⚠ 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: 2.4
| Stock Code | DBREALTY | Market Cap | 5,431 Cr. | Current Price | 101 ₹ | High / Low | 219 ₹ |
| Book Value | 84.8 ₹ | Dividend Yield | 0.00 % | ROCE | -2.92 % | ROE | -3.29 % |
| Face Value | 10.0 ₹ | DMA 50 | 118 ₹ | DMA 200 | 145 ₹ | Chg in FII Hold | -0.18 % |
| Chg in DII Hold | -0.07 % | PAT Qtr | 55.2 Cr. | PAT Prev Qtr | -6.21 Cr. | RSI | 37.2 |
| MACD | -4.98 | Volume | 13,37,833 | Avg Vol 1Wk | 27,80,886 | Low price | 95.5 ₹ |
| High price | 219 ₹ | Debt to equity | 0.03 | 52w Index | 4.23 % | Qtr Profit Var | 162 % |
| EPS | -0.59 ₹ | Industry PE | 32.6 |
📊 Core Financials
- Revenue & Profitability: Quarterly PAT improved sharply from -6.21 Cr. to 55.2 Cr., but EPS remains negative (-0.59 ₹), reflecting weak profitability.
- Margins & Returns: ROCE (-2.92%) and ROE (-3.29%) are negative, indicating poor efficiency and capital returns.
- Debt Ratios: Debt-to-equity at 0.03 shows low leverage, but weak returns limit financial strength.
- Cash Flows: Profit volatility raises concerns about sustainability of cash flows.
💹 Valuation Indicators
- P/E Ratio: Not meaningful due to negative EPS.
- P/B Ratio: Current Price / Book Value ≈ 1.19 → near fair value.
- PEG Ratio: Not available, limiting growth-adjusted valuation analysis.
- Intrinsic Value: Current price (101 ₹) reflects uncertainty; valuation is not compelling given weak fundamentals.
🏢 Business Model & Competitive Advantage
- Operates in real estate development, a cyclical and capital-intensive industry.
- Low debt provides some resilience, but profitability challenges weaken competitive positioning.
- High volatility in earnings undermines long-term stability.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Potential accumulation only near 95 ₹ – 100 ₹, close to recent lows, for speculative investors.
- Long-Term Holding: Risky due to negative returns and inconsistent profitability; suitable only for high-risk investors with long horizons.
✅ Positive
- Quarterly PAT turnaround from losses to profit (55.2 Cr.).
- Low debt-to-equity ratio (0.03) ensures limited leverage risk.
- Stock trading near book value, limiting downside valuation risk.
⚠️ Limitation
- Negative ROE and ROCE highlight poor efficiency.
- EPS remains negative, limiting valuation metrics.
- High earnings volatility raises sustainability concerns.
📉 Company Negative News
- Stock trading below both 50 DMA (118 ₹) and 200 DMA (145 ₹), indicating weak momentum.
- RSI at 37.2 and negative MACD (-4.98) suggest bearish technical outlook.
- Decline in both FII (-0.18%) and DII (-0.07%) holdings shows reduced institutional confidence.
📈 Company Positive News
- Quarterly profit variation of 162% indicates sharp recovery from prior losses.
- High trading volumes reflect investor interest despite volatility.
🏭 Industry
- Industry P/E at 32.6 highlights profitability among peers, but DBREALTY lags due to negative EPS.
- Real estate sector remains cyclical, sensitive to interest rates and economic conditions.
- Peers with stronger fundamentals command higher valuations.
🔎 Conclusion
DBREALTY shows signs of recovery with a sharp profit turnaround, but negative returns (ROE, ROCE) and weak fundamentals limit long-term attractiveness. Entry is only advisable near 95 ₹ – 100 ₹ for speculative investors willing to accept high risk. For conservative investors, stronger peers in the real estate sector may offer better stability and growth potential.
Would you like me to also compare DBREALTY’s fundamentals with top-performing real estate peers to highlight relative strengths and weaknesses?