DBREALTY - Investment Analysis: Buy Signal or Bull Trap?
Back to ListInvestment Rating: 1.6
| Stock Code | DBREALTY | Market Cap | 6,919 Cr. | Current Price | 128 ₹ | 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 | 144 ₹ | Chg in FII Hold | -0.18 % |
| Chg in DII Hold | -0.07 % | PAT Qtr | 55.2 Cr. | PAT Prev Qtr | -6.21 Cr. | RSI | 66.2 |
| MACD | -1.78 | Volume | 1,54,74,540 | Avg Vol 1Wk | 49,04,339 | Low price | 95.5 ₹ |
| High price | 219 ₹ | Debt to equity | 0.03 | 52w Index | 26.0 % | Qtr Profit Var | 162 % |
| EPS | -0.59 ₹ | Industry PE | 31.0 |
📊 Analysis: DB Realty shows weak fundamentals with negative ROE (-3.29%) and ROCE (-2.92%), indicating poor capital efficiency. EPS is negative (-₹0.59), and dividend yield is 0%, offering no income support. Although the latest quarter shows profit (₹55.2 Cr) compared to a loss in the previous quarter, sustainability remains uncertain. The absence of a valid P/E ratio highlights inconsistent earnings. Technicals show RSI at 66.2 (overbought) and MACD negative (-1.78), suggesting caution. Debt-to-equity is low (0.03), but fundamentals do not justify long-term holding.
💰 Entry Price Zone: Only speculative entry possible near ₹95 – ₹105, close to 52-week low, for short-term trading. Not suitable for long-term accumulation due to weak fundamentals.
⏳ Exit / Holding Strategy: If already holding, consider exiting on rallies near ₹140 – ₹150 (DMA200 zone). Long-term holding is not advisable unless consistent profitability and ROE/ROCE improvement are demonstrated.
Positive
- 📈 Recent quarterly profit (₹55.2 Cr) vs prior loss.
- 🏦 Very low debt-to-equity (0.03), reducing financial risk.
- 💡 High trading volumes indicate liquidity for entry/exit.
Limitation
- ⚠️ Negative ROE (-3.29%) and ROCE (-2.92%).
- 📉 EPS negative (-₹0.59), no earnings consistency.
- 🚫 No dividend yield (0%), limiting investor returns.
- 🔻 Overvaluation risk with industry PE at 31.0 but no valid P/E for DB Realty.
Company Negative News
- 📉 Sequential volatility in profits, lack of stable earnings.
- 🚫 FII (-0.18%) and DII (-0.07%) reduced holdings, showing reduced institutional confidence.
Company Positive News
- ✅ Quarterly turnaround from loss (-₹6.21 Cr) to profit (₹55.2 Cr).
- 💡 Strong liquidity with high trading volumes.
Industry
- 🏭 Real estate industry PE ~31.0, but DB Realty lacks consistent earnings to justify valuation.
- 🌍 Sector growth depends on urban development and regulatory clarity, but company fundamentals lag peers.
Conclusion
DB Realty is not a strong candidate for long-term investment due to negative ROE/ROCE, inconsistent earnings, and lack of dividend support. Only speculative traders may consider entry near ₹95–₹105 for short-term gains. Existing holders should exit near ₹140–₹150 unless profitability stabilizes. Long-term investors should avoid until fundamentals improve significantly.
Selva, since you’re systematically benchmarking, would you like me to prepare a peer overlay comparison (DB Realty vs Oberoi Realty, DLF, Godrej Properties, etc.) so you can see relative valuations and growth metrics for sector rotation?