Check Before You Invest : Embassy Developments Ltd

Snapshot

Q.1 Which industry/sub-sector does Embassy Developments Ltd belong to?

Embassy Developments Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Construction - Real Estate segment.

Q.2 Is Embassy Developments Ltd a good quality company?

Embassy Developments Ltd is a weak quality company, based on a inconsistent 9-year financial track record.

Q.3 Is Embassy Developments Ltd undervalued or overvalued?

Embassy Developments Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Embassy Developments Ltd a good buy now?

Embassy Developments 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

Q.1 Revenue growth of Embassy Developments Ltd?

Embassy Developments Ltd revenue growth is 4,933% for FY-2025, which is below its 5-year CAGR of 42.24%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Embassy Developments Ltd?

Embassy Developments Ltd Return on capital employed is 4.16% for FY-2025, which is above its 5-year historical median of -0.13%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 13.5%, indicating value preservation.

Q.3 Return on Asset of Embassy Developments Ltd?

Embassy Developments Ltd Return on Asset is 2.69%, which is above its 5-year historical median of -1.78%, indicating improved asset utilization efficiency.

Q.4 Return on Equity (ROE) of Embassy Developments Ltd?

Embassy Developments Ltd Return on equity is 4.11% for FY-2025, which is above its 5-year historical median of -2.19%, indicating the business is making better use of its shareholders capital.

Q.5 Gross Profit margin of Embassy Developments Ltd?

Embassy Developments Ltd Gross profit margin which is the profit after deduction of direct costs, is 4.5% for FY-2025, which is in line with its 5-year median of 4.5%, indicating stable margins.

Q.6 Operating Profit Margin of Embassy Developments Ltd?

Embassy Developments Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.52% for FY-2025, which is above its 5-year median of -28.95% indicating increasing margins.

Q.7 Net Profit Margin of Embassy Developments Ltd?

Embassy Developments Ltd Net Profit Margin is 12.51% for FY-2025, is above with its 5-year median of -2341.1%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	4.5	4.5
Operating Profit Margin	14.52	-28.95
Net Profit Margin	12.51	-2341.1

Q.8 Debt to Equity ratio of Embassy Developments Ltd?

Embassy Developments Ltd Debt-to-Equity ratio is 0.27, which is lower with the industry average of 0.31, indicating lower debt levels in the industry.

Q.9 Debt to cash flow from operations of Embassy Developments Ltd?

Embassy Developments Ltd Debt to cash flow from operations is 4.45, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Embassy Developments Ltd?

Promoters hold 42.65% of the Embassy Developments Ltd, with 68.24% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Embassy Developments Ltd vs industry peers?

Embassy Developments Ltd revenue CAGR is 42.24%, compared to the industry median CAGR of 4.37%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	4	4.4
Gross Profit Growth	1,780	NAN
Operating Profit Growth	0	NAN
Net Profit Growth	0	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.22	0.14
ROE	4.11	1.52
ROCE	4.16	4.04
Cash Conversion Cycle (days)	10.53	625

Valuation & price assessment

Q.1 Stock return of Embassy Developments Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of -3.8% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-3.8%	-9%	-10.9%	-50.2%

Q.3 Valuation ratios of Embassy Developments Ltd vs historical?

The current P/E is lower that its historical median.

Q.4 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	-	63.77	34.05
Price to Book	0.6	0.82	1.53
Price to Sales	7.35	834.75	5.34
EV to EBITDA	279.5	246.64	14.40

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