Puravankara Limited

Real Estate — Real Estate - Development · NSE

₹203.87−₹0.03 (−0.01%)

DalalBaazaar Score

49 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, short-term liabilities exceed short-term assets, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

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

What does this company do?

Puravankara Limited, together with its subsidiaries, is engaged in the business of real estate development. The company also designs, develops, constructs, and markets residential and commercial properties in India.

IndustryReal Estate - Development

SectorReal Estate

Employees1,138

Annual revenue₹3,639 Cr

How does it make money?

Turns over ₹3,639 Cr a year. Of every ₹100 of sales, about ₹2 reaches shareholders as profit, with ₹22 left at the operating level before interest, tax and depreciation. Each of its 1,138 employees supports ₹3.20 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹3.20 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.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 35.3%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 3.6% against a peer median of 10.3% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

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 +207% while net margin moved -69% 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+207%

Margin effect-69%

DalalBaazaar Score

49/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 3.6% is weak

Quality vs. Valuation

Company Quality

48/ 100

Average

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

Valuation

67/ 100

Fair

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

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

30.2x

3Y Median

135.2x

40 monthly readings · mean 130.2x · range 38.6x–259.9x

Sector Median

30.2x

median of 3 sector peers

🟢Current valuation is approximately 78% below its 3y median of 135.2x. 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 is priced broadly in line with the peer median of 30.2x.

vs. its own history

Cheap

135.2x median over 40 months · -78%

vs. sector peers

Fair

30.2x median of 3 peers · +0%

vs. generic bands

Fair

15x–35x

EV/EBITDA

11.6x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Cash generation is improving
Free cash flow is up 149% over 3 years.
Return on capital is rising
ROCE has improved from 16.6% to 35.3%.
High return on capital employed
ROCE of 35.3% is the mark of a business that converts capital into profit efficiently.

🔴 What Needs Attention0

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

Red Flags

5 items require attention · 4 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 90% over 3 years, from ₹2,944 Cr to ₹5,595 Cr.
🔴High leverageFinancial
Debt/Equity of 3.15x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.1x — little room if earnings dip.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 9.4 points, from 31.1% to 21.7%.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.99 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 35.3% 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.
Priced below its own history
The stock trades 78% 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.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 31.1% to 21.7%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The debt load needs earnings to hold up
Debt is 7.1x 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.
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

1Revenue growth stays above 34% a year✓ 45.3% CAGR
Latest reported year was 61.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 20%✓ 21.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 7.1x
Already stretched, so this is a reduction target rather than a level to hold. Around 3x is where lenders typically start attaching conditions.
4Interest cover stays above 3x✗ 1.1x
How much operating profit can fall before interest stops being comfortably covered.
5Free cash flow remains positive✓ ₹281 Cr
Profit that never becomes cash eventually stops being profit.

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 · 4 neutral · 2 weak

Market Cap

₹4,835 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

30.2x

Fair

Fairly valued against the generic band

P/B Ratio

2.71x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹6.75

Profitable

Profitable on a per-share basis

ROE

3.6%

Weak

Weak capital efficiency

ROCE

35.3%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

3.15x

High

High leverage

Revenue Growth (YoY)

61.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

135.4%

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

₹281 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

14.7x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

20.8%

Good

Healthy core-business profitability

Net Margin

3.9%

Average

Average bottom-line conversion

Current Ratio

0.99

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.45

Defensive

Steadier than the market

52W Range Position

34%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

209.5 / 213.3

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

37.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,187 Cr	₹2,141 Cr	₹1,923 Cr	₹3,639 Cr	+45.3%
EBITDA	₹370 Cr	₹531 Cr	₹368 Cr	₹790 Cr	+28.8%
EBITDA Margin	31.1%	24.8%	19.1%	21.7%	—
PAT (Net Profit)	₹66 Cr	₹42 Cr	-₹180 Cr	₹64 Cr	-1.4%
EPS	₹2.8	₹1.77	₹-7.59	₹2.69	-1.3%
ROE	3.3%	2.2%	-10.4%	3.6%	—
ROCE	16.6%	19.8%	17.8%	35.3%	—
Total Debt	₹2,944 Cr	₹3,325 Cr	₹4,332 Cr	₹5,595 Cr	+23.9%
Free Cash Flow	₹113 Cr	₹841 Cr	-₹574 Cr	₹281 Cr	+35.5%

🟢 Revenue has grown at 45.3% a year over 3 years.

🟢 EBITDA has grown at 28.8% a year over 3 years.

🔴 EBITDA Margin has fallen from 31.1% to 21.7% over 3 years (-9.4 pts).

🟡 PAT (Net Profit) has been broadly flat over 3 years (-1.4% a year).

🟡 EPS has been broadly flat over 3 years (-1.3% a year).

🟡 ROE has held roughly flat at 3.6% over 3 years.

🟢 ROCE has risen from 16.6% to 35.3% over 3 years (+18.7 pts).

🔴 Total Debt has grown at 23.9% a year over 3 years.

🟢 Free Cash Flow has grown at 35.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹17,258 Cr

Total Liabilities

₹15,482 Cr

Cash & Equivalents

₹1,283 Cr

Operating Cash Flow

₹345 Cr

Capex

-₹63 Cr

Shareholding (proxy)

Institutional Holding

9.7%

Insider Holding

79.4%

Corporate Actions

Ex-Dividend Date

01 Feb 2024

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 positive4 mixed1 general

Puravankara (NSEI:PURVA) - Stock Analysis

Simply Wall Street, 16 Oct

Puravankara Signs ₹2,500 Crore Bengaluru JDA; Shares Rise 1.56%

HDFC Sky, 12 OctPrice 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.

Puravankara shares jump 2% on signing JDA for 12.76-acre Land Bengaluru, with potential GDV of ₹2,500 crore

Upstox, 12 OctPrice 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.

Puravankara shares rise 3% as Q2 pre-sales jump 62%

Business Today, 13 OctResults

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

Puravankara Q2 sales bookings surge 62% to Rs 2,136 crore on housing demand

The Economic Times, 13 OctResults

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

Puravankara Shares Jump 16% on Strong Q1 Update

Equitypandit, 13 JulPrice 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.

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality

MiddlingGrowth · Valuation

WeakFinancial Health · Profitability · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 4 high-severity red flags sit above this conclusion and should be read first.

2 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Interest cover stays above 3x · see Key things to watch ↑