DBREALTY - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.6
| Stock Code | DBREALTY | Market Cap | 5,618 Cr. | Current Price | 104 ₹ | High / Low | 219 ₹ |
| Stock P/E | 64.1 | Book Value | 84.3 ₹ | Dividend Yield | 0.00 % | ROCE | -2.92 % |
| ROE | -3.29 % | Face Value | 10.0 ₹ | DMA 50 | 105 ₹ | DMA 200 | 127 ₹ |
| Chg in FII Hold | 0.09 % | Chg in DII Hold | -0.14 % | PAT Qtr | 116 Cr. | PAT Prev Qtr | 55.2 Cr. |
| RSI | 50.4 | MACD | 1.11 | Volume | 13,68,584 | Avg Vol 1Wk | 13,45,383 |
| Low price | 83.0 ₹ | High price | 219 ₹ | PEG Ratio | 6.33 | Debt to equity | 0.03 |
| 52w Index | 15.1 % | Qtr Profit Var | 3,317 % | EPS | 1.61 ₹ | Industry PE | 28.8 |
📊 Financials: DBREALTY shows weak fundamentals with negative ROCE (-2.92%) and ROE (-3.29%), reflecting poor efficiency. Debt-to-equity is low (0.03), but profitability remains inconsistent. EPS of ₹1.61 is modest, and although quarterly PAT surged (₹116 Cr vs ₹55.2 Cr), sustainability is questionable.
💹 Valuation: Current P/E of 64.1 is far above industry average (28.8), suggesting steep overvaluation. PEG ratio of 6.33 indicates growth is priced expensively. P/B ratio (~1.23) is reasonable, but intrinsic value concerns remain due to weak return metrics. Dividend yield is 0.00%, limiting investor returns.
🏢 Business Model & Advantage: DBREALTY operates in real estate development, a cyclical sector dependent on regulatory approvals and demand cycles. Competitive advantage is limited, with weak efficiency metrics and reliance on short-term profit spikes.
📈 Entry Zone: Safer accumulation near ₹83–₹95 (long-term support). Current price (₹104) is close to DMA 50 (₹105) but below DMA 200 (₹127), reflecting medium-term weakness.
⏳ Long-Term Holding: High-risk candidate. Suitable only for speculative swing trades unless ROE/ROCE improve and earnings stabilize. Long-term holding not recommended without fundamental turnaround.
Positive
- Low debt-to-equity (0.03)
- Quarterly PAT surged significantly (₹116 Cr vs ₹55.2 Cr)
- EPS recovery at ₹1.61
- FII inflows (+0.09%) show selective confidence
Limitation
- Negative ROCE (-2.92%) and ROE (-3.29%)
- High P/E (64.1 vs industry 28.8)
- PEG ratio of 6.33 indicates expensive growth
- Dividend yield 0.00%, limiting investor returns
Company Negative News
- Weak fundamentals with negative efficiency metrics
- DII holdings reduced (-0.14%), showing domestic caution
- Valuation premium raises risk of correction
Company Positive News
- Strong quarterly profit growth (+3,317% variation)
- EPS improvement supports earnings recovery
- FII inflows (+0.09%) reflect marginal institutional confidence
Industry
- Real estate sector trading at PE ~28.8, making DBREALTY relatively expensive
- Sector outlook remains mixed with cyclical demand and regulatory challenges
Conclusion
DBREALTY shows strong short-term profit momentum but weak fundamentals and stretched valuations. Entry near ₹83–₹95 offers limited margin of safety, while exits should be considered near ₹125–₹130. Risk-managed exposure is essential due to volatility and poor efficiency metrics. Long-term holding is not advisable unless profitability stabilizes.