Narendra Properties Limited

Real Estate — Real Estate - Development · BSE

₹34.60−₹0.40 (−1.14%)

DalalBaazaar Score

57 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

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

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Whether sales start growing again is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

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

What does this company do?

Narendra Properties Limited engages in the property development and civil construction activities in India. It is involved in the development projects of residential and commercial multi-storied apartment complexes.

IndustryReal Estate - Development

SectorReal Estate

Employees8

Annual revenue₹6 Cr

How does it make money?

Turns over ₹6 Cr a year. Of every ₹100 of sales, about ₹31 reaches shareholders as profit, with ₹43 left at the operating level before interest, tax and depreciation. Each of its 8 employees supports ₹79.7 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹79.7 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?Little sign of one

Returns on capital of 6.8% 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?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved -43% while net margin moved -19% 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-43%

Margin effect-19%

DalalBaazaar Score

57/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 17.2% a year
✗ Profit has declined at 22.9% a year
✗ Latest-year revenue growth of -55.0% is below the longer-term trend — momentum is fading

Quality vs. Valuation

Company Quality

55/ 100

Average

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

Valuation

77/ 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

11.7x

3Y Median

12.5x

40 monthly readings · mean 15.9x · range 4.5x–32.3x

Sector Median

30.2x

median of 3 sector peers

🟡Currently trading close to its 3y median of 12.5x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 61% below the peer median of 30.2x.

vs. its own history

Fair

12.5x median over 40 months · -6%

vs. sector peers

Cheap

30.2x median of 3 peers · -61%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

8.6x

PEG

0.78

What's Good / What's Bad

🟢 What's Going Well1

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

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 12.0% to 5.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 15.7% to 6.8% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 2 high · 1 watch

🔴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 7.6 points, from 50.2% to 42.7%.
🟡Profit is decliningFinancial
Net profit is down 54% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Cheaper than its peers
It trades 61% 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 50.2% to 42.7%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Returns on shareholder capital are falling
ROE has dropped from 12.0% to 5.1%. 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.
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
2 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

1EBITDA margin holds above 41%✓ 42.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹4 Cr
Profit that never becomes cash eventually stops being profit.
3ROCE stays above 8%✗ 6.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
4Valuation vs its own median of 12.5x✓ 11.7x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 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
✓ 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

6 good · 2 neutral · 3 weak

Market Cap

₹25 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

11.7x

Cheap

Cheap against the generic band

P/B Ratio

0.61x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹2.95

Profitable

Profitable on a per-share basis

ROE

5.1%

Weak

Weak capital efficiency

ROCE

6.8%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

-55.0%

Shrinking

Sales are contracting

Profit Growth (YoY)

15.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

2.89%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹4 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

-28.7%

Weak

Thin margins leave little room for error

Net Margin

57.5%

Good

Strong bottom-line conversion

Current Ratio

171.34

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.15

Defensive

Steadier than the market

52W Range Position

37%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

35.4 / 37.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

47.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹11 Cr	₹19 Cr	₹7 Cr	₹6 Cr	-17.2%
EBITDA	₹6 Cr	₹3 Cr	₹1 Cr	₹3 Cr	-21.5%
EBITDA Margin	50.2%	16.2%	17.3%	42.7%	—
PAT (Net Profit)	₹4 Cr	₹2 Cr	₹1 Cr	₹2 Cr	-22.9%
EPS	₹6.05	₹3.16	₹1.3	₹2.78	-22.8%
ROE	12.0%	6.0%	2.5%	5.1%	—
ROCE	15.7%	8.1%	3.3%	6.8%	—
Free Cash Flow	₹4 Cr	-₹0 Cr	₹8 Cr	₹4 Cr	-2.6%

🔴 Revenue has shrunk at 17.2% a year over 3 years.

🔴 EBITDA has shrunk at 21.5% a year over 3 years.

🔴 EBITDA Margin has fallen from 50.2% to 42.7% over 3 years (-7.6 pts).

🔴 PAT (Net Profit) has shrunk at 22.9% a year over 3 years.

🔴 EPS has shrunk at 22.8% a year over 3 years.

🔴 ROE has fallen from 12.0% to 5.1% over 3 years (-6.9 pts).

🔴 ROCE has fallen from 15.7% to 6.8% over 3 years (-8.9 pts).

🔴 Free Cash Flow has shrunk at 2.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹39 Cr

Total Liabilities

₹0 Cr

Total Debt

—

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹4 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

84.7%

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

2 mixed4 general

CITADEL Stock Price and Chart — BSE:CITADEL

TradingView, 18 Sept

Bharathi Narendra Gala reduces stake in Enbee Trade

scanx.trade, 04 Jun

Lemon Tree Hotels gains on inking two resort properties in Maharashtra

Business Standard, 19 Jun

Q4 results 2026: HUL to Adani Enterprises among companies to declare Q4 results today; check full list here

Livemint, 30 AprResults

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

Narendra Properties Ltd Share Price

Business Today, 31 Jan

Godrej Properties falls 5% despite strong Q4; brokerages see up to 15% gain

Business Standard, 05 MayResults

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

Watch Items

Revenue growth is negative (-55.0%) on the latest reported period — check if this is one-off or a trend.
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

StrongFinancial Health · Valuation

MiddlingBusiness Quality · Profitability

WeakGrowth · 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. 2 high-severity red flags sit above this conclusion and should be read first.

1 of 4 tripwires tripped — ROCE stays above 8% · see Key things to watch ↑