SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

Check Before You Invest : Eraaya Lifespaces Ltd

BSE: 531035 NSE: ISIN: INE432F01032
  |   Sector:  Automobiles   |   Industry:  Auto Ancillary

Snapshot

Q.1 Which industry/sub-sector does Eraaya Lifespaces Ltd belong to?
Eraaya Lifespaces Ltd belongs to the Automobiles sector, operating specifically within the Auto Ancillary segment.
Q.2 Is Eraaya Lifespaces Ltd a good quality company?
Eraaya Lifespaces Ltd is a weak quality company, based on a inconsistent 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 Eraaya Lifespaces Ltd undervalued or overvalued?
Eraaya Lifespaces 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 3-year
Historic Median
Price to Earnings - -
Price to Book 1.64 2.62
Price to Sales 53.12 18.23
EV to EBITDA -19.32 31.55
Q.4 Is Eraaya Lifespaces Ltd a good buy now?
Eraaya Lifespaces 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.

Q.1 Gross Profit margin of Eraaya Lifespaces Ltd?
Eraaya Lifespaces Ltd Gross profit margin which is the profit after deduction of direct costs, is -159.4% for FY-2025, which is below its 3-year median of 36.4%, indicating decreasing margins.

Q.2 Operating Profit Margin of Eraaya Lifespaces Ltd?
Eraaya Lifespaces Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is -59.93% for FY-2025, which is below its 3-year median of 9.88% indicating decreasing margins.

Q.3 Net Profit Margin of Eraaya Lifespaces Ltd?
Eraaya Lifespaces Ltd Net Profit Margin is -120.95% for FY-2025, is below its 3-year median of 26.8%, indicating decreasing margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) -159.4 36.4
Operating Profit Margin (%) -59.93 9.88
Net Profit Margin (%) -120.95 26.8

B: Does the business utilize capital efficiently?

Q.4 Return on Asset of Eraaya Lifespaces Ltd?
Eraaya Lifespaces Ltd Return on Asset is -3.27%, which is below its 3-year historical median of 4.87%, indicating deteriorated asset utilization efficiency.

Q.5 Return on capital employed (ROCE) of Eraaya Lifespaces Ltd?
Eraaya Lifespaces Ltd Return on capital employed is -4.73% for FY-2025, which is in line with its 3-year historical median of -4.73%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.6 Cash conversion cycle of Eraaya Lifespaces Ltd?
Eraaya Lifespaces Ltd Cash conversion cycle is 80 days, above its 3-year historical median of -140 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

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

Q.7 Debt to Equity ratio of Eraaya Lifespaces Ltd?
Eraaya Lifespaces Ltd Debt-to-Equity ratio is 3.46, which is above the industry average of 0.40, indicating higher debt levels in the industry.

Q.8 Debt to cash flow from operations of Eraaya Lifespaces Ltd?
Eraaya Lifespaces Ltd Debt to cash flow from operations is -16.45, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Eraaya Lifespaces Ltd?

Q.1 Promoter shareholding and pledge status of Eraaya Lifespaces Ltd?
Promoters hold 40.60% of the Eraaya Lifespaces Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Eraaya Lifespaces Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Eraaya Lifespaces Ltd vs industry peers?
Eraaya Lifespaces Ltd revenue CAGR is 0.00%, compared to the industry median CAGR of 9.19%, indicating slower growth and losing its market share.
Profit Metrics
Current Level 3-year
Industry Median
Revenue Growth (%) - 9.2
Gross Profit Growth (%) 0 16.1
Operating Profit Growth (%) 0 14.8
Net Profit Growth (%) 0 15.3
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) 0.03 1.24
ROE (%) - 12.74
ROCE (%) -4.73 14.28
Cash Conversion Cycle (days) 79.74 46

Valuation & price assessment

Q.1 Stock return of Eraaya Lifespaces Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 54.6% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
54.6% 113.3% 212.4% -30.8%
Q.2 Valuation ratios of Eraaya Lifespaces Ltd vs historical?
The current P/E ratio of 0 is in line with than its historical median of , indicating that the stock is trading near its historical average valuation.
Q.3 How do the current valuation ratios compare with 3-year historical median and industry numbers?
Valuation Ratios Current 3-year
Historic Median
3-year
Industry Median
Price to Earnings - - 32.97
Price to Book 1.64 2.62 3.15
Price to Sales 53.12 18.23 1.58
EV to EBITDA -19.32 31.55 13.43

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×