Sugal Earthen Spaces Ventures Limited

Real Estate — Real Estate - Development · BSE

₹65.00+₹0.79 (+1.23%)

DalalBaazaar Score

62 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity, falling profits.

In simple words: Strong business and financial position, but sales are shrinking. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:59 pm

Understanding the Business

Company site ↗

The 60-second version of Sugal Earthen Spaces Ventures Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Sugal Earthen Spaces Ventures Limited provides share broking services in India. It operates in two segments, Share Brokering and Real Estate.

IndustryReal Estate - Development

SectorReal Estate

Employees20

Annual revenue₹20 Cr

How does it make money?

Turns over ₹20 Cr a year. Of every ₹100 of sales, about ₹21 reaches shareholders as profit, with ₹27 left at the operating level before interest, tax and depreciation. Each of its 20 employees supports ₹98.3 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹98.3 lakh

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 18.6% 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 +1461% while net margin moved -73% 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+1461%

Margin effect-73%

DalalBaazaar Score

62/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.70 — 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

Quality vs. Valuation

Company Quality

65/ 100

Good

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

Valuation

68/ 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

17.8x

3Y Median

13.3x

40 monthly readings · mean 14.9x · range 7.3x–31.4x

Sector Median

30.2x

median of 3 sector peers

⚠️Current valuation is approximately 33% above its 3y median of 13.3x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 41% below the peer median of 30.2x.

vs. its own history

Expensive

13.3x median over 40 months · +33%

vs. sector peers

Cheap

30.2x median of 3 peers · -41%

vs. generic bands

Fair

15x–35x

EV/EBITDA

7.6x

PEG

0.29

What's Good / What's Bad

🟢 What's Going Well5

Debt is being paid down
Total debt is down 57% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from 5.1% to 13.8%.
Return on capital is rising
ROCE has improved from 7.9% to 18.6%.
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

3 items require attention · 3 high

🔴High leverageFinancial
Debt/Equity of 1.50x — earnings must service borrowings before shareholders see anything.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 26.6 points, from 54.0% to 27.4%.
🔴Inventory building faster than salesFinancial
Inventory up 30284% against revenue up 1461% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 18.6% 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.
Deleveraging frees up earnings
Debt is down 57% 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 41% 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 54.0% to 27.4%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 1.50x. Interest is payable whether or not the business has a good year.
The price already assumes success
The stock trades 33% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
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 112% a year✓ 149.9% CAGR
Latest reported year was -71.5%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 25%✓ 27.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹8 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.1x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 16%✓ 18.6%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

6 / 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

4 good · 4 neutral · 3 weak

Market Cap

₹41 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

17.8x

Fair

Fairly valued against the generic band

P/B Ratio

1.36x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹3.65

Profitable

Profitable on a per-share basis

ROE

13.8%

Moderate

Moderate capital efficiency

ROCE

18.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

1.50x

High

High leverage

Revenue Growth (YoY)

-71.5%

Shrinking

Sales are contracting

Profit Growth (YoY)

-90.8%

Falling

Profits are shrinking

Dividend Yield

1.54%

Modest

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

Free Cash Flow

₹8 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

15.4%

Good

Healthy core-business profitability

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

5.44

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.70

Defensive

Steadier than the market

52W Range Position

21%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

66.1 / 65.2

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

46.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1 Cr	₹5 Cr	₹25 Cr	₹20 Cr	+149.9%
EBITDA	₹1 Cr	₹3 Cr	₹6 Cr	₹5 Cr	+99.2%
EBITDA Margin	54.0%	55.2%	23.7%	27.4%	—
PAT (Net Profit)	₹1 Cr	₹2 Cr	₹5 Cr	₹4 Cr	+61.7%
EPS	₹1.56	₹3.7	₹7.6	₹6.61	+61.8%
ROE	5.1%	10.9%	18.3%	13.8%	—
ROCE	7.9%	16.8%	24.9%	18.6%	—
Total Debt	₹1 Cr	₹4 Cr	₹2 Cr	₹0 Cr	-24.6%
Free Cash Flow	-₹12 Cr	-₹6 Cr	₹13 Cr	₹8 Cr	—

🟢 Revenue has grown at 149.9% a year over 3 years.

🟢 EBITDA has grown at 99.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 54.0% to 27.4% over 3 years (-26.6 pts).

🟢 PAT (Net Profit) has grown at 61.7% a year over 3 years.

🟢 EPS has grown at 61.8% a year over 3 years.

🟢 ROE has risen from 5.1% to 13.8% over 3 years (+8.7 pts).

🟢 ROCE has risen from 7.9% to 18.6% over 3 years (+10.7 pts).

🟢 Total Debt has shrunk at 24.6% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹12 Cr to ₹8 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹33 Cr

Total Liabilities

₹3 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹8 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

78.5%

Corporate Actions

Dividend Rate

₹1

Ex-Dividend Date

21 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

2 general

Sugal Earthen Spaces Ventures (BSE:511654) - Stock Analysis

Simply Wall Street, 25 Jun

Twentyfirst Century Management Services (BSE:526921) - Stock Analysis

Simply Wall Street, 01 Dec

Watch Items

Revenue growth is negative (-71.5%) 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

StrongBusiness Quality · Financial Health

MiddlingGrowth · Profitability · Valuation

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

All 5 tripwires holding · see Key things to watch ↑