Purohit Construction Limited

Real Estate — Real Estate - Development · BSE

₹12.40+₹0.50 (+4.20%)

DalalBaazaar Score

36 / 100

🔴 Weak

Verdict

CAUTION

Risk

High

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

In simple words: The company is currently losing money, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:02 pm

Understanding the Business

Company site ↗

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

What does this company do?

Purohit Construction Limited provides construction services for civil and infrastructure developments in India. It engages in real estate related activities. The company was incorporated in 1991 and is based in Ahmedabad, India.

IndustryReal Estate - Development

SectorReal Estate

Employees4

Annual revenue₹0 Cr

How does it make money?

Turns over ₹0 Cr a year. Of every ₹100 of sales, about ₹-181 reaches shareholders as profit, with ₹-35 left at the operating level before interest, tax and depreciation. Each of its 4 employees supports ₹4.8 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹4.8 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 -13.8% 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 -83% while net margin moved +166% 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-83%

Margin effect+166%

DalalBaazaar Score

36/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 44.6% a year
✗ Profit fell 36.5% in the latest year

Quality vs. Valuation

Company Quality

39/ 100

Weak

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

Valuation

21/ 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 Well4

Margins are improving
EBITDA margin is up from -43.0% to -34.9% over 3 years.
Return on equity is rising
ROE has improved from -30.7% to -24.4%.
Return on capital is rising
ROCE has improved from -30.2% to -13.8%.
Very low debt
Debt/Equity of 0.10x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention0

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

Red Flags

1 item require attention · 1 high

🔴The company is lossmakingFinancial
Net profit of -₹0 Cr in the latest reported year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -43.0% to -34.9%. 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 ₹0 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?

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

1EBITDA margin holds above -37%✓ -34.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✓ ₹0 Cr
Profit that never becomes cash eventually stops being profit.
3ROCE stays above 8%✗ -13.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 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

2 good · 2 neutral · 7 weak

Market Cap

₹5 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

8.78x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹-2.34

Loss-making

Negative earnings per share — the business is losing money

ROE

-91.0%

Weak

Weak capital efficiency

ROCE

-13.8%

Weak

Low return on total capital employed

Debt/Equity

0.10x

Low

Conservative leverage

Revenue Growth (YoY)

58.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-36.5%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹0 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

ROA

-35.3%

Weak

Assets generate little profit

Operating Margin

-540.7%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

7.65

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.64

Defensive

Steadier than the market

52W Range Position

39%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

11.7 / 12.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

64.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1 Cr	—	₹0 Cr	₹0 Cr	-44.6%
EBITDA	-₹0 Cr	-₹0 Cr	-₹0 Cr	-₹0 Cr	—
EBITDA Margin	-43.0%	—	-202.5%	-34.9%	—
PAT (Net Profit)	-₹1 Cr	-₹0 Cr	-₹0 Cr	-₹0 Cr	—
EPS	₹-1.72	₹-1.05	₹-0.57	₹-0.78	—
ROE	-30.7%	-23.1%	-14.4%	-24.4%	—
ROCE	-30.2%	-21.3%	-14.2%	-13.8%	—
Total Debt	—	₹0 Cr	₹0 Cr	—	—
Free Cash Flow	₹0 Cr	-₹0 Cr	-₹0 Cr	₹0 Cr	-10.5%

🔴 Revenue has shrunk at 44.6% a year over 3 years.

🟢 EBITDA Margin has risen from -43.0% to -34.9% over 3 years (+8.1 pts).

🟢 ROE has risen from -30.7% to -24.4% over 3 years (+6.3 pts).

🟢 ROCE has risen from -30.2% to -13.8% over 3 years (+16.4 pts).

🔴 Free Cash Flow has shrunk at 10.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2 Cr

Total Liabilities

₹0 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹0 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

60.6%

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

Purohit Construction passes all 7 resolutions at 35th AGM with unanimous vote

scanx.trade, 07 Sept

Purohit Construction Secures 51% Controlling Stake in New PEB PCL Infracon JV

Sahi, 23 JunPartnership

🟡Mixed / dependsA partnership, whose value depends entirely on terms that a headline will not carry. Worth reading the filing before assuming either way.

Sensex, Nifty trade with small gains; Oil & gas shares rally

Business Standard, 20 MayPrice 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.

Madhusudan Industries sells office premises for ₹2.25 crore

scanx.trade, 17 Sept

Multiplus Holdings appoints two independent directors ahead of AGM

scanx.trade, 08 Sept

KARDA CONSTRUCTIONS Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 10 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health

WeakBusiness Quality · Growth · Profitability · Valuation · 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. 1 high-severity red flag sits above this conclusion and should be read first.

1 of 3 tripwires tripped — ROCE stays above 8% · see Key things to watch ↑