Real Eco-Energy Limited

Real Estate — Real Estate Services · BSE

₹4.38+₹0.22 (+5.29%)

DalalBaazaar Score

55 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity, falling profits.

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, 6:08 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 Real Eco-Energy Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Real Eco-Energy Limited engages in trading business in India. It operates through Real Estate, Media, Bio Diesel Mineral, and Trading segment. The company trades in TMT boards.

IndustryReal Estate Services

SectorReal Estate

Employees1

Annual revenue₹2 Cr

How does it make money?

Turns over ₹2 Cr a year. Of every ₹100 of sales, about ₹16 reaches shareholders as profit, with ₹16 left at the operating level before interest, tax and depreciation. Each of its 1 employees supports ₹2.49 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin16.3%

Net margin16.0%

Revenue / employee₹2.49 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?Little sign of one

Returns on capital of 1.6% 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.

ROCE1.6%

ROE5.9%

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 -63% while net margin moved +6719% 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-63%

Margin effect+6719%

DalalBaazaar Score

55/ 100

Moderate

Weighted across six categories. Every point is explained below.

✓ Beta of 0.64 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

58/ 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

39.8x

3Y Median

106.9x

40 monthly readings · mean 4735.0x · range 58.0x–17265.0x

Sector Median

30.2x

median of 3 sector peers

🟢Current valuation is approximately 63% below its 3y median of 106.9x. 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 32% above the peer median of 30.2x.

vs. its own history

Cheap

106.9x median over 40 months · -63%

vs. sector peers

Expensive

30.2x median of 3 peers · +32%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

39.8x

P/B

6.41x

EV/EBITDA

151.1x

PEG

0.21

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 0.3% to 16.3% over 3 years.
Cash generation is improving
Free cash flow is up 7432% over 3 years.
Return on equity is rising
ROE has improved from 0.3% to 5.9%.
Valuation below its historical average
At 39.8x the stock trades 63% below its own median of 106.9x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Debt is rising
Total debt is up 281% over 3 years — worth checking what it funded.

Red Flags

2 items require attention · 2 high

🔴Debt has risen sharplyFinancial
Total debt is up 281% over 3 years, from ₹5 Cr to ₹18 Cr.
🔴High leverageFinancial
Debt/Equity of 2.73x — earnings must service borrowings before shareholders see anything.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 0.3% to 16.3%. 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 63% 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?

The debt load needs earnings to hold up
Debt is 45.4x 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 32% 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.
Several serious flags at once
2 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

1EBITDA margin holds above 14%✓ 16.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 45.4x
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✓ ₹3 Cr
Profit that never becomes cash eventually stops being profit.
4ROCE stays above 8%✗ 1.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
5Valuation vs its own median of 106.9x✓ 39.8x today
A re-rating above its own history needs a reason; without one it is just a higher price.

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 · 3 neutral · 6 weak

Market Cap

₹44 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

39.8x

Fair

Fairly valued against the generic band

P/B Ratio

6.41x

Rich

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

EPS (TTM)

₹0.11

Profitable

Profitable on a per-share basis

ROE

5.9%

Weak

Weak capital efficiency

ROCE

1.6%

Weak

Low return on total capital employed

Debt/Equity

2.73x

High

High leverage

Revenue Growth (YoY)

-25.5%

Shrinking

Sales are contracting

Profit Growth (YoY)

-44.4%

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

₹3 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹4.38

Operating Margin

-13.9%

Weak

Thin margins leave little room for error

Net Margin

36.3%

Good

Strong bottom-line conversion

Current Ratio

8.70

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.64

Defensive

Steadier than the market

52W Range Position

29%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

4.4 / 4.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

45.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹7 Cr	₹0 Cr	₹3 Cr	₹2 Cr	-28.3%
EBITDA	₹0 Cr	₹0 Cr	₹1 Cr	₹0 Cr	+159.5%
EBITDA Margin	0.3%	64.0%	21.7%	16.3%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹1 Cr	₹0 Cr	+192.8%
EPS	₹0	₹0.09	₹0.07	₹0.04	+171.4%
ROE	0.3%	3.2%	11.3%	5.9%	—
ROCE	0.2%	1.8%	6.4%	1.6%	—
Total Debt	₹5 Cr	₹5 Cr	₹5 Cr	₹18 Cr	+56.2%
Free Cash Flow	₹0 Cr	-₹0 Cr	₹1 Cr	₹3 Cr	+322.3%

🔴 Revenue has shrunk at 28.3% a year over 3 years.

🟢 EBITDA has grown at 159.5% a year over 3 years.

🟢 EBITDA Margin has risen from 0.3% to 16.3% over 3 years (+16.0 pts).

🟢 PAT (Net Profit) has grown at 192.8% a year over 3 years.

🟢 EPS has grown at 171.4% a year over 3 years.

🟢 ROE has risen from 0.3% to 5.9% over 3 years (+5.6 pts).

🟢 ROCE has risen from 0.2% to 1.6% over 3 years (+1.4 pts).

🔴 Total Debt has grown at 56.2% a year over 3 years.

🟢 Free Cash Flow has grown at 322.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹26 Cr

Total Liabilities

₹20 Cr

Total Debt

₹18 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

₹3 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

73.1%

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 negative5 general

Real Eco-Energy Ltd. Peer Comparison – Compare with Others

Value Research, 08 Oct

Real Eco-Energy shareholders pass all AGM resolutions for FY26

scanx.trade, 01 Oct

Real Eco-Energy Q1FY26 loss widens to ₹7.16 lakh as trading revenue falls

scanx.trade, 12 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

5 Best Renewable Energy Stocks for 2026 and How to Invest

The Motley Fool, 13 Aug

Waaree Energies, Adani Green Energy, NTPC Green, Suzlon Energy: How renewable energy stocks are performing on August 10

Upstox, 09 Aug

Blow for investors as green energy trust begins wind-down

The Times, 16 Jun

Watch Items

Revenue growth is negative (-25.5%) 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.

DalalBaazaar Thesis

🟡Business QualityAdequate11.7/20

🟡Financial HealthAdequate11.2/20

🟡GrowthModest10.5/20

🟢ProfitabilityStrong10/15

🟡ValuationFair7.9/15

🔴RiskHigh3.9/10

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

This thesis breaks if

✓EBITDA margin holds above 14%16.3%
✗Debt / EBITDA falls below 3x45.4x
✓Free cash flow remains positive₹3 Cr
✗ROCE stays above 8%1.6%
✓Valuation vs its own median of 106.9x39.8x today