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Check Before You Invest : Shradha Realty Ltd

BSE: 0 NSE: SHRADHA ISIN: INE715Y01031
  |   Sector:  Construction & Infrastructure   |   Industry:  Construction - Real Estate

Snapshot

Q.1 Which industry/sub-sector does Shradha Realty Ltd belong to?
Shradha Realty Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Construction - Real Estate segment.
Q.2 Is Shradha Realty Ltd a good quality company?
Shradha Realty Ltd is a average quality company, based on a somewhat consistent 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 Shradha Realty Ltd undervalued or overvalued?
Shradha 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 21.06 29.55
Price to Book 3.21 2.22
Price to Sales 19.55 25.69
EV to EBITDA 16.09 24.56
Q.4 Is Shradha Realty Ltd a good buy now?
Shradha Realty Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. 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 Shradha Realty Ltd?
Shradha Realty Ltd revenue growth is 25.5% for FY-2025, which is above its 5-year CAGR of NA%, indicating faster growth.

Q.2 Gross Profit margin of Shradha Realty Ltd?
Shradha Realty Ltd Gross profit margin which is the profit after deduction of direct costs, is 84.1% for FY-2025, which is below its 5-year median of 210.6%, indicating decreasing margins.

Q.3 Operating Profit Margin of Shradha Realty Ltd?
Shradha Realty Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 51.38% for FY-2025, which is above its 5-year median of -72.66% indicating increasing margins.

Q.4 Net Profit Margin of Shradha Realty Ltd?
Shradha Realty Ltd Net Profit Margin is 59.13% for FY-2025, is below its 5-year median of 168.27%, indicating decreasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 84.1 210.6
Operating Profit Margin (%) 51.38 -72.66
Net Profit Margin (%) 59.13 168.27

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Shradha Realty Ltd?
Shradha Realty Ltd Return on Asset is 11.63%, which is in line with its 5-year historical median of 11.23%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Shradha Realty Ltd?
Shradha Realty Ltd Return on capital employed is 17.99% for FY-2025, which is above its 5-year historical median of 14.32%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 14%, indicating value creation.

Q.7 Return on Equity (ROE) of Shradha Realty Ltd?
Shradha Realty Ltd Return on equity is 13.48% for FY-2025, which is above its 5-year historical median of 12.19%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of Shradha Realty Ltd?
Shradha Realty Ltd Cash conversion cycle is 499 days, below its 5-year historical median of 3250 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) 0.2 0.03
ROE (%) 13.48 12.19
ROCE (%) 17.99 14.32
Cash Conversion Cycle 499 days 3250 days

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

Q.9 Debt to Equity ratio of Shradha Realty Ltd?
Shradha Realty Ltd Debt-to-Equity ratio is 0.06, which is lower the industry average of 0.23, indicating lower debt levels in the industry.

Q.10 Debt to cash flow from operations of Shradha Realty Ltd?
Shradha Realty Ltd Debt to cash flow from operations is -0.93, which is at a unhealthy level.

Ownership & governance

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

Q.1 Promoter shareholding and pledge status of Shradha Realty Ltd?
Promoters hold 74.97% of the Shradha Realty Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of Shradha Realty Ltd vs industry peers?
Shradha Realty Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 0.00%, indicating stable growth and maintaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) 25.5 0
Gross Profit Growth (%) 27.3 14.9
Operating Profit Growth (%) 100 10.4
Net Profit Growth (%) 11.1 17.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.2 0.1
ROE (%) 13.48 1.36
ROCE (%) 17.99 3.88
Cash Conversion Cycle (days) 499.21 439

Valuation & price assessment

Q.1 Stock return of Shradha Realty Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of -4.61% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
- -4.6% -7.8% -40.7%
Q.2 Valuation ratios of Shradha Realty Ltd vs historical?
The current P/E ratio of 21.06 is lower than its historical median of 29.55, indicating that the stock is trading below 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 21.06 29.55 33.43
Price to Book 3.21 2.22 1.53
Price to Sales 19.55 25.69 5.23
EV to EBITDA 16.09 24.56 14.43

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