VEEGALAND DEVELOPERS LTD

Real Estate — Real Estate - Diversified · NSE

₹130.20+₹3.17 (+2.50%)

DalalBaazaar Score

59 / 100

🟡 Moderate

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 both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

The 60-second version of VEEGALAND DEVELOPERS LTD — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Veegaland Developers Limited engages in the planning, development, and sale of multi storied residential apartment projects in India. It operates under the Veegaland Homes brand name. The company was incorporated in 2007 and is based in Ernakulam, India.

IndustryReal Estate - Diversified

SectorReal Estate

Annual revenue₹251 Cr

How does it make money?

Turns over ₹251 Cr a year. Of every ₹100 of sales, about ₹11 reaches shareholders as profit, with ₹17 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 is its competitive advantage?Little sign of one

Returns on capital of 14.0% 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?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +130% while net margin moved -21% 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+130%

Margin effect-21%

DalalBaazaar Score

59/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

63/ 100

Average

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

Valuation

69/ 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

19.2x

Sector Median

30.2x

median of 3 sector peers

🟢Against its sector it trades 36% 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 · -36%

vs. generic bands

Fair

15x–35x

EV/EBITDA

16.8x

PEG

0.86

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 30% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 39.0% to 10.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 34.9% to 14.0% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 3 high · 1 watch

🔴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 5.2 points, from 22.2% to 17.0%.
🔴Receivables growing faster than salesFinancial
Receivables up 606% against revenue up 130% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹95 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 30% 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 36% 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 22.2% to 17.0%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 606% against revenue up 130%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 39.0% to 10.0%. 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.
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 24% a year✓ 32.1% CAGR
Latest reported year was 79.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 15%✓ 17.0%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹95 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 11%✓ 14.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 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

4 good · 6 neutral · 1 weak

Market Cap

₹635 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

19.2x

Fair

Fairly valued against the generic band

P/B Ratio

1.65x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹6.79

Profitable

Profitable on a per-share basis

ROE

10.0%

Moderate

Moderate capital efficiency

ROCE

14.0%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.32x

Low

Conservative leverage

Revenue Growth (YoY)

79.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

123.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

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

Free Cash Flow

-₹95 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

17.2%

Good

Healthy core-business profitability

Net Margin

11.7%

Good

Strong bottom-line conversion

Current Ratio

2.08

Comfortable

Healthy short-term liquidity

52W Range Position

18%

Mid-range

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹109 Cr	₹111 Cr	₹192 Cr	₹251 Cr	+32.1%
EBITDA	₹24 Cr	₹17 Cr	₹34 Cr	₹43 Cr	+20.8%
EBITDA Margin	22.2%	15.1%	17.6%	17.0%	—
PAT (Net Profit)	₹15 Cr	₹8 Cr	₹20 Cr	₹27 Cr	+22.4%
EPS	₹2.98	₹1.61	₹4.19	—	—
ROE	39.0%	17.5%	31.2%	10.0%	—
ROCE	34.9%	11.2%	18.5%	14.0%	—
Total Debt	₹122 Cr	₹120 Cr	₹177 Cr	₹86 Cr	-11.2%
Free Cash Flow	₹42 Cr	₹8 Cr	-₹45 Cr	-₹95 Cr	—

🟢 Revenue has grown at 32.1% a year over 3 years.

🟢 EBITDA has grown at 20.8% a year over 3 years.

🔴 EBITDA Margin has fallen from 22.2% to 17.0% over 3 years (-5.2 pts).

🟢 PAT (Net Profit) has grown at 22.4% a year over 3 years.

🔴 ROE has fallen from 39.0% to 10.0% over 3 years (-29.0 pts).

🔴 ROCE has fallen from 34.9% to 14.0% over 3 years (-20.9 pts).

🟢 Total Debt has shrunk at 11.2% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹42 Cr to -₹95 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹484 Cr

Total Liabilities

₹217 Cr

Cash & Equivalents

₹3 Cr

Operating Cash Flow

-₹74 Cr

Capex

-₹21 Cr

Shareholding (proxy)

Institutional Holding

0.7%

Insider Holding

74.6%

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

6 general

VEEGALAND DEVELOPERS LTD Share Price

Upstox, 16 Oct

Veegaland Developers Ltd (VEEGALAND) Share Price

Business Today, 15 Oct

Veegaland Developers shares list at 10% premium in decent market debut; should you buy, sell or hold?

Moneycontrol.com, 18 Sept

Veegaland Developers shares end 4.5% higher in market debut trade

ET Realty, 19 Sept

Veegaland Developers shares list at 10% premium over IPO price on NSE

The Economic Times, 18 Sept

Veegaland Developers shares list at 10% premium over IPO price on NSE

Business Standard, 18 Sept

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingBusiness Quality · Profitability · Valuation

WeakRisk

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

2 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive · see Key things to watch ↑