Suraj Estate Developers Limited

Real Estate — Real Estate - Development · NSE

₹196.00−₹6.10 (−3.02%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

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

In simple words: Reasonable but unspectacular business quality, with modest growth. 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

Mixed / neutral. No major red flags jump out, but nothing here screams "obviously cheap" either. This is a name that needs a peer comparison and a view on near-term earnings triggers before sizing a position.

Understanding the Business

Company site ↗

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

What does this company do?

Suraj Estate Developers Limited, together with its subsidiaries, engages in the real estate development business in India. The company develops and sells residential and commercial infrastructure projects.

IndustryReal Estate - Development

SectorReal Estate

Employees192

Annual revenue₹546 Cr

How does it make money?

Turns over ₹546 Cr a year. Of every ₹100 of sales, about ₹17 reaches shareholders as profit, with ₹40 left at the operating level before interest, tax and depreciation. Each of its 192 employees supports ₹2.84 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin40.0%

Net margin16.5%

Revenue / employee₹2.84 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 13.9% 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.

ROCE13.9%

ROE9.1%

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 +78% while net margin moved +57% 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+78%

Margin effect+57%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

• Beta of 0.90 — moves roughly with the market
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

59/ 100

Average

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

Valuation

88/ 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

10.0x

3Y Median

15.4x

36 monthly readings · mean 25.9x · range 8.9x–95.9x

Sector Median

30.2x

median of 3 sector peers

🟢Current valuation is approximately 35% below its 3y median of 15.4x. 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 67% below the peer median of 30.2x.

vs. its own history

Cheap

15.4x median over 36 months · -35%

vs. sector peers

Cheap

30.2x median of 3 peers · -67%

vs. generic bands

Cheap

Below 15x

P/E (Trailing)

10.0x

P/B

0.91x

EV/EBITDA

7.1x

PEG

0.24

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Valuation below its historical average
At 10.0x the stock trades 35% below its own median of 15.4x.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention4

Margins are compressing
EBITDA margin has slipped from 49.1% to 40.0% over 3 years.
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 45.0% to 9.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 35.0% to 13.9% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 2 high

🔴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.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 9.0 points, from 49.1% to 40.0%.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 35% 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 67% 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 49.1% to 40.0%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Returns on shareholder capital are falling
ROE has dropped from 45.0% to 9.1%. 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
2 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 16% a year✓ 21.3% CAGR
Latest reported year was 9.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 38%✓ 40.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 3.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹57 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 2.4x
How much operating profit can fall before interest stops being comfortably covered.

Investment Checklist

8 / 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

3 good · 7 neutral · 1 weak

Market Cap

₹940 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

10.0x

Cheap

Cheap against the generic band

P/B Ratio

0.91x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹19.6

Profitable

Profitable on a per-share basis

ROE

9.1%

Moderate

Moderate capital efficiency

ROCE

13.9%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.65x

Moderate

Moderate leverage

Revenue Growth (YoY)

9.2%

Modest

Modest growth

Profit Growth (YoY)

9.1%

Modest

Slow profit growth

Dividend Yield

None

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

Free Cash Flow

-₹57 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹196

P/E (Forward)

6.9x

Improving

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

Operating Margin

36.1%

Good

Healthy core-business profitability

Net Margin

16.2%

Good

Strong bottom-line conversion

Current Ratio

4.45

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.90

Market-like

Moves roughly in line with the market

52W Range Position

20%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

207.7 / 198.7

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

30.8

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹306 Cr	₹412 Cr	₹539 Cr	₹546 Cr	+21.3%
EBITDA	₹150 Cr	₹232 Cr	₹204 Cr	₹218 Cr	+13.3%
EBITDA Margin	49.1%	56.4%	37.8%	40.0%	—
PAT (Net Profit)	₹32 Cr	₹68 Cr	₹100 Cr	₹90 Cr	+41.1%
EPS	₹7.25	₹19.39	₹19.7	₹19.51	+39.1%
ROE	45.0%	13.1%	11.1%	9.1%	—
ROCE	35.0%	30.0%	15.9%	13.9%	—
Total Debt	₹593 Cr	₹430 Cr	₹461 Cr	₹645 Cr	+2.8%
Free Cash Flow	₹189 Cr	-₹16 Cr	-₹307 Cr	-₹57 Cr	—

🟢 Revenue has grown at 21.3% a year over 3 years.

🟢 EBITDA has grown at 13.3% a year over 3 years.

🔴 EBITDA Margin has fallen from 49.1% to 40.0% over 3 years (-9.0 pts).

🟢 PAT (Net Profit) has grown at 41.1% a year over 3 years.

🟢 EPS has grown at 39.1% a year over 3 years.

🔴 ROE has fallen from 45.0% to 9.1% over 3 years (-36.0 pts).

🔴 ROCE has fallen from 35.0% to 13.9% over 3 years (-21.1 pts).

🔴 Total Debt has grown at 2.8% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹189 Cr to -₹57 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,961 Cr

Total Liabilities

₹968 Cr

Total Debt

₹645 Cr

Cash & Equivalents

₹40 Cr

Operating Cash Flow

-₹54 Cr

Capex

-₹3 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

74.5%

Corporate Actions

Ex-Dividend Date

20 Sept 2024

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

Suraj Estate Developers vs Nifty 50: 1Y Return -27.57% vs -10.93%

Univest, 12 Oct

Why Suraj Estate Developers Limited (NSE:SURAJEST) Could Be Worth Watching

Simply Wall Street, 03 Jun

Suraj Estate Developers Q1FY27 revenue up 10% to ₹146 crore

scanx.trade, 17 AugResults

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

Suraj Estate Developers Share: Bull Case vs Bear Case for 2026

Univest, 25 Sept

Suraj Estate Developers Limited Begins FY27 on Strong Footing, Driven by Robust Sales Momentum

Business Standard, 20 Aug

Suraj Estate Developers Stock Signals to Watch This Week

Univest, 24 Sept

Watch Items

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

DalalBaazaar Thesis

🟢Business QualityStrong13/20

🟡Financial HealthAdequate9.7/20

🟢GrowthStrong14.9/20

🟡ProfitabilityModerate6.9/15

🟢ValuationAttractive13.2/15

🔴RiskHigh3.7/10

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

This thesis breaks if

✓Revenue growth stays above 16% a year21.3% CAGR
✓EBITDA margin holds above 38%40.0%
✗Debt / EBITDA stays below 2x3.0x
✗Free cash flow remains positive-₹57 Cr
✗Interest cover stays above 3x2.4x