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Check Before You Invest : Citadel Realty & Developers Ltd

BSE: 502445 NSE: ISIN: INE906D01014
  |   Sector:  Construction & Infrastructure   |   Industry:  Construction - Real Estate

Snapshot

Q.1 Which industry/sub-sector does Citadel Realty & Developers Ltd belong to?
Citadel Realty & Developers Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Construction - Real Estate segment.
Q.2 Is Citadel Realty & Developers Ltd a good quality company?
Citadel Realty & Developers Ltd is a quality company, based on a multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Citadel Realty & Developers Ltd undervalued or overvalued?
Citadel Realty & Developers Ltd appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 28.05 29.19
Price to Book 1.91 1.84
Price to Sales 10.08 7.45
EV to EBITDA 15.74 14.15
Q.4 Is Citadel Realty & Developers Ltd a good buy now?
Citadel Realty & Developers Ltd is not a good buy now, based on weak price trend analysis suggesting prices may fall. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.

  • How efficiently has it utilized Capital?

    By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.

  • How is it managing its Debt?

    By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of Citadel Realty & Developers Ltd?
Citadel Realty & Developers Ltd revenue growth is 11.7% for FY-2025, which is in line with its 5-year CAGR of 11.54%, indicating stable growth.

Q.2 Gross Profit margin of Citadel Realty & Developers Ltd?
Citadel Realty & Developers Ltd Gross profit margin which is the profit after deduction of direct costs, is 44.5% for FY-2025, which is in line with its 5-year median of 44.5%, indicating stable margins.

Q.3 Operating Profit Margin of Citadel Realty & Developers Ltd?
Citadel Realty & Developers Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 89.1% for FY-2025, which is in line with its 5-year median of 90.25% indicating stable margins.

Q.4 Net Profit Margin of Citadel Realty & Developers Ltd?
Citadel Realty & Developers Ltd Net Profit Margin is 32.94% for FY-2025, is in line with its 5-year median of 32.94%, indicating stable margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 44.5 44.5
Operating Profit Margin (%) 89.1 90.25
Net Profit Margin (%) 32.94 32.94

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Citadel Realty & Developers Ltd?
Citadel Realty & Developers Ltd Return on Asset is 3.34%, which is in line with its 5-year historical median of 3.34%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Citadel Realty & Developers Ltd?
Citadel Realty & Developers Ltd Return on capital employed is 10.68% for FY-2025, which is above its 5-year historical median of 9.73%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.7 Return on Equity (ROE) of Citadel Realty & Developers Ltd?
Citadel Realty & Developers Ltd Return on equity is 8.56% for FY-2025, which is in line with its 5-year historical median of 8.56%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Citadel Realty & Developers Ltd?
Citadel Realty & Developers Ltd Cash conversion cycle is 278 days, below its 5-year historical median of 349 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.1 0.1
ROE (%) 8.56 8.56
ROCE (%) 10.68 9.73
Cash Conversion Cycle 278 days 349 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of Citadel Realty & Developers Ltd?
Citadel Realty & Developers Ltd Debt-to-Equity ratio is 1.00, which is above the industry average of 0.23, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Citadel Realty & Developers Ltd?
Citadel Realty & Developers Ltd Debt to cash flow from operations is -26.2, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Citadel Realty & Developers Ltd?

Q.1 Promoter shareholding and pledge status of Citadel Realty & Developers Ltd?
Promoters hold 66.68% of the Citadel Realty & Developers Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Citadel Realty & Developers Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Citadel Realty & Developers Ltd vs industry peers?
Citadel Realty & Developers Ltd revenue CAGR is 11.54%, compared to the industry median CAGR of 0.00%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 11.7 0
Gross Profit Growth (%) 2.6 14.9
Operating Profit Growth (%) 8.6 10.4
Net Profit Growth (%) 2.6 17.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.1 0.1
ROE (%) 8.56 1.36
ROCE (%) 10.68 3.88
Cash Conversion Cycle (days) 278.44 439

Valuation & price assessment

Q.1 Stock return of Citadel Realty & Developers Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 13.8% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
13.8% 39.7% 31.3% -11.9%
Q.2 Valuation ratios of Citadel Realty & Developers Ltd vs historical?
The current P/E ratio of 28.05 is in line with than its historical median of 29.19, indicating that the stock is trading near its historical average valuation.
Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median
5-year
Industry Median
Price to Earnings 28.05 29.19 33.43
Price to Book 1.91 1.84 1.53
Price to Sales 10.08 7.45 5.23
EV to EBITDA 15.74 14.15 14.43

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