Modi's Navnirman Limited

Real Estate — Real Estate - Development · NSE

₹411.00+₹8.85 (+2.20%)

DalalBaazaar Score

66 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

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

In simple words: Strong business and financial position, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:59 pm

Understanding the Business

Company site ↗

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

What does this company do?

Modi's Navnirman Limited engages in the real estate business in India. The company develops residential and commercial and other projects. Modi's Navnirman Limited was founded in 2010 and is based in Mumbai, India.

IndustryReal Estate - Development

SectorReal Estate

Employees28

Annual revenue₹189 Cr

How does it make money?

Turns over ₹189 Cr a year. Of every ₹100 of sales, about ₹15 reaches shareholders as profit, with ₹20 left at the operating level before interest, tax and depreciation. Each of its 28 employees supports ₹6.76 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹6.76 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 23.6% 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?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +389% while net margin moved +4% 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+389%

Margin effect+4%

DalalBaazaar Score

66/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.00 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

74/ 100

Good

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

Valuation

58/ 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

26.1x

1.1Y Median

27.6x

13 monthly readings · mean 28.4x · range 25.0x–33.5x

Sector Median

30.2x

median of 3 sector peers

🟡Currently trading close to its 1.1y median of 27.6x — 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

27.6x median over 13 months · -5%

vs. sector peers

Fair

30.2x median of 3 peers · -13%

vs. generic bands

Fair

15x–35x

EV/EBITDA

21.1x

PEG

0.36

What's Good / What's Bad

🟢 What's Going Well3

Debt is being paid down
Total debt is down 16% over 3 years.
High return on capital employed
ROCE of 23.6% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

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

Red Flags

4 items require attention · 3 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 4.03x — earnings must service borrowings before shareholders see anything.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴Receivables growing faster than salesFinancial
Receivables up 778% against revenue up 389% — sales are being booked faster than they are collected.
🟡Margins are compressingFinancial
EBITDA margin is down 4.0 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 23.6% 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.
Deleveraging frees up earnings
Debt is down 16% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
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 24.3% to 20.2%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 4.03x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 778% against revenue up 389%. 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 52% a year✓ 69.7% CAGR
Latest reported year was 27.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 18%✓ 20.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹2 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 21%✓ 23.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 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

5 good · 3 neutral · 3 weak

Market Cap

₹805 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

26.1x

Fair

Fairly valued against the generic band

P/B Ratio

5.14x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹15.74

Profitable

Profitable on a per-share basis

ROE

18.6%

Strong

Strong capital efficiency

ROCE

23.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

4.03x

High

High leverage

Revenue Growth (YoY)

27.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

25.6%

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

-₹2 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

19.8%

Good

Healthy core-business profitability

Net Margin

15.3%

Good

Strong bottom-line conversion

Current Ratio

2.09

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.00

Defensive

Steadier than the market

52W Range Position

85%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

378.3 / 382.7

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

70.2

Overbought zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹39 Cr	₹58 Cr	₹103 Cr	₹189 Cr	+69.7%
EBITDA	₹9 Cr	₹9 Cr	₹29 Cr	₹38 Cr	+59.8%
EBITDA Margin	24.3%	15.7%	27.8%	20.2%	—
PAT (Net Profit)	₹6 Cr	₹7 Cr	₹23 Cr	₹29 Cr	+71.7%
EPS	₹3.41	₹3.51	₹11.8	₹14.89	+63.4%
ROE	17.9%	6.9%	18.1%	18.6%	—
ROCE	23.6%	9.1%	21.6%	23.6%	—
Total Debt	₹7 Cr	₹7 Cr	₹4 Cr	₹6 Cr	-5.5%
Free Cash Flow	-₹7 Cr	-₹6 Cr	-₹20 Cr	-₹2 Cr	—

🟢 Revenue has grown at 69.7% a year over 3 years.

🟢 EBITDA has grown at 59.8% a year over 3 years.

🔴 EBITDA Margin has fallen from 24.3% to 20.2% over 3 years (-4.0 pts).

🟢 PAT (Net Profit) has grown at 71.7% a year over 3 years.

🟢 EPS has grown at 63.4% a year over 3 years.

🟡 ROE has held roughly flat at 18.6% over 3 years.

🟡 ROCE has held roughly flat at 23.6% over 3 years.

🟢 Total Debt has shrunk at 5.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹305 Cr

Total Liabilities

₹148 Cr

Cash & Equivalents

₹5 Cr

Operating Cash Flow

-₹2 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

79.0%

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

Modi's Navnirman certifies SDD compliance for quarter ended Sep 30, 2026

scanx.trade, 10 OctResults

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

Is Modis Navnirman the Best Stock in Its Sector? A Look at the Numbers

Univest, 01 Oct

Modi's Navnirman Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 04 Sept

Modis Navnirman Share Price Forecast: 3 Year Outlook to 2030

Univest, 21 Jul

Modis Navnirman to attend virtual investor conference on Sep 28

scanx.trade, 22 Sept

Modi's Navnirman Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 27 Aug

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Profitability

MiddlingFinancial Health

WeakValuation · Risk

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 — Free cash flow remains positive · see Key things to watch ↑