⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
DBREALTY - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.8
| Stock Code | DBREALTY | Market Cap | 5,538 Cr. | Current Price | 102 ₹ | High / Low | 219 ₹ |
| Stock P/E | 63.2 | Book Value | 84.3 ₹ | Dividend Yield | 0.00 % | ROCE | -2.92 % |
| ROE | -3.29 % | Face Value | 10.0 ₹ | DMA 50 | 112 ₹ | DMA 200 | 136 ₹ |
| Chg in FII Hold | -0.18 % | Chg in DII Hold | -0.07 % | PAT Qtr | 116 Cr. | PAT Prev Qtr | 55.2 Cr. |
| RSI | 41.6 | MACD | -4.31 | Volume | 27,05,989 | Avg Vol 1Wk | 26,58,278 |
| Low price | 94.9 ₹ | High price | 219 ₹ | PEG Ratio | 6.24 | Debt to equity | 0.03 |
| 52w Index | 5.73 % | Qtr Profit Var | 3,317 % | EPS | 1.61 ₹ | Industry PE | 28.4 |
📊 Financial Overview
- Revenue & Profitability: Quarterly PAT surged from 55.2 Cr. to 116 Cr. (3,317% growth), but sustainability is questionable. EPS at 1.61 ₹ remains weak.
- Margins & Returns: ROCE at -2.92% and ROE at -3.29% indicate poor efficiency and negative shareholder returns.
- Debt: Debt-to-equity ratio of 0.03 shows low leverage, but profitability issues overshadow balance sheet strength.
- Cash Flow: Volatile earnings raise concerns about consistency and long-term cash generation.
💹 Valuation
- P/E Ratio: 63.2 vs Industry PE of 28.4 → Significantly overvalued relative to peers.
- P/B Ratio: Current Price 102 ₹ vs Book Value 84.3 ₹ → Slight premium.
- PEG Ratio: 6.24 → Expensive relative to growth prospects.
- Intrinsic Value: Current price trades above fair value, limited margin of safety.
🏢 Business Model & Competitive Advantage
- Real estate-focused business with cyclical earnings.
- Weak return metrics highlight lack of sustainable competitive advantage.
- Low debt provides some resilience, but profitability remains inconsistent.
📈 Technicals & Entry Zone
- RSI at 41.6 → Near oversold territory, potential accumulation zone.
- MACD negative (-4.31) → Weak momentum, short-term caution advised.
- Entry Zone: 95–100 ₹ range offers better risk-reward.
- Long-Term Holding: Risky due to poor fundamentals; suitable only for speculative investors.
✅ Positive
- Quarterly PAT showed sharp improvement (116 Cr. vs 55.2 Cr.).
- Low debt-to-equity ratio ensures financial flexibility.
- Stock trading near lower range offers potential accumulation opportunity.
⚠️ Limitation
- Negative ROCE and ROE highlight poor efficiency.
- High P/E and PEG ratios suggest overvaluation.
- Volatile earnings raise sustainability concerns.
📉 Company Negative News
- FII holdings decreased by 0.18% and DII holdings by 0.07%, showing reduced institutional confidence.
- 52-week performance only 5.73%, reflecting weak investor returns.
📈 Company Positive News
- Quarterly PAT growth of 3,317% indicates strong short-term performance.
🏭 Industry
- Industry PE at 28.4 suggests sector trades at lower multiples.
- DBREALTY commands a premium despite weak fundamentals, driven by speculative interest.
🔎 Conclusion
DBREALTY shows extreme volatility with weak fundamentals, negative return ratios, and overvaluation compared to industry peers. While the latest quarterly profit spike is encouraging, sustainability remains doubtful. Entry is favorable near 95–100 ₹ for speculative investors, but long-term holding carries significant risk due to poor efficiency and inconsistent earnings.