Raymond Realty Limited

Real Estate — Real Estate - Development · NSE

₹657.00+₹7.20 (+1.11%)

DalalBaazaar Score

60 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Strong business and financial position, 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, 6:08 pm

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Raymond Realty Limited, through its subsidiaries, engages in the development and sale of housing projects in India. Its projects include residential and commercial properties.

IndustryReal Estate - Development

SectorReal Estate

Employees529

Annual revenue₹2,978 Cr

How does it make money?

Turns over ₹2,978 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹16 left at the operating level before interest, tax and depreciation. Each of its 529 employees supports ₹5.63 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin16.1%

Net margin10.2%

Revenue / employee₹5.63 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.

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?Some evidence

ROCE of 20.4% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE20.4%

ROE19.4%

Peer median ROE10.3%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 23.6% and earnings to grow about 39.9% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+23.6%

Est. earnings growth+39.9%

Analysts1

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 1 years revenue moved +427% while net margin moved +225% 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+427%

Margin effect+225%

DalalBaazaar Score

60/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

61/ 100

Average

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

Valuation

81/ 100

Cheap

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

14.6x

1.3Y Median

189.7x

16 monthly readings · mean 153.2x · range 11.7x–240.9x

Sector Median

30.2x

median of 3 sector peers

🟢Current valuation is approximately 92% below its 1.3y median of 189.7x. 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 52% below the peer median of 30.2x.

vs. its own history

Cheap

189.7x median over 16 months · -92%

vs. sector peers

Cheap

30.2x median of 3 peers · -52%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

14.6x

P/B

2.79x

EV/EBITDA

10.7x

PEG

0.01

Dividend Yield

0.30%

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 11.0% to 16.1% over 1 years.
High return on capital employed
ROCE of 20.4% is the mark of a business that converts capital into profit efficiently.
Valuation below its historical average
At 14.6x the stock trades 92% below its own median of 189.7x.

🔴 What Needs Attention5

Debt is rising
Total debt is up 117% over 1 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 37.4% to 19.4% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 25.7% to 20.4% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 2856% against revenue growth of 427% — customers are taking longer to pay.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 117% over 1 years, from ₹467 Cr to ₹1,014 Cr.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Receivables growing faster than salesFinancial
Receivables up 2856% against revenue up 427% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹990 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 20.4% 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.
Margin expansion has further to run
EBITDA margin has risen from 11.0% to 16.1%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 92% 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.
Cheaper than its peers
It trades 52% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 2856% against revenue up 427%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 37.4% to 19.4%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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
3 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 320% a year✓ 427.1% CAGR
Latest reported year was 40.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 14%✓ 16.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹990 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 17%✓ 20.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 12 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
✓ Analyst consensus isn't majority-sell
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 4 neutral · 2 weak

Market Cap

₹4,372 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

14.6x

Cheap

Cheap against the generic band

P/B Ratio

2.79x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹45.06

Profitable

Profitable on a per-share basis

ROE

19.4%

Strong

Strong capital efficiency

ROCE

20.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.65x

Moderate

Moderate leverage

Revenue Growth (YoY)

40.7%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-18.5%

Falling

Profits are shrinking

Dividend Yield

0.30%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹990 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹657

P/E (Forward)

9.0x

Improving

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

Operating Margin

10.1%

Average

Average margins

Net Margin

9.6%

Average

Average bottom-line conversion

Current Ratio

1.46

Comfortable

Healthy short-term liquidity

52W Range Position

78%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

666.3 / 612.6

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

37.0

Neutral momentum

Financial Trend (2-Year)

Metric	FY25	FY26	1Y CAGR
Revenue	₹565 Cr	₹2,978 Cr	+427.1%
EBITDA	₹62 Cr	₹480 Cr	+670.7%
EBITDA Margin	11.0%	16.1%	—
PAT (Net Profit)	₹18 Cr	₹305 Cr	+1614.1%
EPS	₹2.67	₹45.52	+1604.8%
ROE	37.4%	19.4%	—
ROCE	25.7%	20.4%	—
Total Debt	₹467 Cr	₹1,014 Cr	+117.0%
Free Cash Flow	-₹238 Cr	-₹990 Cr	—

🟢 Revenue has grown at 427.1% a year over 1 years.

🟢 EBITDA has grown at 670.7% a year over 1 years.

🟢 EBITDA Margin has risen from 11.0% to 16.1% over 1 years (+5.1 pts).

🟢 PAT (Net Profit) has grown at 1614.1% a year over 1 years.

🟢 EPS has grown at 1604.8% a year over 1 years.

🔴 ROE has fallen from 37.4% to 19.4% over 1 years (-17.9 pts).

🔴 ROCE has fallen from 25.7% to 20.4% over 1 years (-5.3 pts).

🔴 Total Debt has grown at 117.0% a year over 1 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹7,062 Cr

Total Liabilities

₹5,495 Cr

Total Debt

₹1,014 Cr

Cash & Equivalents

₹246 Cr

Operating Cash Flow

-₹910 Cr

Capex

-₹80 Cr

Shareholding (proxy)

Institutional Holding

2.3%

Insider Holding

55.3%

Corporate Actions

Dividend Rate

₹2

Ex-Dividend Date

03 Jul 2026

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹879

+33.8% vs CMP

Target Range

₹879 – ₹879

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

5 mixed1 general

After a 56% jump in 6 months, Anand Rathi sees 30% further upside in this realty stock - Rationale, target price

Livemint, 14 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Raymond shares jump 10% to hit record high; Raymond Realty gains 7%: What analysts say

Business Today, 05 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.

Raymond Realty (RAYMONDREL) Share/Stock Price Live, NSE

TechGraph, 09 Oct

Raymond Realty shares jump 6% as pre-sales doubled in Q2; check all business updates

Upstox, 05 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.

Raymond Realty gains 6%, snaps 4-day losing run on strong Q2 biz update

Business Standard, 05 OctResults

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

After a 56% Jump in 6 Months, Anand Rathi Sees 30% Further Upside in This Realty Stock: Rationale, Target Price

Univest, 14 OctAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Watch Items

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

DalalBaazaar Thesis

🟡Business QualityAdequate12.6/20

🟡Financial HealthAdequate9.8/20

🟢GrowthStrong14.9/20

🟡ProfitabilityModerate8.4/15

🟢ValuationAttractive11.8/15

🔴RiskHigh2.4/10

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 320% a year427.1% CAGR
✓EBITDA margin holds above 14%16.1%
✗Debt / EBITDA stays below 2x2.1x
✗Free cash flow remains positive-₹990 Cr
✓ROCE stays above 17%20.4%