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Check Before You Invest : Real Eco-Energy Ltd

BSE: 530053 NSE: ISIN: INE055E01034
  |   Sector:  Construction & Infrastructure   |   Industry:  Construction - Real Estate

Snapshot

Q.1 Which industry/sub-sector does Real Eco-Energy Ltd belong to?
Real Eco-Energy Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Construction - Real Estate segment.
Q.2 Is Real Eco-Energy Ltd a good quality company?
Real Eco-Energy 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 Real Eco-Energy Ltd undervalued or overvalued?
Real Eco-Energy 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 34.56 -
Price to Book 6.36 9.96
Price to Sales 9.44 7.90
EV to EBITDA 37.69 93.69
Q.4 Is Real Eco-Energy Ltd a good buy now?
Real Eco-Energy 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 Real Eco-Energy Ltd?
Real Eco-Energy Ltd revenue growth is 980.7% for FY-2025, which is above its 5-year CAGR of NA%, indicating faster growth.

Q.2 Gross Profit margin of Real Eco-Energy Ltd?
Real Eco-Energy Ltd Gross profit margin which is the profit after deduction of direct costs, is 21.7% for FY-2025, which is above its 5-year median of 18.8%, indicating increasing margins.

Q.3 Operating Profit Margin of Real Eco-Energy Ltd?
Real Eco-Energy Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 21.7% for FY-2025, which is above its 5-year median of 0.36% indicating increasing margins.

Q.4 Net Profit Margin of Real Eco-Energy Ltd?
Real Eco-Energy Ltd Net Profit Margin is 21.43% for FY-2025, is above its 5-year median of 0.23%, indicating increasing margins.
Current Level 5-year
Historic Median
Gross Profit Margin (%) 21.7 18.8
Operating Profit Margin (%) 21.7 0.36
Net Profit Margin (%) 21.43 0.23

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of Real Eco-Energy Ltd?
Real Eco-Energy Ltd Return on Asset is 5.96%, which is above its 5-year historical median of 1.3%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of Real Eco-Energy Ltd?
Real Eco-Energy Ltd Return on capital employed is 6.64% for FY-2025, which is above its 5-year historical median of 0.2%. 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 Real Eco-Energy Ltd?
Real Eco-Energy Ltd Return on equity is 11.83% for FY-2025, which is above its 5-year historical median of 3.28%, indicating the business is making better 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 Real Eco-Energy Ltd?
Real Eco-Energy Ltd Debt-to-Equity ratio is 0.76, which is above the industry average of 0.23, indicating higher debt levels in the industry.

Q.9 Debt to cash flow from operations of Real Eco-Energy Ltd?
Real Eco-Energy Ltd Debt to cash flow from operations is 7.89, which is at a unhealthy level.

Ownership & governance

D: Promoter shareholding and pledge status of Real Eco-Energy Ltd?

Q.1 Promoter shareholding and pledge status of Real Eco-Energy Ltd?
Promoters hold 25.25% of the Real Eco-Energy Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Real Eco-Energy Ltd performance compare with that of its Peers?

Q.1 Revenue growth of Real Eco-Energy Ltd vs industry peers?
Real Eco-Energy 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 (%) 980.7 0
Gross Profit Growth (%) 265 14.9
Operating Profit Growth (%) 0 10.4
Net Profit Growth (%) 279 17.2
Operating Efficiency
Current Level 5-year
Industry Median
Asset Turnover (x) 0.28 0.1
ROE (%) 11.83 1.36
ROCE (%) 6.64 3.88
Cash Conversion Cycle (days) 765.43 439

Valuation & price assessment

Q.1 Stock return of Real Eco-Energy Ltd over the last decade?
Over the last 9 year(s), the stock has delivered a CAGR of 11.2% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR
11.2% 40.2% -10.9% -31.3%
Q.2 Valuation ratios of Real Eco-Energy Ltd vs historical?
The current P/E ratio of 34.56 is higher than its historical median of , indicating that the stock is trading above 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 34.56 - 33.43
Price to Book 6.36 9.96 1.53
Price to Sales 9.44 7.90 5.23
EV to EBITDA 37.69 93.69 14.43

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