Suratwwala Business Group Limited

Real Estate — Real Estate - Development · NSE

₹22.05+₹0.04 (+0.18%)

DalalBaazaar Score

69 / 100

🟢 Good

Verdict

REASONABLE

Risk

Moderate

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

In simple words: Strong business and financial position, 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, 7:46 pm

Understanding the Business

Company site ↗

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

What does this company do?

Suratwwala Business Group Limited engages in the construction of residential, commercial, and IT parks properties in India. The company provides maintenance and management of services for its developed properties.

IndustryReal Estate - Development

SectorReal Estate

Employees61

Annual revenue₹143 Cr

How does it make money?

Turns over ₹143 Cr a year. Of every ₹100 of sales, about ₹26 reaches shareholders as profit, with ₹37 left at the operating level before interest, tax and depreciation. Each of its 61 employees supports ₹2.34 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹2.34 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.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 27.8% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

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 +130% while net margin moved -23% 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+130%

Margin effect-23%

DalalBaazaar Score

69/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.35 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

70/ 100

Good

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 good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

9.3x

3Y Median

46.1x

40 monthly readings · mean 48.7x · range 10.3x–102.8x

Sector Median

30.2x

median of 3 sector peers

🟢Current valuation is approximately 80% below its 3y median of 46.1x. 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 69% below the peer median of 30.2x.

vs. its own history

Cheap

46.1x median over 40 months · -80%

vs. sector peers

Cheap

30.2x median of 3 peers · -69%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

8.7x

PEG

0.45

What's Good / What's Bad

🟢 What's Going Well2

High return on capital employed
ROCE of 27.8% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 190.3% to 35.7% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 162.6% to 27.8% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 5 high

🔴Debt has risen sharplyFinancial
Total debt is up 163% over 3 years, from ₹32 Cr to ₹83 Cr.
🔴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.
🔴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.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 11.2 points, from 48.3% to 37.1%.
🔴Receivables growing faster than salesFinancial
Receivables up 5330% against revenue up 130% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 27.8% 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.
Priced below its own history
The stock trades 80% 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 69% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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 48.3% to 37.1%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 5330% against revenue up 130%. 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 190.3% to 35.7%. 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.
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 24% a year✓ 31.9% CAGR
Latest reported year was 164.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 35%✓ 37.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹15 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 25%✓ 27.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 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

6 good · 4 neutral · 1 weak

Market Cap

₹382 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

9.3x

Cheap

Cheap against the generic band

P/B Ratio

3.69x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹2.37

Profitable

Profitable on a per-share basis

ROE

35.7%

Strong

Strong capital efficiency

ROCE

27.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.75x

Moderate

Moderate leverage

Revenue Growth (YoY)

164.0%

Healthy

Healthy top-line growth

Profit Growth (YoY)

71.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.54%

Modest

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

Free Cash Flow

-₹15 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

30.8%

Good

Healthy core-business profitability

Net Margin

24.8%

Good

Strong bottom-line conversion

Current Ratio

2.84

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.35

Defensive

Steadier than the market

52W Range Position

16%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

22.7 / 23.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

30.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹62 Cr	₹72 Cr	₹36 Cr	₹143 Cr	+31.9%
EBITDA	₹30 Cr	₹38 Cr	₹14 Cr	₹53 Cr	+20.9%
EBITDA Margin	48.3%	52.5%	39.4%	37.1%	—
PAT (Net Profit)	₹21 Cr	₹28 Cr	₹11 Cr	₹37 Cr	+20.8%
EPS	₹1.22	₹1.6	₹0.64	₹2.15	+20.8%
ROE	190.3%	48.0%	16.0%	35.7%	—
ROCE	162.6%	58.6%	10.5%	27.8%	—
Total Debt	₹32 Cr	₹38 Cr	₹73 Cr	₹83 Cr	+38.0%
Free Cash Flow	-₹10 Cr	-₹1 Cr	-₹31 Cr	-₹15 Cr	—

🟢 Revenue has grown at 31.9% a year over 3 years.

🟢 EBITDA has grown at 20.9% a year over 3 years.

🔴 EBITDA Margin has fallen from 48.3% to 37.1% over 3 years (-11.2 pts).

🟢 PAT (Net Profit) has grown at 20.8% a year over 3 years.

🟢 EPS has grown at 20.8% a year over 3 years.

🔴 ROE has fallen from 190.3% to 35.7% over 3 years (-154.6 pts).

🔴 ROCE has fallen from 162.6% to 27.8% over 3 years (-134.8 pts).

🔴 Total Debt has grown at 38.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹263 Cr

Total Liabilities

₹152 Cr

Cash & Equivalents

₹5 Cr

Operating Cash Flow

-₹6 Cr

Capex

-₹9 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

76.7%

Corporate Actions

Dividend Rate

₹0.12

Ex-Dividend Date

11 Sept 2026

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 mixed5 general

Suratwwala Business Group Ltd is Rated Hold

MarketsMojo, 15 Oct

Suratwwala Business Group Share Price Target 2027, 2028 and 2030: Long Term Analyst Forecast

Univest, 11 AugAnalyst view

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

Suratwwala Business Group (NSE:SBGLP) Strong Profits May Be Masking Some Underlying Issues

Simply Wall Street, 04 Jun

Suratwwala Business Group Share Price Analysis

Kalkine India, 18 Sept

Suratwwala Business Group Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 30 Aug

Suratwwala Business Group reports ₹38 crore PAT in FY26

scanx.trade, 19 Jun

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Profitability · Valuation

MiddlingFinancial Health

WeakRisk

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 5 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑