Check Before You Invest : Poddar Housing and Development Ltd

Snapshot

Q.1 Which industry/sub-sector does Poddar Housing and Development Ltd belong to?

Poddar Housing and Development Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Construction - Real Estate segment.

Q.2 Is Poddar Housing and Development Ltd a good quality company?

Poddar Housing and Development Ltd is a quality company, based on a 10-year financial track record.

Q.3 Is Poddar Housing and Development Ltd undervalued or overvalued?

Poddar Housing and Development Ltd appears Somewhat Undervalued, as its key valuation ratios are below with their past averages.

Q.4 Is Poddar Housing and Development Ltd a good buy now?

Poddar Housing and Development 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 Poddar Housing and Development Ltd?

Poddar Housing and Development Ltd revenue growth is 121% for FY-2024, which is above its 5-year CAGR of 4.56%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of Poddar Housing and Development Ltd?

Poddar Housing and Development Ltd Return on capital employed is 4.39% for FY-2024, which is in line with its 5-year historical median of 4.39%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 14%, indicating value preservation.

Q.3 Return on Asset of Poddar Housing and Development Ltd?

Poddar Housing and Development Ltd Return on Asset is -6.18%, which is below its 5-year historical median of -2.85%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Poddar Housing and Development Ltd?

Poddar Housing and Development Ltd Return on equity is -41.37% for FY-2024, which is below its 5-year historical median of -8.88%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Poddar Housing and Development Ltd?

Poddar Housing and Development Ltd Cash conversion cycle is 2819 days, in line with its 5-year historical median of 2819 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	0.08	0.1
ROE	-41.37	-8.88
ROCE	4.39	4.39
Cash Conversion Cycle	2819 days	2819 days

Q.6 Gross Profit margin of Poddar Housing and Development Ltd?

Poddar Housing and Development Ltd Gross profit margin which is the profit after deduction of direct costs, is -97% for FY-2024, which is below its 5-year median of -37.3%, indicating decreasing margins.

Q.7 Operating Profit Margin of Poddar Housing and Development Ltd?

Poddar Housing and Development Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 32.24% for FY-2024, which is in line with its 5-year median of 32.24% indicating stable margins.

Q.8 Net Profit Margin of Poddar Housing and Development Ltd?

Poddar Housing and Development Ltd Net Profit Margin is -73.04% for FY-2024, is below with its 5-year median of -28.94%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	-97	-37.3
Operating Profit Margin	32.24	32.24
Net Profit Margin	-73.04	-28.94

Q.9 Debt to Equity ratio of Poddar Housing and Development Ltd?

Poddar Housing and Development Ltd Debt-to-Equity ratio is 3.93, which is above with the industry average of 0.31, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Poddar Housing and Development Ltd?

Poddar Housing and Development Ltd Debt to cash flow from operations is 5, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Poddar Housing and Development Ltd?

Promoters hold 53.03% of the Poddar Housing and Development Ltd, with 70.63% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Poddar Housing and Development Ltd vs industry peers?

Poddar Housing and Development Ltd revenue CAGR is 4.56%, 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	121	4.4
Gross Profit Growth	0	NAN
Operating Profit Growth	181.5	NAN
Net Profit Growth	0	NAN

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.08	0.14
ROE	-41.37	1.52
ROCE	4.39	4.04
Cash Conversion Cycle (days)	2819.24	625

Valuation & price assessment

Q.1 Stock return of Poddar Housing and Development Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of -27.2% based on the current price.

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

	9Y	5Y	3Y	1Y
Share Price CAGR	-27.2%	-21.4%	-23.8%	36.7%

Q.3 Valuation ratios of Poddar Housing and Development 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	-	38.83	34.05
Price to Book	0.41	0.63	1.53
Price to Sales	0.62	2.09	5.34
EV to EBITDA	18.07	-40.29	14.40

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