DBREALTY - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 2.4

Here’s a detailed breakdown of DB Realty Ltd., a Mumbai-based real estate developer with a mixed reputation and uncertain financial fundamentals. This is a classic case of speculative interest with limited clarity on long-term sustainability.

🧾 Core Financials Overview

Return Metrics

ROCE: -1.38%, ROE: -2.38% — concerning negative returns, highlighting ineffective capital deployment

EPS: -₹2.33 — reflects earnings loss, not a good sign for intrinsic valuation

Profitability Trends

Q-o-Q PAT: ₹4.56 Cr → -₹1.54 Cr — reversal to losses, highly volatile earnings

Quarterly Profit Variation: +76.4% (YoY) — headline looks dramatic but not durable based on recent loss

Debt & Leverage

Debt-to-Equity: 0.39 — moderate leverage for real estate sector

Dividend Yield: 0.00% — no payout; unsurprising given inconsistent profits

📊 Valuation Indicators

Metric Value Commentary

P/E Ratio Not applicable Loss-making status prevents meaningful P/E ratio

P/B Ratio ~2.03 Fair to slightly elevated; pricing in future potential or asset value

PEG Ratio Not provided Cannot evaluate without consistent earnings growth

Intrinsic Value Unclear Needs a DCF approach factoring land bank, project pipeline, and regulatory clarity

🏢 Business Model & Competitive Position

Segment: Real estate — luxury and mid-income residential & commercial properties

Geography: Mostly focused on Mumbai metro region

Strengths

Established presence in high-demand zones

Holds valuable land parcels that may drive asset value

Risks

Legal entanglements and project delays

Highly cyclical and capital-intensive business

Poor ROE/ROCE indicates limited efficiency and shareholder value creation

📉 Technical & Market Sentiment

RSI: 42.3 — neutral zone; no immediate overbought or oversold signal

MACD: -1.99 — bearish crossover; trend weakness persists

DMA Trend

Current price slightly below 50-DMA (₹188), above 200-DMA (₹165)

Suggests short-term softness but medium-term support

Volume Surge: Above weekly average — points to speculative interest or profit-booking

🎯 Entry Zone & Investment Strategy

Suggested Entry: ₹165–₹175 — near 200-DMA for lower downside risk

Target Range (12–15 months): ₹215–₹230 only if project pipeline gains traction and legal risks ease

Investor Fit

Appropriate for high-risk, speculative portfolios

Not recommended for conservative investors or long-term yield seekers

If you'd like a land bank and project valuation model or a peer comparison with Oberoi Realty or Lodha, I can assemble that quickly. Let’s make the real estate numbers feel less like guesswork and more like insight 🧮🏙️

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