Pansari Developers Limited

Real Estate — Real Estate - Development · NSE

₹252.50−₹11.90 (−4.50%)

DalalBaazaar Score

70 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

Driven by negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:08 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Pansari Developers Limited operates as a construction and real estate development company in India. The company constructs and develops residential and commercial properties; and sells residential units and land, as well as engages in the leasing and maintenance of properties.

IndustryReal Estate - Development

SectorReal Estate

Employees33

Annual revenue₹82 Cr

How does it make money?

Turns over ₹82 Cr a year. Of every ₹100 of sales, about ₹22 reaches shareholders as profit, with ₹26 left at the operating level before interest, tax and depreciation. Each of its 33 employees supports ₹2.49 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin26.1%

Net margin22.4%

Revenue / employee₹2.49 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.

DLF LIMITEDP/E 36.6x · ROE 10.3%

GODREJ PROPERTIES LTDP/E 30.2x · ROE 8.4%

OBEROI REALTY LIMITEDP/E 23.5x · ROE 14.7%

What is its competitive advantage?Some evidence

ROCE of 18.5% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE18.5%

ROE12.8%

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 +261% while net margin moved +154% 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+261%

Margin effect+154%

DalalBaazaar Score

70/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of -0.51 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ 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

71/ 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

22.3x

3Y Median

67.9x

40 monthly readings · mean 65.6x · range 23.9x–115.8x

Sector Median

30.2x

median of 3 sector peers

🟢Current valuation is approximately 67% below its 3y median of 67.9x. 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 26% below the peer median of 30.2x.

vs. its own history

Cheap

67.9x median over 40 months · -67%

vs. sector peers

Cheap

30.2x median of 3 peers · -26%

vs. generic bands

Fair

15x–35x

P/E (Trailing)

22.3x

P/B

2.86x

EV/EBITDA

25.0x

PEG

0.20

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 22.8% to 26.1% over 3 years.
Return on equity is rising
ROE has improved from 1.7% to 12.0%.
Return on capital is rising
ROCE has improved from 2.5% to 18.5%.
Valuation below its historical average
At 22.3x the stock trades 67% below its own median of 67.9x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Free cash flow is negative
The business is not currently covering its capital spending from operations.

Red Flags

1 item require attention · 1 high

🔴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.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 18.5% 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.
Margin expansion has further to run
EBITDA margin has risen from 22.8% to 26.1%. 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 67% 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 26% 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?

The debt load needs earnings to hold up
Debt is 4.7x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
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 40% a year✓ 53.4% CAGR
Latest reported year was -35.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 24%✓ 26.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 4.7x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Free cash flow remains positive✗ -₹9 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 15%✓ 18.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 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

3 good · 6 neutral · 2 weak

Market Cap

₹441 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

22.3x

Fair

Fairly valued against the generic band

P/B Ratio

2.86x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹11.31

Profitable

Profitable on a per-share basis

ROE

12.8%

Moderate

Moderate capital efficiency

ROCE

18.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.65x

Moderate

Moderate leverage

Revenue Growth (YoY)

-35.0%

Shrinking

Sales are contracting

Profit Growth (YoY)

26.5%

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

-₹12 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹252.5

ROA

1.7%

Weak

Assets generate little profit

Operating Margin

-6.6%

Weak

Thin margins leave little room for error

Net Margin

19.5%

Good

Strong bottom-line conversion

Current Ratio

1.15

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

-0.51

Defensive

Steadier than the market

52W Range Position

12%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

271.0 / 293.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

34.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹23 Cr	₹48 Cr	₹30 Cr	₹82 Cr	+53.4%
EBITDA	₹5 Cr	₹12 Cr	₹17 Cr	₹21 Cr	+60.4%
EBITDA Margin	22.8%	25.9%	57.3%	26.1%	—
PAT (Net Profit)	₹2 Cr	₹5 Cr	₹8 Cr	₹18 Cr	+109.4%
EPS	₹1.15	₹2.98	₹4.3	₹10.58	+109.5%
ROE	1.7%	4.1%	5.6%	12.0%	—
ROCE	2.5%	7.5%	9.7%	18.5%	—
Total Debt	₹81 Cr	₹86 Cr	₹101 Cr	₹100 Cr	+7.2%
Free Cash Flow	-₹23 Cr	-₹0 Cr	-₹16 Cr	-₹9 Cr	—

🟢 Revenue has grown at 53.4% a year over 3 years.

🟢 EBITDA has grown at 60.4% a year over 3 years.

🟢 EBITDA Margin has risen from 22.8% to 26.1% over 3 years (+3.3 pts).

🟢 PAT (Net Profit) has grown at 109.4% a year over 3 years.

🟢 EPS has grown at 109.5% a year over 3 years.

🟢 ROE has risen from 1.7% to 12.0% over 3 years (+10.3 pts).

🟢 ROCE has risen from 2.5% to 18.5% over 3 years (+15.9 pts).

🔴 Total Debt has grown at 7.2% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹484 Cr

Total Liabilities

₹330 Cr

Total Debt

₹100 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

-₹9 Cr

Capex

—

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 positive2 mixed3 general

Pansari Developers Share Price Target 2027: Base and Bull Targets Built on FY26 Earnings

Univest, 09 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Here's Why We Think Pansari Developers (NSE:PANSARI) Is Well Worth Watching

Simply Wall Street, 03 Oct

Pansari Developers Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 21 Sept

Pansari Developers Share Price Target 2027 to 2030: Analyst Outlook

Univest, 18 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Pansari Developers confirms no encumbrance of shares by promoters in FY26

scanx.trade, 19 Jun

Pansari Developers consolidated net profit rises 53.06% in the March 2026 quarter

Business Standard, 30 MayResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

Watch Items

Revenue growth is negative (-35.0%) 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.

DalalBaazaar Thesis

🟢Business QualityStrong17.1/20

🟡Financial HealthAdequate12/20

🟢GrowthStrong14.9/20

🟢ProfitabilityStrong11.4/15

🟢ValuationAttractive10.7/15

🔴RiskHigh4/10

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. 1 high-severity red flag sits above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 40% a year53.4% CAGR
✓EBITDA margin holds above 24%26.1%
✗Debt / EBITDA falls below 3x4.7x
✗Free cash flow remains positive-₹9 Cr
✓ROCE stays above 15%18.5%