Navkar Urbanstructure Limited

Basic Materials — Building Materials · NSE

₹0.86+₹0.01 (+1.18%)

DalalBaazaar Score

66 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, 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. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Navkar Urbanstructure Limited engages in the construction and development of infrastructure projects in India.

IndustryBuilding Materials

SectorBasic Materials

Employees11

Annual revenue₹23 Cr

How does it make money?

Turns over ₹23 Cr a year. Of every ₹100 of sales, about ₹13 reaches shareholders as profit, with ₹26 left at the operating level before interest, tax and depreciation. Each of its 11 employees supports ₹2.12 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin25.5%

Net margin12.6%

Revenue / employee₹2.12 Cr

Who are its competitors?

The closest listed comparisons in its industry are ULTRATECH CEMENT LIMITED, GRASIM INDUSTRIES LTD, AMBUJA CEMENTS LTD, SHREE CEMENT LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

ULTRATECH CEMENT LIMITEDP/E 37.6x · ROE 11.1%

GRASIM INDUSTRIES LTDP/E 34.8x · ROE 5.5%

AMBUJA CEMENTS LTDP/E 20.4x · ROE 7.4%

SHREE CEMENT LIMITEDP/E 49.7x · ROE 7.0%

What is its competitive advantage?Little sign of one

Returns on capital of 2.7% 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.

ROCE2.7%

ROE1.8%

Peer median ROE7.4%

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 +96% while net margin moved +17% 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+96%

Margin effect+17%

DalalBaazaar Score

66/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.08 — 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

Quality vs. Valuation

Company Quality

65/ 100

Good

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 good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

14.3x

2Y Median

158.0x

23 monthly readings · mean 165.8x · range 28.3x–396.2x

Sector Median

36.2x

median of 4 sector peers

🟢Current valuation is approximately 91% below its 2y median of 158.0x. 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 60% below the peer median of 36.2x.

vs. its own history

Cheap

158.0x median over 23 months · -91%

vs. sector peers

Cheap

36.2x median of 4 peers · -60%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

14.3x

P/B

1.40x

EV/EBITDA

16.7x

PEG

0.45

Dividend Yield

1.16%

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 21.7% to 25.5% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Valuation below its historical average
At 14.3x the stock trades 91% below its own median of 158.0x.
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

2 items require attention · 2 high

🔴High leverageFinancial
Debt/Equity of 3.59x — 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.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 21.7% to 25.5%. 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 91% 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 60% 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?

Leverage amplifies any setback
Debt/Equity of 3.59x. Interest is payable whether or not the business has a good year.
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

1Revenue growth stays above 19% a year✓ 25.2% CAGR
Latest reported year was -70.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 24%✓ 25.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹1 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ 2.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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 · 2 neutral · 4 weak

Market Cap

₹96 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

14.3x

Cheap

Cheap against the generic band

P/B Ratio

1.40x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.06

Profitable

Profitable on a per-share basis

ROE

1.8%

Weak

Weak capital efficiency

ROCE

2.7%

Weak

Low return on total capital employed

Debt/Equity

3.59x

High

High leverage

Revenue Growth (YoY)

-70.5%

Shrinking

Sales are contracting

Profit Growth (YoY)

24.2%

Healthy

Profits growing at a healthy clip

Dividend Yield

1.16%

Modest

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

Free Cash Flow

₹1 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹0.86

Operating Margin

63.8%

Good

Healthy core-business profitability

Net Margin

13.3%

Good

Strong bottom-line conversion

Current Ratio

2.83

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.08

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

0.9 / 0.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

37.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹12 Cr	₹19 Cr	₹16 Cr	₹23 Cr	+25.2%
EBITDA	₹3 Cr	₹3 Cr	₹2 Cr	₹6 Cr	+32.1%
EBITDA Margin	21.7%	14.4%	12.1%	25.5%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹0 Cr	₹3 Cr	+31.7%
EPS	₹0.01	₹0.01	₹0.01	₹0.03	+35.7%
ROE	0.8%	0.6%	0.2%	1.8%	—
ROCE	0.9%	0.9%	0.5%	2.7%	—
Total Debt	₹5 Cr	₹14 Cr	₹6 Cr	₹6 Cr	+3.9%
Free Cash Flow	-₹6 Cr	₹3 Cr	₹0 Cr	₹1 Cr	—

🟢 Revenue has grown at 25.2% a year over 3 years.

🟢 EBITDA has grown at 32.1% a year over 3 years.

🟢 EBITDA Margin has risen from 21.7% to 25.5% over 3 years (+3.8 pts).

🟢 PAT (Net Profit) has grown at 31.7% a year over 3 years.

🟢 EPS has grown at 35.7% a year over 3 years.

🟢 ROE has risen from 0.8% to 1.8% over 3 years (+1.0 pts).

🟢 ROCE has risen from 0.9% to 2.7% over 3 years (+1.8 pts).

🔴 Total Debt has grown at 3.9% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹6 Cr to ₹1 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹222 Cr

Total Liabilities

₹62 Cr

Total Debt

₹6 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

₹1 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

67.0%

Corporate Actions

Dividend Rate

₹0.01

Ex-Dividend Date

18 Sept 2026

Peer Comparison

Company	P/E	ROE
ULTRATECH CEMENT LIMITED	37.6x	11.1%
GRASIM INDUSTRIES LTD	34.8x	5.5%
AMBUJA CEMENTS LTD	20.4x	7.4%
SHREE CEMENT LIMITED	49.7x	7.0%

Recent News

1 mixed5 general

Navkar Urbanstructure (NSEI:NAVKARURB) - Stock Analysis

Simply Wall Street, 14 Oct

Navkar Urbanstructure Ltd. Lower Circuit Streak: Day 2 Price and Data

Univest, 29 Sept

Navkar Urbanstructure closes trading window ahead of Q2FY27 results

scanx.trade, 24 SeptResults

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

Navkar Urbanstructure Share Price Forecast to 2030

Univest, 22 Jul

Navkar Urbanstructure - 13 penny stocks plunge up to 70% in CY26. Are you affected?

The Economic Times, 19 Apr

Navkar Urbanstructure to hold 34th AGM on September 30, 2026

scanx.trade, 09 Sept

Watch Items

Revenue growth is negative (-70.5%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟡Business QualityAdequate11.8/20

🟢Financial HealthStrong13.9/20

🟢GrowthStrong14.9/20

🟡ProfitabilityModerate7.9/15

🟢ValuationAttractive13.2/15

🔴RiskHigh3.9/10

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

This thesis breaks if

✓Revenue growth stays above 19% a year25.2% CAGR
✓EBITDA margin holds above 24%25.5%
✓Free cash flow remains positive₹1 Cr
✓Debt / EBITDA stays below 2x1.0x
✗ROCE stays above 8%2.7%