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Check Before You Invest : Prime Property Development Corporation Ltd

BSE: 530695 NSE: ISIN: INE233C01023
  |   Sector:  Construction & Infrastructure   |   Industry:  Construction - Real Estate

Snapshot

Q.1 Which industry/sub-sector does Prime Property Development Corporation Ltd belong to?
Prime Property Development Corporation Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Construction - Real Estate segment.
Q.2 Is Prime Property Development Corporation Ltd a good quality company?
Prime Property Development Corporation 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 Prime Property Development Corporation Ltd undervalued or overvalued?
Prime Property Development Corporation 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 3-year
Historic Median
Price to Earnings 12.15 16.30
Price to Book 0.45 0.66
Price to Sales - -
EV to EBITDA 11.13 19.18
Q.4 Is Prime Property Development Corporation Ltd a good buy now?
Prime Property Development Corporation 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 Prime Property Development Corporation Ltd?
Prime Property Development Corporation Ltd revenue growth is 0% for FY-2025, which is in line with its 3-year CAGR of NA%, indicating stable growth.

Q.2 Gross Profit margin of Prime Property Development Corporation Ltd?
Prime Property Development Corporation Ltd Gross profit margin which is the profit after deduction of direct costs, is 45.4% for FY-2025, which is below its 3-year median of 64.3%, indicating decreasing margins.

Q.3 Operating Profit Margin of Prime Property Development Corporation Ltd?
Prime Property Development Corporation Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 0% for FY-2025, which is below its 3-year median of 57.19% indicating decreasing margins.

Q.4 Net Profit Margin of Prime Property Development Corporation Ltd?
Prime Property Development Corporation Ltd Net Profit Margin is -% for FY-2025, is below its 3-year median of 43.54%, indicating decreasing margins.
Current Level 3-year
Historic Median
Gross Profit Margin (%) 45.4 64.3
Operating Profit Margin (%) - 57.19
Net Profit Margin (%) - 43.54

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Prime Property Development Corporation Ltd?
Prime Property Development Corporation Ltd Return on Asset is 2.85%, which is in line with its 3-year historical median of 2.85%, indicating stable asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Prime Property Development Corporation Ltd?
Prime Property Development Corporation Ltd Return on capital employed is 3.76% for FY-2025, which is above its 3-year historical median of 1.32%. 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 Prime Property Development Corporation Ltd?
Prime Property Development Corporation Ltd Return on equity is 2.75% for FY-2025, which is in line with its 3-year historical median of 2.75%, indicating the business is making similar use of its shareholders capital.

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

Q.8 Debt to Equity ratio of Prime Property Development Corporation Ltd?
Prime Property Development Corporation Ltd Debt-to-Equity ratio is 0.00, which is lower the industry average of 0.23, indicating lower debt levels in the industry.

Q.9 Debt to cash flow from operations of Prime Property Development Corporation Ltd?
Prime Property Development Corporation Ltd Debt to cash flow from operations is -0.05, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Prime Property Development Corporation Ltd?

Q.1 Promoter shareholding and pledge status of Prime Property Development Corporation Ltd?
Promoters hold 72.81% of the Prime Property Development Corporation Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Prime Property Development Corporation Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Prime Property Development Corporation Ltd vs industry peers?
Prime Property Development Corporation 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 3-year
Industry Median
Revenue Growth (%) - 0
Gross Profit Growth (%) 178.2 22.6
Operating Profit Growth (%) 0 20.1
Net Profit Growth (%) 361.7 23
Operating Efficiency
Current Level 3-year
Industry Median
Asset Turnover (x) - 0.12
ROE (%) 2.75 2.75
ROCE (%) 3.76 4.59
Cash Conversion Cycle (days) - 419

Valuation & price assessment

Q.1 Stock return of Prime Property Development Corporation Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 1.1% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
1.1% 19% 16.8% -41%
Q.2 Valuation ratios of Prime Property Development Corporation Ltd vs historical?
The current P/E ratio of 12.15 is lower than its historical median of 16.30, indicating that the stock is trading below 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 12.15 16.30 27.44
Price to Book 0.45 0.66 1.85
Price to Sales - - 6.39
EV to EBITDA 11.13 19.18 15.62

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