Shraddha Prime Projects Limited

Real Estate — Real Estate - Development · NSE

₹165.00−₹0.45 (−0.27%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, 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. Debt is 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 Shraddha Prime Projects Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Shraddha Prime Projects Limited engages in the real estate development business in India. It is also involved in developing, leasing, constructing, and redeveloping various residential and commercial projects.

IndustryReal Estate - Development

SectorReal Estate

Employees41

Annual revenue₹508 Cr

How does it make money?

Turns over ₹508 Cr a year. Of every ₹100 of sales, about ₹11 reaches shareholders as profit, with ₹22 left at the operating level before interest, tax and depreciation. Each of its 41 employees supports ₹12.40 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹12.40 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 29.0%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 40.8% against a peer median of 10.3% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

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 +5816% while net margin moved +85% 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+5816%

Margin effect+85%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.68 — 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
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

67/ 100

Good

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

Valuation

82/ 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

12.8x

Sector Median

30.2x

median of 3 sector peers

🟢Against its sector it trades 58% below the peer median of 30.2x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Cheap

30.2x median of 3 peers · -58%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

8.0x

PEG

0.03

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 11.0% to 22.2% over 3 years.
Return on equity is rising
ROE has improved from 36.4% to 40.8%.
High return on capital employed
ROCE of 29.0% 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 Attention1

Return on capital is falling
ROCE has declined from 61.4% to 29.0% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 198% over 3 years, from ₹88 Cr to ₹262 Cr.
🔴High leverageFinancial
Debt/Equity of 1.92x — earnings must service borrowings before shareholders see anything.
🔴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.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 327% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 29.0% 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 22.2%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Cheaper than its peers
It trades 58% 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?

Leverage amplifies any setback
Debt/Equity of 1.92x. Interest is payable whether or not the business has a good year.
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
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 217% a year✓ 289.7% CAGR
Latest reported year was 127.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 20%✓ 22.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹39 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✓ 3.3x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

8 / 10 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

Price history

Quick Metrics

6 good · 2 neutral · 3 weak

Market Cap

₹671 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

12.8x

Cheap

Cheap against the generic band

P/B Ratio

5.05x

Rich

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

EPS (TTM)

₹12.88

Profitable

Profitable on a per-share basis

ROE

40.8%

Strong

Strong capital efficiency

ROCE

29.0%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.92x

High

High leverage

Revenue Growth (YoY)

127.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

116.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹39 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

18.3%

Good

Healthy core-business profitability

Net Margin

11.0%

Good

Strong bottom-line conversion

Current Ratio

2.14

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.68

Defensive

Steadier than the market

52W Range Position

62%

Mid-range

Technical Snapshot

RSI (14)

69.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹9 Cr	₹84 Cr	₹156 Cr	₹508 Cr	+289.7%
EBITDA	₹1 Cr	₹11 Cr	₹50 Cr	₹113 Cr	+392.4%
EBITDA Margin	11.0%	12.8%	32.2%	22.2%	—
PAT (Net Profit)	₹0 Cr	₹7 Cr	₹25 Cr	₹54 Cr	+378.5%
EPS	₹0.56	₹2.18	₹10.49	₹13.21	+187.7%
ROE	36.4%	11.9%	31.3%	40.8%	—
ROCE	61.4%	15.6%	18.7%	29.0%	—
Total Debt	₹88 Cr	₹103 Cr	₹189 Cr	₹262 Cr	+43.9%
Free Cash Flow	-₹71 Cr	-₹66 Cr	-₹75 Cr	-₹39 Cr	—

🟢 Revenue has grown at 289.7% a year over 3 years.

🟢 EBITDA has grown at 392.4% a year over 3 years.

🟢 EBITDA Margin has risen from 11.0% to 22.2% over 3 years (+11.2 pts).

🟢 PAT (Net Profit) has grown at 378.5% a year over 3 years.

🟢 EPS has grown at 187.7% a year over 3 years.

🟢 ROE has risen from 36.4% to 40.8% over 3 years (+4.4 pts).

🔴 ROCE has fallen from 61.4% to 29.0% over 3 years (-32.4 pts).

🔴 Total Debt has grown at 43.9% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹699 Cr

Total Liabilities

₹563 Cr

Cash & Equivalents

₹34 Cr

Operating Cash Flow

-₹38 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

80.2%

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

Shraddha Prime Projects Ltd Sees Technical Momentum Shift Amid Mixed Market Signals

MarketsMojo, 18 Oct

Dividend, rights issue record date: Last chance to buy today - Shivam Autotech, Shraddha Prime, Anand Rathi Wealth

Livemint, 13 OctCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Shraddha Prime Projects launches Rs 120 crore Mulund West residential project

Dalal Street Investment Journal, 13 Oct

Compare SIMPLEX PROJECTS with TOWA SOKKI

Equitymaster, 16 Oct

Shraddha Prime books ₹60 crore on launch of Pandora project

scanx.trade, 12 Oct

Shraddha Prime Projects: மும்பையில் புதிய ப்ராஜெக்ட்! முதல் நாளில் **₹60 கோடி** வசூல்

Whalesbook, 12 Oct

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Growth · Profitability

MiddlingValuation

WeakFinancial Health · Risk

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

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive · see Key things to watch ↑