Radhe Developers (India) Limited

Real Estate — Real Estate - Development · BSE

₹1.31+₹0.01 (+0.77%)

DalalBaazaar Score

47 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by short-term liabilities exceed short-term assets, negative free cash flow, the company is currently loss-making.

In simple words: The company is currently losing money, 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, 7:01 pm

Understanding the Business

Company site ↗

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

What does this company do?

Radhe Developers (India) Limited engages in the real estate development business in India. The company also develops residential, commercial, plotting, weekend homes, and social infrastructure projects.

IndustryReal Estate - Development

SectorReal Estate

Employees17

Annual revenue₹12 Cr

How does it make money?

Turns over ₹12 Cr a year. Of every ₹100 of sales, about ₹28 reaches shareholders as profit, with ₹43 left at the operating level before interest, tax and depreciation. Each of its 17 employees supports ₹69.2 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹69.2 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 5.4% 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 -18% while net margin moved +456% 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-18%

Margin effect+456%

DalalBaazaar Score

47/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 4.6% is weak
✓ ROE has improved by 3.3 points over the period

Quality vs. Valuation

Company Quality

48/ 100

Average

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.

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

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

19.9x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 23.9% to 43.4% over 3 years.
Return on equity is rising
ROE has improved from 1.3% to 4.6%.
Return on capital is rising
ROCE has improved from 3.4% to 5.4%.

🔴 What Needs Attention0

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

Red Flags

4 items require attention · 1 high · 3 watch

🔴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.
🟡Debt is increasingFinancial
Total debt is up 32% over 3 years.
🟡Inventory building faster than salesFinancial
Inventory up 23% against revenue up -18% — stock may not be moving.
🟡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?

Margin expansion has further to run
EBITDA margin has risen from 23.9% to 43.4%. 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?

The debt load needs earnings to hold up
Debt is 5.9x 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

1EBITDA margin holds above 41%✓ 43.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 5.9x
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✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ 5.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Interest cover stays above 4x✓ 5.4x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

4 / 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 · 2 neutral · 6 weak

Market Cap

₹72 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

1.11x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-0.03

Loss-making

Negative earnings per share — the business is losing money

ROE

4.6%

Weak

Weak capital efficiency

ROCE

5.4%

Weak

Low return on total capital employed

Debt/Equity

0.43x

Low

Conservative leverage

Revenue Growth (YoY)

-99.7%

Shrinking

Sales are contracting

Profit Growth (YoY)

141.0%

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

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

-5749.1%

Weak

Thin margins leave little room for error

Net Margin

-35.9%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.99

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.41

Defensive

Steadier than the market

52W Range Position

14%

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

1.3 / 1.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

27.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹14 Cr	₹7 Cr	₹8 Cr	₹12 Cr	-6.4%
EBITDA	₹3 Cr	-₹3 Cr	₹3 Cr	₹5 Cr	+14.3%
EBITDA Margin	23.9%	-43.2%	41.5%	43.4%	—
PAT (Net Profit)	₹1 Cr	-₹5 Cr	₹1 Cr	₹3 Cr	+65.8%
EPS	₹0.01	₹-0.09	₹0.03	₹0.06	+81.7%
ROE	1.3%	-9.2%	2.2%	4.6%	—
ROCE	3.4%	-6.8%	3.6%	5.4%	—
Total Debt	₹23 Cr	₹42 Cr	₹35 Cr	₹30 Cr	+9.7%
Free Cash Flow	-₹12 Cr	-₹19 Cr	-₹1 Cr	-₹1 Cr	—

🔴 Revenue has shrunk at 6.4% a year over 3 years.

🟢 EBITDA has grown at 14.3% a year over 3 years.

🟢 EBITDA Margin has risen from 23.9% to 43.4% over 3 years (+19.6 pts).

🟢 PAT (Net Profit) has grown at 65.8% a year over 3 years.

🟢 EPS has grown at 81.7% a year over 3 years.

🟢 ROE has risen from 1.3% to 4.6% over 3 years (+3.3 pts).

🟢 ROCE has risen from 3.4% to 5.4% over 3 years (+2.0 pts).

🔴 Total Debt has grown at 9.7% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹141 Cr

Total Liabilities

₹71 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹3 Cr

Capex

-₹4 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

60.4%

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 positive3 mixed2 general

Radhe Developers confirms all AGM resolutions passed for FY26

scanx.trade, 19 Sept

Rathi Steel & Power: मुनाफे की नई रफ्तार, Q2 में रेवेन्यू **₹200 करोड़** के पार

Whalesbook, 07 OctResults

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

Radhe Developers Share Price Falls 2.50% After Q1 FY27 Results: Key Details for Investors

Univest, 20 JulPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Rathi Steel & Power: जबरदस्त कामगिरी! महसूल **₹200 कोटींच्या** पार, शेअरवर गुंतवणूकदारांचे लक्ष

Whalesbook, 07 Oct

Radhe Developers net profit surges 141% in FY26; AGM set for Sep 19

scanx.trade, 20 AugResults

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

Q1 results: RIL, JSW Steel, Tata Technologies, among 30 more on July 17

Business Standard, 17 JulResults

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

Watch Items

Revenue growth is negative (-99.7%) 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

MiddlingBusiness Quality · Financial Health · Growth · Valuation

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

3 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑