Unitech Limited

Real Estate — Real Estate - Diversified · NSE

₹3.94−₹0.03 (−0.76%)

DalalBaazaar Score

24 / 100

🔴 Weak

Verdict

HIGH RISK

Risk

Very High

Driven by negative shareholders' equity — the company owes more than it owns, short-term liabilities exceed short-term assets, negative free cash flow.

In simple words: The company owes more than it owns — years of losses have wiped out its net worth, with modest growth. Solvency — whether it can keep funding itself at all — 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 Unitech Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Unitech Limited together with its subsidiaries, engages in the real estate development and related activities in India. It is also involved in property management, hospitality, and investment businesses, as well as construction and allied services.

IndustryReal Estate - Diversified

SectorReal Estate

Annual revenue₹510 Cr

How does it make money?

Turns over ₹510 Cr a year. Of every ₹100 of sales, about ₹-481 reaches shareholders as profit, with ₹-149 left at the operating level before interest, tax and depreciation.

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 has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +28% while net margin moved -31% 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+28%

Margin effect-31%

DalalBaazaar Score

24/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Shareholders' equity is negative — accumulated losses exceed the capital in the business

Quality vs. Valuation

Company Quality

25/ 100

Weak

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

Valuation

30/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

Weak on business quality and not cheap enough to compensate.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

Multiples unreliable — equity base is negative

EV/EBITDA

—

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Margins are improving
EBITDA margin is up from -265.3% to -149.0% over 3 years.

🔴 What Needs Attention0

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

Red Flags

7 items require attention · 4 high · 3 watch

🔴Negative shareholders' equityFinancial
Liabilities exceed assets — accumulated losses have wiped out the company's net worth.
🔴Thin interest coverageFinancial
Operating profit covers interest only -0.6x — 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.
🔴The company is lossmakingFinancial
Net profit of -₹2,456 Cr in the latest reported year.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from -0.7x to -0.6x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹121 Cr in the latest year.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.62 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -265.3% to -149.0%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.

🔴 Bear CaseWhat could go wrong?

Solvency comes before everything else
Liabilities exceed assets. Until net worth is rebuilt, the equity is a claim on a business that owes more than it owns, and further losses or a funding squeeze can leave shareholders with nothing.
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
4 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 -151%✓ -149.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹121 Cr
Profit that never becomes cash eventually stops being profit.
3Interest cover stays above 3x✗ -0.6x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 6% a year✓ 8.5% CAGR
Latest reported year was 1.0%. The bar is set below the established compounding rate, so ordinary variation does not trip it.

Investment Checklist

5 / 9 checks passed

✗ Shareholders' equity is positive (assets exceed liabilities)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✗ 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

0 good · 6 neutral · 5 weak

Market Cap

₹1,031 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

Not available

No data

Source didn't return this field

EPS (TTM)

₹-8.78

Loss-making

Negative earnings per share — the business is losing money

ROE

Not meaningful

Negative equity

Return on equity can't be read when equity itself is negative

ROCE

Not available

No data

Source didn't return this field

Debt/Equity

Not meaningful

Negative equity

Shareholders' equity is negative, so this ratio can't be read

Revenue Growth (YoY)

1.0%

Modest

Modest growth

Profit Growth (YoY)

5.3%

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

-₹121 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

1.7x

Operating Margin

4.9%

Weak

Thin margins leave little room for error

Net Margin

0.0%

Weak

Very little revenue reaches the bottom line

Current Ratio

0.62

Tight

Tight short-term liquidity

Beta (vs Nifty)

1.03

Market-like

Moves roughly in line with the market

52W Range Position

20%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

4.0 / 4.0

Bullish alignment (short > long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

40.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹400 Cr	₹477 Cr	₹301 Cr	₹510 Cr	+8.5%
EBITDA	-₹1,061 Cr	-₹2,420 Cr	-₹1,290 Cr	-₹760 Cr	—
EBITDA Margin	-265.3%	-507.0%	-428.5%	-149.0%	—
PAT (Net Profit)	-₹2,788 Cr	-₹3,327 Cr	-₹2,593 Cr	-₹2,456 Cr	—
EPS	₹-10.65	₹-12.72	₹-9.91	₹-9.39	—
Total Debt	₹7,320 Cr	₹7,386 Cr	₹7,321 Cr	₹7,696 Cr	+1.7%
Free Cash Flow	₹247 Cr	₹13 Cr	-₹77 Cr	-₹121 Cr	—

🟢 Revenue has grown at 8.5% a year over 3 years.

🟢 EBITDA Margin has risen from -265.3% to -149.0% over 3 years (+116.3 pts).

🟡 Total Debt has been broadly flat over 3 years (1.7% a year).

🔴 Free Cash Flow has turned negative, from ₹247 Cr to -₹121 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹25,359 Cr

Total Liabilities

₹36,638 Cr

Cash & Equivalents

₹211 Cr

Operating Cash Flow

-₹116 Cr

Capex

-₹5 Cr

Shareholding (proxy)

Institutional Holding

0.3%

Insider Holding

16.2%

Corporate Actions

Ex-Dividend Date

11 Aug 2011

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

Unitech (UNITECH) Share/Stock Price Live, NSE

TechGraph, 07 Oct

InvestingPro’s Fair Value warned of 54% drop in Unitech shares By Investing.com

Investing.com India, 22 Aug

Unitech Limited Responds to Stock Exchange Queries on Recent Price Movement

scanx.trade, 08 Apr

Why Is Unitech Limited Share Price Falling Key Reasons 2026

Univest, 27 AprPrice 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.

Unitech Limited: How InvestingPro’s Fair Value model predicted a 51% drop By Investing.com

Investing.com India, 28 Dec

Unitech Ltd Stock Falls to 52-Week Low of Rs.4.68

MarketsMojo, 21 Jan

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
2 metrics couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

MiddlingGrowth

WeakBusiness Quality · Financial Health · Profitability · Valuation · Risk

Points for each in the Score ↑

Avoid until solvency is resolved

Unitech Limited owes more than it owns. Whatever the operating numbers show, the equity is a residual claim on a business with negative net worth, and that question has to be settled before any of the rest is worth weighing. 4 high-severity red flags sit above this conclusion and should be read first.

2 of 4 tripwires tripped — Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑