Prajay Engineers Syndicate Limited

Real Estate — Real Estate - Development · NSE

₹18.99₹0.00 (0.00%)

DalalBaazaar Score

44 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by the company is currently loss-making, micro-cap size, which brings thin liquidity.

In simple words: The company is currently losing money, 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, 6:58 pm

Understanding the Business

Company site ↗

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

What does this company do?

Prajay Engineers Syndicate Limited, together with its subsidiaries, engages in the development and construction of real estate in India. It operates through Real estate, and Hotels and resorts segments.

IndustryReal Estate - Development

SectorReal Estate

Annual revenue₹38 Cr

How does it make money?

Turns over ₹38 Cr a year. Of every ₹100 of sales, about ₹-48 reaches shareholders as profit, with ₹-12 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 -2.8% 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?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +29% while net margin moved +58% 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+29%

Margin effect+58%

DalalBaazaar Score

44/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative

Quality vs. Valuation

Company Quality

43/ 100

Weak

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

Valuation

36/ 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

No P/E — the company is lossmaking

EV/EBITDA

—

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Margins are improving
EBITDA margin is up from -21.5% to -11.5% over 3 years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from -0.7% to -2.8% — often a sign of competition or overexpansion.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only -108.5x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹19 Cr in the latest reported year.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from -140.5x to -108.5x.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -21.5% to -11.5%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹7 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

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 -14%✓ -11.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✗ -108.5x
How much operating profit can fall before interest stops being comfortably covered.
3Revenue growth stays above 7% a year✓ 8.8% CAGR
Latest reported year was -67.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Free cash flow remains positive✓ ₹7 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ -2.8%
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

4 good · 2 neutral · 5 weak

Market Cap

₹133 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

0.27x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-2.61

Loss-making

Negative earnings per share — the business is losing money

ROE

-3.9%

Weak

Weak capital efficiency

ROCE

-2.8%

Weak

Low return on total capital employed

Debt/Equity

0.34x

Low

Conservative leverage

Revenue Growth (YoY)

-67.0%

Shrinking

Sales are contracting

Profit Growth (YoY)

32.7%

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

₹7 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

-45.5%

Weak

Thin margins leave little room for error

Net Margin

-63.5%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.57

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.27

Defensive

Steadier than the market

52W Range Position

12%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

20.5 / 20.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

27.8

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹30 Cr	₹57 Cr	₹57 Cr	₹38 Cr	+8.8%
EBITDA	-₹6 Cr	-₹23 Cr	-₹15 Cr	-₹4 Cr	—
EBITDA Margin	-21.5%	-39.9%	-25.4%	-11.5%	—
PAT (Net Profit)	-₹9 Cr	-₹39 Cr	-₹28 Cr	-₹19 Cr	—
EPS	₹-1.31	₹-5.57	₹-4.29	₹-2.69	—
ROE	-1.6%	-7.5%	-5.7%	-3.9%	—
ROCE	-0.7%	-5.4%	-4.4%	-2.8%	—
Total Debt	₹173 Cr	₹183 Cr	₹174 Cr	₹164 Cr	-1.7%
Free Cash Flow	₹6 Cr	₹20 Cr	₹13 Cr	₹7 Cr	+4.3%

🟢 Revenue has grown at 8.8% a year over 3 years.

🟢 EBITDA Margin has risen from -21.5% to -11.5% over 3 years (+10.0 pts).

🔴 ROE has fallen from -1.6% to -3.9% over 3 years (-2.3 pts).

🔴 ROCE has fallen from -0.7% to -2.8% over 3 years (-2.0 pts).

🟡 Total Debt has been broadly flat over 3 years (-1.7% a year).

🟢 Free Cash Flow has grown at 4.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹804 Cr

Total Liabilities

₹329 Cr

Cash & Equivalents

₹40 Cr

Operating Cash Flow

₹24 Cr

Capex

-₹17 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

53.6%

Corporate Actions

Ex-Dividend Date

18 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 mixed5 general

Prajay Engineers Syndicate Share Price and Fundamental View

Univest, 09 Oct

Prajay Engineers Syndicate Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Prajay Engineers appoints RB Associates and GP Reddy as auditors

scanx.trade, 29 Sept

Volume Gainers | July 23, 2026, 4:00 PM IST

HDFC Sky, 23 Jul

Prajay Engineers Syndicate Share Price Rise and Valuation

Univest, 25 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Prajay Engineers Syndicate Ltd. Share Price Live Today

CNBC TV18, 09 Sept

Watch Items

Revenue growth is negative (-67.0%) 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.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingGrowth · Valuation

WeakBusiness Quality · Profitability · Risk

Points for each in the Score ↑

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 2 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑