D B Realty Limited operates as a real estate development company in India. It develops residential projects, including condominiums and duplexes; commercial, retail, and other projects, such as mass housing and cluster redevelopment; and hospitality projects. The company was incorporated in 2007 and is based in Mumbai, India.

India

D B Realty Limited

Real Estate

The company does not pay dividends at all, or it pays them sporadically. There have only been a few years with dividend payments in the past ten years. 

DBREALTY.NS reported revenue of INR 6 322mn in the last 12 months, up 133% from FY23. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. 

Over the last six months, the stock performance has varied, with an increase following a drop. The stock's price trend wasn't definitive when matched against its global counterparts from the same sector and industry (as depicted above). Over the past six months the stock has exceeded the performance of this peer group by 23ppts and its growth decelerated by 7ppts in the past month. This is equally valid for peers from the same country and industry. Given the stock's valuation versus its peers, its total price movement is favourable. This generally signifies that a stock is fairly valued or marginally undervalued abd is becoming more 'expensive', suggesting a short-term spike in confidence by the market at large.

Historically, DBREALTY.NS has reported very poor net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled -20.5%, down from 469.2% in FY23. 

D B Realty Limited reported a return on equity (RoE) of -2.9% in the last 12 months, down from 40.6% in FY23. 

In the last 12 months, the return on capital employed (RoCE) declined to -2.0%, below the peers. 

Another important profitability metric, return on assets (RoA), amounted to -1.5% in the last 12 months, a decrease from 15.4% in FY23. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been 2.1 in the past several years. This ratio implies a strong shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are close to minimal. In combination with rigorous business standards, shareholder rights are well protected.

DBREALTY.NS has average trading liquidity. The average private investor can sell his common position in the stock almost immediately. Liquidity is usually stable and becomes extremely unfavourable on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. 

No other major risks have been identified.

The risk of default is moderate. We note resilient historical revenue growth, robust profitability, strong debt servicing capacity, and an favourable capital structure, among the positive credit factors. Among the negative credit factors, we point to weak positions in its industry, negligible return on capital, and excessive margin volatility.

In highly turbulent market conditions, DBREALTY.NS is as volatile as an index. In other words, the stock will move with the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be limited. 

In normal market circumstances, DBREALTY.NS is moderately volatile. Put differently, without outstanding market volatility or shocking company news, the stock's price will move slightly wider than the index. The stock's losses on its worst days (less than 1-5% of the time) will range from limited to average. We would also like to highlight the average intraday volatility of the instrument. 

Considering past and projected metrics, the stock is distinctly 'expensive' compared to its peers. In particular, the stock is overvalued on P/FCF. 

D B Realty Limited

₹ 183.2

3

D B Realty Limited

₹ 183.2

3

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

₹ 183.2

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