Check Before You Invest : Embassy Office Parks REIT

BSE: 542602 NSE: EMBASSY ISIN: INE041025011

| Sector: BFSI | Industry: Finance - Investment

Snapshot

Q.1 Which industry/sub-sector does Embassy Office Parks REIT belong to?

Embassy Office Parks REIT belongs to the BFSI sector, operating specifically within the Finance - Investment segment.

Q.2 Is Embassy Office Parks REIT a good quality company?

Embassy Office Parks REIT is a quality company, based on a 6-year financial track record.

Q.3 Is Embassy Office Parks REIT undervalued or overvalued?

Embassy Office Parks REIT appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Embassy Office Parks REIT a good buy now?

Embassy Office Parks REIT 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

Q.1 Total Income growth of Embassy Office Parks REIT?

Embassy Office Parks REIT Operating Income growth is 8.15% for FY-2025, which is below its 5-year CAGR of 13.48%, indicating slower growth.

Q.2 Return on Assets of Embassy Office Parks REIT?

Embassy Office Parks REIT Return on Asset is 3.4%, which is above its 5-year historical median of 2%, indicating improved earnings on assets.

	Current Level	5-year Historic Median
NPM%	39.36	28.42
PPOP%	-21.19	-14.14
RoA%	3.4	2

Q.3 Return on Equity (ROE) of Embassy Office Parks REIT?

Embassy Office Parks REIT Return on Equity is 7.1% for FY-2025, which is above its 5-year historical median of 3.4%, indicating the business is making better use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Embassy Office Parks REIT?

Embassy Office Parks REIT Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -21.19% for FY-2025, which is below its 5-year median(-14.14%), indicating decreasing margins.

Q.5 Net Profit Margin of Embassy Office Parks REIT?

Embassy Office Parks REIT Net Profit Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 39.36% for FY-2025, which is above its 5-year median( 28.42%), indicating increasing margins.

Q.6 Total Asset growth of Embassy Office Parks REIT?

Embassy Office Parks REIT Total Asset growth is 3.33% for FY-2025, which is below its 5-year CAGR of 7.88%, indicating slower growth.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Embassy Office Parks REIT?

Promoters hold % of the Embassy Office Parks REIT, with % of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 AUM Growth of Embassy Office Parks REIT vs Industry Peers?

Embassy Office Parks REIT AUM CAGR is 7.88%, compared to the 5-year industry median CAGR of 9.45%, indicating slower growth and losing its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of Embassy Office Parks REIT vs industry peers

Embassy Office Parks REIT profit metrics are in line with the industry median level of -0.88%, indicating similar profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM%	39.36	9.95
PPOP%	-21.19	-13.4
RoA%	3.4	0.8

Q.3 Operating efficiency of Embassy Office Parks REIT vs industry peers?

Embassy Office Parks REIT ROCE (4.3) is above the industry median of (1.9); while the current ROE (3.4) are above than the 5-year average Industry ROE (1.2). This shows that the business is positioned in the top quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM%	39.36	9.95
PPOP%	-21.19	-13.4
RoA%	3.4	0.8
ROCE%	3.7	1.9
ROE%	7.1	1.2

Valuation & price assessment

Q.1 Stock return of Embassy Office Parks REIT over the last decade?

Over the last 5 years, the stock has delivered a CAGR of 5.71% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	5.7%	9.8%	11.8%

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	-	-	33.72
Price to Book	-	-	0.94
Price to Sales	-	-	12.44
EV to EBITDA	7.88	5.18	9.97

Q.4 Valuation ratios of Embassy Office Parks REITvs historical and industry averages?

The current Price to book ratio (P/B) 0% is similar than its historical median of %, indicating that at the current price the stock is fairly valued. However, you need a deeper analysis to make a better judgement.

Strategic outlook

Q.1 Does its ROIC exceed its WACC?

Embassy Office Parks REIT return on invested capital (ROIC) is 6.18% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

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