Keystone Realtors Limited

Real Estate — Real Estate - Development · NSE

₹344.05−₹2.40 (−0.69%)

DalalBaazaar Score

45 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

Driven by 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, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 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 Keystone Realtors Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Keystone Realtors Limited engages in the real estate construction, development, and other related activities in India.

IndustryReal Estate - Development

SectorReal Estate

Employees1,315

Annual revenue₹2,558 Cr

How does it make money?

Turns over ₹2,558 Cr a year. Of every ₹100 of sales, about ₹3 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 1,315 employees supports ₹1.95 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin7.4%

Net margin3.1%

Revenue / employee₹1.95 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 5.3% 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.

ROCE5.3%

ROE2.8%

Peer median ROE10.3%

What is the outlook?

3 analysts covering the stock expect revenue to grow about 22.6% and earnings to grow about 33.9% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+22.6%

Est. earnings growth+33.9%

Analysts3

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 +296% while net margin moved -76% 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+296%

Margin effect-76%

DalalBaazaar Score

45/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROE of 2.8% is weak

Quality vs. Valuation

Company Quality

41/ 100

Weak

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

Valuation

45/ 100

Fair

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

Weak on business quality and not cheap enough to compensate.

Historical Valuation

Current P/E

37.2x

3Y Median

61.0x

40 monthly readings · mean 60.3x · range 27.3x–94.5x

Sector Median

30.2x

median of 3 sector peers

🟢Current valuation is approximately 39% below its 3y median of 61.0x. 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 23% above the peer median of 30.2x.

vs. its own history

Cheap

61.0x median over 40 months · -39%

vs. sector peers

Expensive

30.2x median of 3 peers · +23%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

37.2x

P/B

1.52x

EV/EBITDA

28.2x

PEG

—

Dividend Yield

0.44%

What's Good / What's Bad

🟢 What's Going Well2

Valuation below its historical average
At 37.2x the stock trades 39% below its own median of 61.0x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention4

Margins are compressing
EBITDA margin has slipped from 21.8% to 7.4% over 3 years.
Debt is rising
Total debt is up 44% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Receivables growing faster than sales
Receivables are up 450% against revenue growth of 296% — customers are taking longer to pay.

Red Flags

5 items require attention · 2 high · 3 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 14.4 points, from 21.8% to 7.4%.
🔴Receivables growing faster than salesFinancial
Receivables up 450% against revenue up 296% — sales are being booked faster than they are collected.
🟡Debt is increasingFinancial
Total debt is up 44% over 3 years.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 6.0x to 2.4x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹518 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 39% 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 21.8% to 7.4%. 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 7.8x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
Sales are being booked faster than collected
Receivables are up 450% against revenue up 296%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 23% above the peer median. That premium needs a reason that persists, or it closes.
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 44% a year✓ 58.2% CAGR
Latest reported year was 72.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 5%✓ 7.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 7.8x
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✗ -₹518 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 2.4x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

7 / 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

4 good · 4 neutral · 3 weak

Market Cap

₹4,346 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

37.2x

Fair

Fairly valued against the generic band

P/B Ratio

1.52x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹9.24

Profitable

Profitable on a per-share basis

ROE

2.8%

Weak

Weak capital efficiency

ROCE

5.3%

Weak

Low return on total capital employed

Debt/Equity

0.51x

Low

Conservative leverage

Revenue Growth (YoY)

72.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

266.7%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.44%

Modest

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

Free Cash Flow

-₹518 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹344.05

P/E (Forward)

11.7x

Improving

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

Operating Margin

16.3%

Good

Healthy core-business profitability

Net Margin

4.1%

Average

Average bottom-line conversion

Current Ratio

1.77

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.15

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

360.1 / 365.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

34.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹646 Cr	₹2,163 Cr	₹1,921 Cr	₹2,558 Cr	+58.2%
EBITDA	₹141 Cr	₹183 Cr	₹308 Cr	₹190 Cr	+10.5%
EBITDA Margin	21.8%	8.5%	16.0%	7.4%	—
PAT (Net Profit)	₹82 Cr	₹112 Cr	₹172 Cr	₹79 Cr	-1.3%
EPS	₹7.67	₹9.82	₹13.71	₹6.21	-6.8%
ROE	4.9%	6.2%	6.2%	2.8%	—
ROCE	7.2%	7.0%	9.3%	5.3%	—
Total Debt	₹1,030 Cr	₹1,101 Cr	₹930 Cr	₹1,484 Cr	+12.9%
Free Cash Flow	₹299 Cr	₹179 Cr	-₹31 Cr	-₹518 Cr	—

🟢 Revenue has grown at 58.2% a year over 3 years.

🟢 EBITDA has grown at 10.5% a year over 3 years.

🔴 EBITDA Margin has fallen from 21.8% to 7.4% over 3 years (-14.4 pts).

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

🔴 EPS has shrunk at 6.8% a year over 3 years.

🔴 ROE has fallen from 4.9% to 2.8% over 3 years (-2.2 pts).

🔴 ROCE has fallen from 7.2% to 5.3% over 3 years (-1.9 pts).

🔴 Total Debt has grown at 12.9% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹299 Cr to -₹518 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹6,723 Cr

Total Liabilities

₹3,828 Cr

Total Debt

₹1,484 Cr

Cash & Equivalents

₹468 Cr

Operating Cash Flow

-₹509 Cr

Capex

-₹9 Cr

Shareholding (proxy)

Institutional Holding

15.8%

Insider Holding

75.7%

Corporate Actions

Dividend Rate

₹1.5

Ex-Dividend Date

23 May 2025

Analyst Consensus

Recommendations

3 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹614.67

+78.7% vs CMP

Target Range

₹560 – ₹710

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

2 positive2 mixed2 general

Keystone Realtors (NSEI:RUSTOMJEE) - Stock Analysis

Simply Wall Street, 13 Oct

Keystone Realtors Q2FY27 Results: Earnings call scheduled Nov 4

scanx.trade, 14 OctResults

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

Keystone Realtors Share Price Gains Over 3% After Q2 Pre-Sales Jump 84% YoY

NDTV Profit, 08 OctResults

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

Keystone Realtors Stock Signals to Watch This Week

Univest, 24 Sept

Keystone Realtors Q1 Sales Bookings Down 42pc to Rs 617cr

HDFC Sky, 13 JulResults

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

Keystone Realtors' Q1 profit jumps over threefold on higher revenue

Business Standard, 04 AugResults

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

Watch Items

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 QualityWeak7.5/20

🟡Financial HealthAdequate9.7/20

🟡GrowthModest9.3/20

🔴ProfitabilityWeak4.5/15

🟡ValuationFair9.5/15

🔴RiskHigh4.4/10

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓Revenue growth stays above 44% a year58.2% CAGR
✓EBITDA margin holds above 5%7.4%
✗Debt / EBITDA falls below 3x7.8x
✗Free cash flow remains positive-₹518 Cr
✗Interest cover stays above 3x2.4x