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Check Before You Invest : Rodium Realty Ltd

BSE: 531822 NSE: ISIN: INE513E01024
  |   Sector:  Construction & Infrastructure   |   Industry:  Construction - Real Estate

Snapshot

Q.1 Which industry/sub-sector does Rodium Realty Ltd belong to?
Rodium Realty Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Construction - Real Estate segment.
Q.2 Is Rodium Realty Ltd a good quality company?
Rodium Realty 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 Rodium Realty Ltd undervalued or overvalued?
Rodium Realty 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 7.08 -
Price to Book 2.52 1.72
Price to Sales 3.7 1.31
EV to EBITDA 12.98 57.52
Q.4 Is Rodium Realty Ltd a good buy now?
Rodium Realty 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 Rodium Realty Ltd?
Rodium Realty Ltd revenue growth is -49.3% for FY-2025, which is below its 5-year CAGR of -23.31%, indicating slower growth.

Q.2 Gross Profit margin of Rodium Realty Ltd?
Rodium Realty Ltd Gross profit margin which is the profit after deduction of direct costs, is 31.6% for FY-2025, which is above its 5-year median of 2.5%, indicating increasing margins.

Q.3 Operating Profit Margin of Rodium Realty Ltd?
Rodium Realty Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 27.91% for FY-2025, which is above its 5-year median of -6.41% indicating increasing margins.

Q.4 Net Profit Margin of Rodium Realty Ltd?
Rodium Realty Ltd Net Profit Margin is 27.7% for FY-2025, is above its 5-year median of 0.97%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 31.6 2.5
Operating Profit Margin (%) 27.91 -6.41
Net Profit Margin (%) 27.7 0.97

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Rodium Realty Ltd?
Rodium Realty Ltd Return on Asset is 2.64%, which is above its 5-year historical median of 0.18%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Rodium Realty Ltd?
Rodium Realty Ltd Return on capital employed is 7.88% for FY-2025, which is above its 5-year historical median of 2.68%. 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 Rodium Realty Ltd?
Rodium Realty Ltd Return on equity is 18.44% for FY-2025, which is above its 5-year historical median of 1.42%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Rodium Realty Ltd?
Rodium Realty Ltd Cash conversion cycle is 1770 days, above its 5-year historical median of 1655 days, indicating deteriorated 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 0.14
ROE (%) 18.44 1.42
ROCE (%) 7.88 2.68
Cash Conversion Cycle 1770 days 1655 days

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

Q.9 Debt to Equity ratio of Rodium Realty Ltd?
Rodium Realty Ltd Debt-to-Equity ratio is 3.19, 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 Rodium Realty Ltd?
Rodium Realty Ltd Debt to cash flow from operations is 6.42, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Rodium Realty Ltd?

Q.1 Promoter shareholding and pledge status of Rodium Realty Ltd?
Promoters hold 70.37% of the Rodium Realty Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Rodium Realty Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Rodium Realty Ltd vs industry peers?
Rodium Realty Ltd revenue CAGR is -23.31%, compared to the industry median CAGR of 0.00%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -49.3 0
Gross Profit Growth (%) 546.9 14.9
Operating Profit Growth (%) 0 10.4
Net Profit Growth (%) 1,363.2 17.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.1 0.1
ROE (%) 18.44 1.36
ROCE (%) 7.88 3.88
Cash Conversion Cycle (days) 1770.3 439

Valuation & price assessment

Q.1 Stock return of Rodium Realty Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 0.5% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
0.5% 21.9% 56.6% -16.3%
Q.2 Valuation ratios of Rodium Realty Ltd vs historical?
The current P/E ratio of 7.08 is higher than its historical median of , indicating that the stock is trading above 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 7.08 - 33.43
Price to Book 2.52 1.72 1.53
Price to Sales 3.7 1.31 5.23
EV to EBITDA 12.98 57.52 14.43

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