Shri Krishna Devcon Limited

Real Estate — Real Estate - Development · NSE

₹32.50−₹0.02 (−0.06%)

DalalBaazaar Score

55 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, 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. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:48 pm

Understanding the Business

Company site ↗

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

What does this company do?

Shri Krishna Devcon Limited engages in real estate business in India. The company is involved in the construction and development of townships, housing projects, commercial premises, and other related activities.

IndustryReal Estate - Development

SectorReal Estate

Employees12

Annual revenue₹21 Cr

How does it make money?

Turns over ₹21 Cr a year. Of every ₹100 of sales, about ₹21 reaches shareholders as profit, with ₹42 left at the operating level before interest, tax and depreciation. Each of its 12 employees supports ₹1.78 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.78 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?Little sign of one

Returns on capital of 8.4% 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.

Peer median ROE10.3%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved -32% while net margin moved +38% 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-32%

Margin effect+38%

DalalBaazaar Score

55/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 11.9% a year
✗ Profit has declined at 1.9% a year
✗ Latest-year revenue growth of -20.6% is below the longer-term trend — momentum is fading
✗ Profit fell 35.3% in the latest year

Quality vs. Valuation

Company Quality

52/ 100

Average

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

Valuation

73/ 100

Cheap

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

22.4x

Sector Median

30.2x

median of 3 sector peers

🟢Against its sector it trades 26% 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 · -26%

vs. generic bands

Fair

15x–35x

EV/EBITDA

14.7x

PEG

—

What's Good / What's Bad

🟢 What's Going Well3

Margins are improving
EBITDA margin is up from 31.3% to 42.1% over 3 years.
Debt is being paid down
Total debt is down 18% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 2 watch

🟡Free cash flow is negativeFinancial
Free cash flow was -₹5 Cr in the latest year.
🟡Inventory building faster than salesFinancial
Inventory up 24% against revenue up -32% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 31.3% to 42.1%. 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 18% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 26% 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?

The debt load needs earnings to hold up
Debt is 5.1x EBITDA. At that level a downturn in earnings turns a manageable balance sheet into a refinancing problem, and lenders get paid before shareholders.
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

1EBITDA margin holds above 40%✓ 42.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA falls below 3x✗ 5.1x
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✗ -₹5 Cr
Profit that never becomes cash eventually stops being profit.
4Interest cover stays above 3x✓ 3.1x
How much operating profit can fall before interest stops being comfortably covered.
5ROCE stays above 8%✓ 8.4%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

5 / 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

3 good · 4 neutral · 4 weak

Market Cap

₹91 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

22.4x

Fair

Fairly valued against the generic band

P/B Ratio

0.99x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹1.45

Profitable

Profitable on a per-share basis

ROE

5.0%

Weak

Weak capital efficiency

ROCE

8.4%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.50x

Low

Conservative leverage

Revenue Growth (YoY)

-20.6%

Shrinking

Sales are contracting

Profit Growth (YoY)

-35.3%

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

-₹5 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

54.0%

Good

Healthy core-business profitability

Net Margin

19.9%

Good

Strong bottom-line conversion

Current Ratio

1.74

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.39

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

RSI (14)

44.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹31 Cr	₹25 Cr	₹27 Cr	₹21 Cr	-11.9%
EBITDA	₹10 Cr	₹10 Cr	₹10 Cr	₹9 Cr	-2.8%
EBITDA Margin	31.3%	38.7%	35.4%	42.1%	—
PAT (Net Profit)	₹5 Cr	₹4 Cr	₹5 Cr	₹5 Cr	-1.9%
EPS	₹1.72	₹1.59	₹1.76	₹1.63	-1.8%
ROE	6.2%	5.4%	5.7%	5.0%	—
ROCE	9.4%	9.3%	8.8%	8.4%	—
Total Debt	₹55 Cr	₹52 Cr	₹39 Cr	₹46 Cr	-6.2%
Free Cash Flow	₹13 Cr	-₹2 Cr	₹13 Cr	-₹5 Cr	—

🔴 Revenue has shrunk at 11.9% a year over 3 years.

🔴 EBITDA has shrunk at 2.8% a year over 3 years.

🟢 EBITDA Margin has risen from 31.3% to 42.1% over 3 years (+10.8 pts).

🟡 PAT (Net Profit) has been broadly flat over 3 years (-1.9% a year).

🟡 EPS has been broadly flat over 3 years (-1.8% a year).

🔴 ROE has fallen from 6.2% to 5.0% over 3 years (-1.2 pts).

🟡 ROCE has held roughly flat at 8.4% over 3 years.

🟢 Total Debt has shrunk at 6.2% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹13 Cr to -₹5 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹212 Cr

Total Liabilities

₹121 Cr

Cash & Equivalents

₹4 Cr

Operating Cash Flow

-₹5 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

94.9%

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

Shri Krishna Devcon Ltd is Rated Strong Sell

MarketsMojo, 16 Oct

Shri Krishna Devcon (SHRIKRISH.NS) Slips 3.76% to ₹32.77, Testing Key Support Zone - Moving Average Ribbon

https://www.siam.in/, 06 Oct

Shri Krishna Devcon Ltd. Lower Circuit Today: Price, Data and Peers

Univest, 30 Sept

Shri Krishna Devcon Ltd (NSE: SHRIKRISH) Declines 6.76% as Stock Draws Market Attention

Kalkine India, 25 Sept

Allied Digital Services Ltd leads gainers in 'B' group

Business Standard, 25 Sept

Shri Krishna Devcon Ltd. Share Price Fall and Stock Analysis

Univest, 17 AugPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Watch Items

Revenue growth is negative (-20.6%) on the latest reported period — check if this is one-off or a trend.
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

StrongBusiness Quality · Valuation

MiddlingFinancial Health · Profitability · Risk

WeakGrowth

Points for each in the Score ↑

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 of 5 tripwires tripped — Debt / EBITDA falls below 3x; Free cash flow remains positive · see Key things to watch ↑