Shradha Realty Limited

Real Estate — Real Estate - Development · NSE

₹29.92+₹0.52 (+1.77%)

DalalBaazaar Score

66 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

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

In simple words: Reasonable but unspectacular business quality, but sales are shrinking. 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 Shradha Realty Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Shradha Realty Limited, an infrastructure development company, engages in the real estate development business in India. The company operates through two segments, Infrastructure and Real Estate. It develops residential, commercial, retail, and social infrastructure projects.

IndustryReal Estate - Development

SectorReal Estate

Employees12

Annual revenue₹117 Cr

How does it make money?

Turns over ₹117 Cr a year. Of every ₹100 of sales, about ₹23 reaches shareholders as profit, with ₹30 left at the operating level before interest, tax and depreciation. Each of its 12 employees supports ₹9.75 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin30.0%

Net margin22.9%

Revenue / employee₹9.75 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 10.7% 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.

ROCE10.7%

ROE9.0%

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 +29% while net margin moved +46% 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+29%

Margin effect+46%

DalalBaazaar Score

66/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.60 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

65/ 100

Good

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

Valuation

83/ 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

8.0x

3Y Median

14.4x

40 monthly readings · mean 15.6x · range 6.9x–30.9x

Sector Median

30.2x

median of 3 sector peers

🟢Current valuation is approximately 45% below its 3y median of 14.4x. 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 74% below the peer median of 30.2x.

vs. its own history

Cheap

14.4x median over 40 months · -45%

vs. sector peers

Cheap

30.2x median of 3 peers · -74%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

8.0x

P/B

0.81x

EV/EBITDA

9.5x

PEG

0.34

Dividend Yield

2.01%

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 16.1% to 30.0% over 3 years.
Debt is being paid down
Total debt is down 28% over 3 years.
Valuation below its historical average
At 8.0x the stock trades 45% below its own median of 14.4x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention4

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 19.3% to 9.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 17.6% to 10.7% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 793% against revenue growth of 29% — customers are taking longer to pay.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Free cash flow negative for 3 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.
🔴Receivables growing faster than salesFinancial
Receivables up 793% against revenue up 29% — sales are being booked faster than they are collected.
🟡Shareholders have been dilutedOwnership
Shares outstanding are up 38% over 3 years — each existing share owns a smaller slice of the company.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 16.1% to 30.0%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 28% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 45% 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 74% 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?

Sales are being booked faster than collected
Receivables are up 793% against revenue up 29%. 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 19.3% to 9.0%. 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

1EBITDA margin holds above 28%✓ 30.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Free cash flow remains positive✗ -₹84 Cr
Profit that never becomes cash eventually stops being profit.
4Revenue growth stays above 7% a year✓ 9.0% CAGR
Latest reported year was -9.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5ROCE stays above 8%✓ 10.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

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

5 good · 3 neutral · 3 weak

Market Cap

₹242 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

8.0x

Cheap

Cheap against the generic band

P/B Ratio

0.81x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹3.76

Profitable

Profitable on a per-share basis

ROE

9.0%

Moderate

Moderate capital efficiency

ROCE

10.7%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.30x

Low

Conservative leverage

Revenue Growth (YoY)

-9.5%

Shrinking

Sales are contracting

Profit Growth (YoY)

-41.3%

Falling

Profits are shrinking

Dividend Yield

2.01%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

-₹84 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹29.92

Operating Margin

8.0%

Average

Average margins

Net Margin

23.2%

Good

Strong bottom-line conversion

Current Ratio

4.27

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.60

Defensive

Steadier than the market

52W Range Position

16%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

29.9 / 31.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

46.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹90 Cr	₹110 Cr	₹109 Cr	₹117 Cr	+9.0%
EBITDA	₹15 Cr	₹24 Cr	₹32 Cr	₹35 Cr	+34.0%
EBITDA Margin	16.1%	21.6%	29.6%	30.0%	—
PAT (Net Profit)	₹14 Cr	₹19 Cr	₹18 Cr	₹27 Cr	+23.7%
EPS	₹2.42	₹3.18	₹2.76	—	—
ROE	19.3%	20.3%	12.1%	9.0%	—
ROCE	17.6%	19.0%	15.3%	10.7%	—
Total Debt	₹138 Cr	₹135 Cr	₹153 Cr	₹100 Cr	-10.2%
Free Cash Flow	₹25 Cr	-₹3 Cr	-₹27 Cr	-₹84 Cr	—

🟢 Revenue has grown at 9.0% a year over 3 years.

🟢 EBITDA has grown at 34.0% a year over 3 years.

🟢 EBITDA Margin has risen from 16.1% to 30.0% over 3 years (+13.8 pts).

🟢 PAT (Net Profit) has grown at 23.7% a year over 3 years.

🔴 ROE has fallen from 19.3% to 9.0% over 3 years (-10.3 pts).

🔴 ROCE has fallen from 17.6% to 10.7% over 3 years (-6.8 pts).

🟢 Total Debt has shrunk at 10.2% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹25 Cr to -₹84 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹489 Cr

Total Liabilities

₹152 Cr

Total Debt

₹100 Cr

Cash & Equivalents

₹10 Cr

Operating Cash Flow

-₹42 Cr

Capex

-₹42 Cr

Corporate Actions

Dividend Rate

₹0.6

Ex-Dividend Date

21 Aug 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

Shradha Realty (SHRADHA) Share/Stock Price Live, NSE

TechGraph, 08 Oct

Shradha Realty Limited (SHRADHA.NS) Gains 3.11% to ₹30.5, Testing Resistance Near ₹32 - Cash Secured Put

siam.in, 30 Sept

Shradha Realty (NSEI:SHRADHA) - Stock Analysis

Simply Wall Street, 04 Feb

Shradha Realty Share Price Forecast to 2030

Univest, 27 Jul

Shradha Realty (NSE:SHRADHA): What Does Its Q2 FY27 Reg 74(5) Filing Confirm?

Kalkine India, 10 OctResults

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

SHRADHA INFRAPROJECTS Share Price

Upstox, 05 May

Watch Items

Revenue growth is negative (-9.5%) 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 QualityStrong13/20

🟢Financial HealthStrong15/20

🟢GrowthStrong13.3/20

🟡ProfitabilityModerate7.5/15

🟢ValuationAttractive12.8/15

🔴RiskHigh4.4/10

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.

This thesis breaks if

✓EBITDA margin holds above 28%30.0%
✗Debt / EBITDA stays below 2x2.8x
✗Free cash flow remains positive-₹84 Cr
✓Revenue growth stays above 7% a year9.0% CAGR
✓ROCE stays above 8%10.7%