Ratnabhumi Developers Limited

Real Estate — Real Estate - Development · BSE

₹170.00₹0.00 (0.00%)

DalalBaazaar Score

51 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, negative free cash flow, micro-cap size, which brings thin liquidity.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:10 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

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

What does this company do?

Ratnabhumi Developers Limited engages in the construction and development of real estate properties in India. The company develops residential and commercial projects under the Turquoise brand.

IndustryReal Estate - Development

SectorReal Estate

Annual revenue₹59 Cr

How does it make money?

Turns over ₹59 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹28 left at the operating level before interest, tax and depreciation.

EBITDA margin28.4%

Net margin5.3%

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.

DLF LIMITEDP/E 36.6x · ROE 10.3%

GODREJ PROPERTIES LTDP/E 30.2x · ROE 8.4%

OBEROI REALTY LIMITEDP/E 23.5x · ROE 14.7%

What is its competitive advantage?Little sign of one

Returns on capital of 10.6% 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.

ROCE10.6%

ROE7.1%

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 +29752% while net margin moved -95% 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+29752%

Margin effect-95%

DalalBaazaar Score

51/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Debt/Equity of 2.73x is high — earnings must service borrowings before shareholders see anything
✓ Current ratio of 4.26 — short-term bills are well covered
✗ Free cash flow is negative — growth is being funded by borrowing or fresh equity
✗ Interest cover of only 1.3x — little room if profits dip

Quality vs. Valuation

Company Quality

53/ 100

Average

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

Valuation

49/ 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

191.0x

3Y Median

597.1x

40 monthly readings · mean 474.0x · range 40.7x–1282.1x

Sector Median

30.2x

median of 3 sector peers

🟢Current valuation is approximately 68% below its 3y median of 597.1x. 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 trades 533% above the peer median of 30.2x.

vs. its own history

Cheap

597.1x median over 40 months · -68%

vs. sector peers

Expensive

30.2x median of 3 peers · +533%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

191.0x

P/B

5.21x

EV/EBITDA

20.7x

PEG

1.39

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well4

Return on equity is rising
ROE has improved from 0.7% to 7.1%.
Return on capital is rising
ROCE has improved from 4.7% to 10.6%.
Valuation below its historical average
At 191.0x the stock trades 68% below its own median of 597.1x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Margins are compressing
EBITDA margin has slipped from 3496.1% to 28.4% over 3 years.
Free cash flow is negative
The business is not currently covering its capital spending from operations.

Red Flags

4 items require attention · 3 high · 1 watch

🔴High leverageFinancial
Debt/Equity of 2.73x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only 1.3x — little room if earnings dip.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 3467.7 points, from 3496.1% to 28.4%.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹1 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 68% 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.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 3496.1% to 28.4%. 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.
A premium to the sector to defend
It trades 533% above the peer median. That premium needs a reason that persists, or it closes.
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

1Revenue growth stays above 426% a year✓ 568.3% CAGR
Latest reported year was -52.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 26%✓ 28.4%
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.
4Free cash flow remains positive✗ -₹1 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 1.3x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

2 / 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

1 good · 3 neutral · 7 weak

Market Cap

₹233 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

191.0x

Expensive

Expensive — verify against sector peers

P/B Ratio

5.21x

Rich

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

EPS (TTM)

₹0.89

Profitable

Profitable on a per-share basis

ROE

7.1%

Weak

Weak capital efficiency

ROCE

10.6%

Moderate

Moderate return on the capital in the business

Debt/Equity

2.73x

High

High leverage

Revenue Growth (YoY)

-52.3%

Shrinking

Sales are contracting

Profit Growth (YoY)

-96.6%

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

-₹1 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹170

Operating Margin

54.8%

Good

Healthy core-business profitability

Net Margin

2.6%

Weak

Very little revenue reaches the bottom line

Current Ratio

4.26

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.13

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

173.5 / 173.8

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

39.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹0 Cr	₹0 Cr	₹212 Cr	₹59 Cr	+568.3%
EBITDA	₹7 Cr	₹16 Cr	₹21 Cr	₹17 Cr	+34.4%
EBITDA Margin	3496.1%	7141.4%	10.0%	28.4%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹6 Cr	₹3 Cr	+137.8%
EPS	₹0.17	₹0.19	₹4.18	₹2.29	+137.9%
ROE	0.7%	0.8%	14.0%	7.1%	—
ROCE	4.7%	6.7%	12.7%	10.6%	—
Total Debt	₹109 Cr	₹194 Cr	₹120 Cr	₹120 Cr	+3.4%
Free Cash Flow	-₹62 Cr	-₹51 Cr	₹90 Cr	-₹1 Cr	—

🟢 Revenue has grown at 568.3% a year over 3 years.

🟢 EBITDA has grown at 34.4% a year over 3 years.

🔴 EBITDA Margin has fallen from 3496.1% to 28.4% over 3 years (-3467.7 pts).

🟢 PAT (Net Profit) has grown at 137.8% a year over 3 years.

🟢 EPS has grown at 137.9% a year over 3 years.

🟢 ROE has risen from 0.7% to 7.1% over 3 years (+6.5 pts).

🟢 ROCE has risen from 4.7% to 10.6% over 3 years (+5.8 pts).

🔴 Total Debt has grown at 3.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹194 Cr

Total Liabilities

₹150 Cr

Total Debt

₹120 Cr

Cash & Equivalents

₹4 Cr

Operating Cash Flow

₹12 Cr

Capex

-₹13 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

94.5%

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 positive5 general

Ratnabhumi Developers Ltd. Lower Circuit Today: Price, Data and Peers

Univest, 29 Sept

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

Value Research, 01 Sept

Ratnabhumi Developers Ltd. Key Financial Ratios – Valuation, Profitability & More

Value Research, 01 Sept

Vadilal Enterprises standalone net profit rises 15.92% in the June 2026 quarter

Business Standard, 14 AugResults

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

Ratnabhumi Developers Ltd. Peer Comparison – Compare with Others

Value Research, 31 Aug

Hampton Sky Realty Share Price Near 52-Week Low

Univest, 17 Aug

Watch Items

Revenue growth is negative (-52.3%) on the latest reported period — check if this is one-off or a trend.
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.

DalalBaazaar Thesis

🟢Business QualityStrong13/20

🔴Financial HealthStretched7.1/20

🟡GrowthModest12.9/20

🟡ProfitabilityModerate7.1/15

🔴ValuationDemanding6.7/15

🔴RiskHigh3.7/10

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. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 426% a year568.3% CAGR
✓EBITDA margin holds above 26%28.4%
✗Debt / EBITDA falls below 3x7.1x
✗Free cash flow remains positive-₹1 Cr
✗Interest cover stays above 3x1.3x