DBREALTY - Investment Analysis

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

Investment Rating: 1.4

🏗️ Fundamental Analysis of DB Realty Ltd (DBREALTY)

✅ Positives

Institutional Interest

FII Hold ↑ 0.78%

DII Hold ↑ 0.12% — marginal but positive sentiment

Technical Setup

Price above DMA 200 (₹165) — long-term trend intact

RSI: 42.3 — neutral zone, not overbought

Volume above 1-week average — active trading

Valuation Comfort

Book Value: ₹90.9 vs Price: ₹185 — ~2x book, not excessive

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

⚠️ Major Concerns

Negative Profitability

ROCE: -1.38%

ROE: -2.38% — both indicate capital destruction

EPS: -₹2.33 — loss-making, unsustainable for long-term compounding

PAT Qtr: -₹1.54 Cr vs ₹4.56 Cr — sharp reversal

No Valuation Metrics

P/E: Not available due to negative earnings

PEG Ratio: Not meaningful — no reliable growth estimate

Dividend Yield: 0.00% — no income generation

Volatility Risk

52w Index: 71.4% — high price fluctuation

MACD: -1.99 — bearish momentum

📉 Ideal Entry Price Zone

Entry Zone: Not recommended

Given negative ROE/ROCE and inconsistent earnings, this stock is not suitable for long-term investment at any price

🧭 Long-Term Investment Outlook

DB Realty is not a viable long-term candidate. Despite some institutional interest and technical support, the lack of profitability, negative return metrics, and absence of valuation clarity make it highly speculative.

Holding Period: Avoid for long-term portfolio

Only suitable for short-term traders with high risk appetite

Reassess only if ROE turns positive and earnings stabilize for 4+ quarters

🚪 Exit Strategy (If Already Holding)

Partial Exit Zone: ₹200–₹210

Near recent highs and psychological resistance

Full Exit

If ROE remains negative for 2+ quarters

If price breaks below ₹160 and fails to recover

If earnings continue to show volatility and losses

Reinvest: Only if ROE turns positive and EPS becomes consistently positive

Would you like a comparison with more stable real estate players like Oberoi Realty, Prestige Estates, or Godrej Properties for long-term investment alternatives?

Edit in a page