Shriram Properties Limited

Real Estate — Real Estate - Development · NSE

₹67.90+₹0.26 (+0.38%)

DalalBaazaar Score

56 / 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, 6:10 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 Shriram Properties Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Shriram Properties Limited, a real estate development company, engages in the business of construction, development, and sale of residential and commercial properties in India.

IndustryReal Estate - Development

SectorReal Estate

Employees663

Annual revenue₹1,255 Cr

How does it make money?

Turns over ₹1,255 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 663 employees supports ₹1.89 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin12.3%

Net margin8.0%

Revenue / employee₹1.89 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 9.6% 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.

ROCE9.6%

ROE6.9%

Peer median ROE10.3%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 34.7% and earnings to grow about 112.5% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+34.7%

Est. earnings growth+112.5%

Analysts1

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 +95% while net margin moved -22% 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+95%

Margin effect-22%

DalalBaazaar Score

56/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ ROCE of 9.6% is below 10% — capital is not working hard
✗ ROCE has fallen by 3.5 points — returns are eroding
• EBITDA margin of 12.3% is respectable
✗ Net margin of 7.3% is slim
• Revenue has compounded at 24.9% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

50/ 100

Average

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

Valuation

84/ 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

12.7x

3Y Median

20.8x

40 monthly readings · mean 21.8x · range 11.5x–32.9x

Sector Median

30.2x

median of 3 sector peers

🟢Current valuation is approximately 39% below its 3y median of 20.8x. 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 58% below the peer median of 30.2x.

vs. its own history

Cheap

20.8x median over 40 months · -39%

vs. sector peers

Cheap

30.2x median of 3 peers · -58%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

12.7x

P/B

0.79x

EV/EBITDA

10.7x

PEG

0.84

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Valuation below its historical average
At 12.7x the stock trades 39% below its own median of 20.8x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention3

Margins are compressing
EBITDA margin has slipped from 21.3% to 12.3% over 3 years.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on capital is falling
ROCE has declined from 13.1% to 9.6% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only 2.0x — little room if earnings dip.
🔴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 9.1 points, from 21.3% to 12.3%.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹20 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.
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?

Margins are being competed away
EBITDA margin has fallen from 21.3% to 12.3%. 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 4.0x 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.
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 19% a year✓ 24.9% CAGR
Latest reported year was -7.4%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 10%✓ 12.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA falls below 3x✗ 4.0x
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✗ -₹20 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 2.0x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

5 / 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 · 3 neutral · 4 weak

Market Cap

₹1,159 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

12.7x

Cheap

Cheap against the generic band

P/B Ratio

0.79x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹5.35

Profitable

Profitable on a per-share basis

ROE

6.9%

Weak

Weak capital efficiency

ROCE

9.6%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.42x

Low

Conservative leverage

Revenue Growth (YoY)

-7.4%

Shrinking

Sales are contracting

Profit Growth (YoY)

-46.3%

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

-₹20 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹67.9

P/E (Forward)

5.7x

Improving

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

Operating Margin

-3.3%

Weak

Thin margins leave little room for error

Net Margin

7.3%

Average

Average bottom-line conversion

Current Ratio

1.63

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.83

Market-like

Moves roughly in line with the market

52W Range Position

19%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

69.1 / 74.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

34.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹644 Cr	₹843 Cr	₹818 Cr	₹1,255 Cr	+24.9%
EBITDA	₹137 Cr	₹164 Cr	₹113 Cr	₹154 Cr	+3.8%
EBITDA Margin	21.3%	19.5%	13.9%	12.3%	—
PAT (Net Profit)	₹66 Cr	₹75 Cr	₹77 Cr	₹101 Cr	+15.2%
EPS	₹3.88	₹4.44	₹4.53	₹5.91	+15.1%
ROE	5.5%	5.9%	5.7%	6.9%	—
ROCE	13.1%	12.8%	12.5%	9.6%	—
Total Debt	₹644 Cr	₹656 Cr	₹655 Cr	₹616 Cr	-1.5%
Free Cash Flow	-₹1 Cr	₹212 Cr	₹148 Cr	-₹20 Cr	—

🟢 Revenue has grown at 24.9% a year over 3 years.

🟢 EBITDA has grown at 3.8% a year over 3 years.

🔴 EBITDA Margin has fallen from 21.3% to 12.3% over 3 years (-9.1 pts).

🟢 PAT (Net Profit) has grown at 15.2% a year over 3 years.

🟢 EPS has grown at 15.1% a year over 3 years.

🟢 ROE has risen from 5.5% to 6.9% over 3 years (+1.4 pts).

🔴 ROCE has fallen from 13.1% to 9.6% over 3 years (-3.5 pts).

🟡 Total Debt has been broadly flat over 3 years (-1.5% a year).

Balance Sheet & Cash Flow — FY2026

Total Assets

₹3,714 Cr

Total Liabilities

₹2,254 Cr

Total Debt

₹616 Cr

Cash & Equivalents

₹134 Cr

Operating Cash Flow

-₹16 Cr

Capex

-₹4 Cr

Shareholding (proxy)

Institutional Holding

5.8%

Insider Holding

49.3%

Analyst Consensus

Recommendations

1 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹125

+84.1% vs CMP

Target Range

₹125 – ₹125

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 positive2 mixed1 negative2 general

Should You Think About Buying Shriram Properties Limited (NSE:SHRIRAMPPS) Now?

Simply Wall Street, 26 May

Shriram Properties Q1 Profit Falls 46% to ₹11 Cr

HDFC Sky, 13 AugResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

Compare with

Equitymaster, 16 Oct

Shriram Properties Share Price Target 2026: Expert Forecast, Growth Catalysts and Key Risks

Univest, 07 MayAnalyst view

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

Shriram Properties Q1FY27 revenue rises 4% to ₹271.1 crore; sales up 10%

scanx.trade, 07 AugResults

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

Shriram Properties expects Rs 600 cr revenue from upcoming JV project in Bengaluru

The Economic Times, 16 JunPartnership

🟡Mixed / dependsA partnership, whose value depends entirely on terms that a headline will not carry. Worth reading the filing before assuming either way.

Watch Items

Revenue growth is negative (-7.4%) 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 QualityWeak7.5/20

🟡Financial HealthAdequate10.9/20

🟡GrowthModest12.9/20

🔴ProfitabilityWeak6.2/15

🟢ValuationAttractive13.2/15

🟡RiskModerate4.8/10

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

This thesis breaks if

✓Revenue growth stays above 19% a year24.9% CAGR
✓EBITDA margin holds above 10%12.3%
✗Debt / EBITDA falls below 3x4.0x
✗Free cash flow remains positive-₹20 Cr
✗Interest cover stays above 3x2.0x