Parsvnath Developers Limited

Real Estate — Real Estate - Development · NSE

₹2.53+₹0.04 (+1.61%)

DalalBaazaar Score

16 / 100

🔴 Poor

Verdict

HIGH RISK

Risk

Very High

Driven by negative shareholders' equity — the company owes more than it owns, short-term liabilities exceed short-term assets, negative free cash flow.

In simple words: The company owes more than it owns — years of losses have wiped out its net worth, with modest growth. Solvency — whether it can keep funding itself at all — is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:48 pm

Understanding the Business

Company site ↗

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

What does this company do?

Parsvnath Developers Limited, together with its subsidiaries, engages in the real estate development business in India.

IndustryReal Estate - Development

SectorReal Estate

Annual revenue₹252 Cr

How does it make money?

Turns over ₹252 Cr a year. Of every ₹100 of sales, about ₹-137 reaches shareholders as profit, with ₹15 left at the operating level before interest, tax and depreciation.

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 9.9% 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 -72% while net margin moved +149% 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-72%

Margin effect+149%

DalalBaazaar Score

16/ 100

Poor

Weighted across six categories. Every point is explained below.

✗ Shareholders' equity is negative — accumulated losses exceed the capital in the business

Quality vs. Valuation

Company Quality

15/ 100

Weak

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

Valuation

30/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

Multiples unreliable — equity base is negative

EV/EBITDA

90.1x

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Margins are improving
EBITDA margin is up from -4.5% to 15.0% over 3 years.

🔴 What Needs Attention0

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

Red Flags

6 items require attention · 4 high · 2 watch

🔴Negative shareholders' equityFinancial
Liabilities exceed assets — accumulated losses have wiped out the company's net worth.
🔴Thin interest coverageFinancial
Operating profit covers interest only 0.2x — little room if earnings dip.
🔴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.
🔴The company is lossmakingFinancial
Net profit of -₹345 Cr in the latest reported year.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹56 Cr in the latest year.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.78 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -4.5% to 15.0%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

Solvency comes before everything else
Liabilities exceed assets. Until net worth is rebuilt, the equity is a claim on a business that owes more than it owns, and further losses or a funding squeeze can leave shareholders with nothing.
The debt load needs earnings to hold up
Debt is 88.0x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
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
4 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 13%✓ 15.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 88.0x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
3Free cash flow remains positive✗ -₹56 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✗ 0.2x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

5 / 10 checks passed

✗ Shareholders' equity is positive (assets exceed liabilities)
✗ 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

1 good · 5 neutral · 5 weak

Market Cap

₹110 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹-10.15

Loss-making

Negative earnings per share — the business is losing money

ROE

Not meaningful

Negative equity

Return on equity can't be read when equity itself is negative

ROCE

9.9%

Distorted

Distorted by the negative net worth — read this alongside the solvency flag, not on its own

Debt/Equity

Not meaningful

Negative equity

Shareholders' equity is negative, so this ratio can't be read

Revenue Growth (YoY)

4.8%

Modest

Modest growth

Profit Growth (YoY)

41.8%

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

-₹56 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-33.5%

Weak

Thin margins leave little room for error

Net Margin

-188.1%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.78

Tight

Tight short-term liquidity

Beta (vs Nifty)

-0.10

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

2.2 / 1.8

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

100.0

Overbought zone

Financial Trend (4-Year)

Metric	FY22	FY23	FY24	FY25	3Y CAGR
Revenue	₹897 Cr	₹437 Cr	₹460 Cr	₹252 Cr	-34.5%
EBITDA	-₹40 Cr	-₹73 Cr	-₹47 Cr	₹38 Cr	—
EBITDA Margin	-4.5%	-16.7%	-10.3%	15.0%	—
PAT (Net Profit)	-₹492 Cr	-₹800 Cr	-₹593 Cr	-₹345 Cr	—
EPS	₹-11.31	₹-18.39	₹-13.63	—	—
ROCE	-4.1%	-12.2%	-3.7%	9.9%	—
Total Debt	₹3,537 Cr	₹3,427 Cr	₹3,240 Cr	₹3,325 Cr	-2.0%
Free Cash Flow	₹550 Cr	₹325 Cr	₹200 Cr	-₹56 Cr	—

🔴 Revenue has shrunk at 34.5% a year over 3 years.

🟢 EBITDA has turned positive, from -₹40 Cr to ₹38 Cr.

🟢 EBITDA Margin has risen from -4.5% to 15.0% over 3 years (+19.4 pts).

🟢 ROCE has risen from -4.1% to 9.9% over 3 years (+14.0 pts).

🟢 Total Debt has shrunk at 2.0% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹550 Cr to -₹56 Cr.

Balance Sheet & Cash Flow — FY2025

Total Assets

₹5,400 Cr

Total Liabilities

₹7,323 Cr

Cash & Equivalents

₹31 Cr

Operating Cash Flow

₹38 Cr

Capex

-₹94 Cr

Shareholding (proxy)

Institutional Holding

1.6%

Insider Holding

57.3%

Corporate Actions

Ex-Dividend Date

15 Sept 2008

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 mixed1 negative4 general

Parsvnath Developers Upper Circuit Streak: Day 2 Price and Data

Univest, 12 Oct

Parsvnath Developers Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Parsvnath Developers declares no encumbrance of shares by promoters for FY 2026

scanx.trade, 08 Jul

Parsvnath Developers Share Price Target 2026: Bull Case Rs 5.00,

Univest, 02 JulAnalyst view

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

'Next step is jail': What SC's Parsvnath order means for homebuyers

Business Standard, 22 Jul

Parsvnath Developers CFO Mukesh Chand Jain resigns at 74

scanx.trade, 04 AugManagement

🔴Potentially negativeA senior departure, and an auditor's resignation especially, is worth understanding before anything else in this report.

Watch Items

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.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.
RSI is in overbought territory — momentum entries here carry more short-term pullback risk.

DalalBaazaar Thesis

WeakBusiness Quality · Financial Health · Growth · Profitability · Valuation · Risk

Points for each in the Score ↑

Avoid until solvency is resolved

Parsvnath Developers Limited owes more than it owns. Whatever the operating numbers show, the equity is a residual claim on a business with negative net worth, and that question has to be settled before any of the rest is worth weighing. 4 high-severity red flags sit above this conclusion and should be read first.

3 of 4 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑