✓ Profits have been consistent from year to year
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

57/ 100

Average

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 reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

12.6x

3Y Median

15.9x

40 monthly readings · mean 16.0x · range 10.2x–24.1x

Sector Median

30.2x

median of 3 sector peers

🟢Current valuation is approximately 21% below its 3y median of 15.9x. 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 58% below the peer median of 30.2x.

vs. its own history

Cheap

15.9x median over 40 months · -21%

vs. sector peers

Cheap

30.2x median of 3 peers · -58%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

16.8x

PEG

0.67

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 89% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 15.4% to 8.9% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 16.6% to 10.6% — often a sign of competition or overexpansion.

Red Flags

7 items require attention · 5 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 4.27x — 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.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 8.2 points, from 40.5% to 32.3%.
🔴Receivables growing faster than salesFinancial
Receivables up 32% against revenue up -31% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 62% against revenue up -31% — stock may not be moving.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹58 Cr in the latest year.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 46% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 89% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 21% 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 58% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

Margins are being competed away
EBITDA margin has fallen from 40.5% to 32.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 4.27x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 32% against revenue up -31%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 15.4% to 8.9%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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 30%✓ 32.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹58 Cr
Profit that never becomes cash eventually stops being profit.
3Debt / EBITDA stays below 2x✓ 0.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4ROCE stays above 8%✓ 10.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 15.9x✓ 12.6x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

5 / 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

₹2,590 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

12.6x

Cheap

Cheap against the generic band

P/B Ratio

1.12x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹30.59

Profitable

Profitable on a per-share basis

ROE

8.9%

Moderate

Moderate capital efficiency

ROCE

10.6%

Moderate

Moderate return on the capital in the business

Debt/Equity

4.27x

High

High leverage

Revenue Growth (YoY)

40.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-33.5%

Falling

Profits are shrinking

Dividend Yield

0.26%

Modest

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

Free Cash Flow

-₹58 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

23.4%

Good

Healthy core-business profitability

Net Margin

35.0%

Good

Strong bottom-line conversion

Current Ratio

4.87

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.63

Defensive

Steadier than the market

52W Range Position

12%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

385.7 / 396.7

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

36.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹698 Cr	₹705 Cr	₹555 Cr	₹483 Cr	-11.6%
EBITDA	₹283 Cr	₹274 Cr	₹210 Cr	₹156 Cr	-18.0%
EBITDA Margin	40.5%	38.9%	37.8%	32.3%	—
PAT (Net Profit)	₹121 Cr	₹166 Cr	₹187 Cr	₹203 Cr	+18.8%
EPS	₹25.21	₹32.5	₹37.19	₹30.59	+6.7%
ROE	15.4%	16.6%	15.7%	8.9%	—
ROCE	16.6%	16.0%	16.5%	10.6%	—
Total Debt	₹869 Cr	₹761 Cr	₹560 Cr	₹99 Cr	-51.5%
Free Cash Flow	₹314 Cr	₹21 Cr	-₹29 Cr	-₹58 Cr	—

🔴 Revenue has shrunk at 11.6% a year over 3 years.

🔴 EBITDA has shrunk at 18.0% a year over 3 years.

🔴 EBITDA Margin has fallen from 40.5% to 32.3% over 3 years (-8.2 pts).

🟢 PAT (Net Profit) has grown at 18.8% a year over 3 years.

🟢 EPS has grown at 6.7% a year over 3 years.

🔴 ROE has fallen from 15.4% to 8.9% over 3 years (-6.5 pts).

🔴 ROCE has fallen from 16.6% to 10.6% over 3 years (-6.0 pts).

🟢 Total Debt has shrunk at 51.5% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹314 Cr to -₹58 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,760 Cr

Total Liabilities

₹430 Cr

Cash & Equivalents

₹67 Cr

Operating Cash Flow

-₹54 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

12.1%

Insider Holding

62.8%

Corporate Actions

Dividend Rate

₹1

Ex-Dividend Date

18 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

1 mixed5 general

Marathon Nextgen Realty's (NSE:MARATHON) Shareholders May Want To Dig Deeper Than Statutory Profit

Simply Wall Street, 04 Jun

Marathon Nextgen Realty to consider Q2FY27 results on Oct 21

scanx.trade, 15 OctResults

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

Marathon Nextgen Realty vs Nifty 50: Returns Compared

Univest, 06 Oct

Marathon Nextgen Realty Share Price Update

Kalkine India, 24 Aug

Marathon Nextgen Realty - Unique Picks: 10 stocks held by a single MF scheme in July; rally up to 125% in 6 months

The Economic Times, 18 Aug

Marathon Nextgen Realty Ltd. Share Price Live Today

CNBC TV18, 03 Jan

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Valuation

MiddlingFinancial Health · Growth · 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. 5 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑