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Check Before You Invest : Marathon Nextgen Realty Ltd

BSE: 503101 NSE: MARATHON ISIN: INE182D01020
  |   Sector:  Construction & Infrastructure   |   Industry:  Construction - Real Estate

Snapshot

Q.1 Which industry/sub-sector does Marathon Nextgen Realty Ltd belong to?
Marathon Nextgen Realty Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Construction - Real Estate segment.
Q.2 Is Marathon Nextgen Realty Ltd a good quality company?
Marathon Nextgen 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 Marathon Nextgen Realty Ltd undervalued or overvalued?
Marathon Nextgen Realty Ltd appears Overvalued, as its key valuation ratios are higher than 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 23.24 27.12
Price to Book 1.64 1.79
Price to Sales 18.92 7.96
EV to EBITDA 16 14.51
Q.4 Is Marathon Nextgen Realty Ltd a good buy now?
Marathon Nextgen Realty Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. 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 Marathon Nextgen Realty Ltd?
Marathon Nextgen Realty Ltd revenue growth is -29.8% for FY-2025, which is below its 5-year CAGR of 24.38%, indicating slower growth.

Q.2 Gross Profit margin of Marathon Nextgen Realty Ltd?
Marathon Nextgen Realty Ltd Gross profit margin which is the profit after deduction of direct costs, is 67.6% for FY-2025, which is above its 5-year median of 49.3%, indicating increasing margins.

Q.3 Operating Profit Margin of Marathon Nextgen Realty Ltd?
Marathon Nextgen Realty Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 38.52% for FY-2025, which is below its 5-year median of 43.62% indicating decreasing margins.

Q.4 Net Profit Margin of Marathon Nextgen Realty Ltd?
Marathon Nextgen Realty Ltd Net Profit Margin is 56.11% for FY-2025, is above its 5-year median of 39.32%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 67.6 49.3
Operating Profit Margin (%) 38.52 43.62
Net Profit Margin (%) 56.11 39.32

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Marathon Nextgen Realty Ltd?
Marathon Nextgen Realty Ltd Return on Asset is 9.45%, which is above its 5-year historical median of 7.24%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Marathon Nextgen Realty Ltd?
Marathon Nextgen Realty Ltd Return on capital employed is 15.07% for FY-2025, which is in line with its 5-year historical median of 15.07%. 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 Marathon Nextgen Realty Ltd?
Marathon Nextgen Realty Ltd Return on equity is 13.29% for FY-2025, which is in line with its 5-year historical median of 13.29%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Marathon Nextgen Realty Ltd?
Marathon Nextgen Realty Ltd Cash conversion cycle is 323 days, in line with its 5-year historical median of 323 days, indicating stable working capital management. However, you need to compare this with its peers in the industry.
Current Level 5-year
Historic Median
Asset Turnover (x) 0.17 0.17
ROE (%) 13.29 13.29
ROCE (%) 15.07 15.07
Cash Conversion Cycle 323 days 323 days

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

Q.9 Debt to Equity ratio of Marathon Nextgen Realty Ltd?
Marathon Nextgen Realty Ltd Debt-to-Equity ratio is 0.24, 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 Marathon Nextgen Realty Ltd?
Marathon Nextgen Realty Ltd Debt to cash flow from operations is 18.05, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Marathon Nextgen Realty Ltd?

Q.1 Promoter shareholding and pledge status of Marathon Nextgen Realty Ltd?
Promoters hold 56.37% of the Marathon Nextgen Realty Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

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

Q.1 Revenue growth of Marathon Nextgen Realty Ltd vs industry peers?
Marathon Nextgen Realty Ltd revenue CAGR is 24.38%, compared to the industry median CAGR of 0.00%, indicating faster growth and gaining its market share.
Profit Metrics
Current Level 5-year
Industry Median
Revenue Growth (%) -29.8 0
Gross Profit Growth (%) -3.5 14.9
Operating Profit Growth (%) -46.9 10.4
Net Profit Growth (%) - 17.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.17 0.1
ROE (%) 13.29 1.36
ROCE (%) 15.07 3.88
Cash Conversion Cycle (days) 323.14 439

Valuation & price assessment

Q.1 Stock return of Marathon Nextgen Realty Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 19.8% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
19.8% 59.9% 21.8% 5.5%
Q.2 Valuation ratios of Marathon Nextgen Realty Ltd vs historical?
The current P/E ratio of 23.24 is lower than its historical median of 27.12, 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 23.24 27.12 33.43
Price to Book 1.64 1.79 1.53
Price to Sales 18.92 7.96 5.23
EV to EBITDA 16 14.51 14.43

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