📌 At a Glance
Dhanuka Realty Ltd is a Jaipur-based microcap real estate company with a rollercoaster financial history. After a near-zero revenue patch, FY25 finally saw a spark: ₹3.13 Cr in sales and ₹0.89 Cr in net profit. But with 333 debtor days, bizarre cash flows, and promoter stake dilution, is this rally real—or a real estate illusion?
1. 🏠 WTF Do They Even Do?
- Engaged in real estate development—residential flats, apartments, townships
- Operates under Dhanuka Group, with past CREDAI, IGBC, CII affiliations
- Also acts as contractor/sub-contractor for infra projects
- Has flirted with zero revenue for multiple years (FY19-FY21)
So, basically… they build houses. Sometimes.
2. 📈 Financials — The Resurrection Arc?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue (₹ Cr) | 2.21 | 1.46 | 3.13 |
| Net Profit (₹ Cr) | -1.51 | -0.12 | 0.89 |
| EPS (₹) | -1.95 | -0.16 | 1.15 |
| OPM (%) | -42.9% | -20.5% | 43.8% |
| ROE (%) | -20.0% | -1.6% | 9.4% |
🧪 From bleeding cash to surprising OPM—FY25’s profit actually happened, but…
3. 📊 Valuation — Is ₹29.6 Too Cheap or Too Risky?
| Metric | Value |
|---|---|
| CMP | ₹29.6 |
| P/E | 25.7x |
| Book Value | ₹12.8 |
| P/B | 2.31x |
| Market Cap | ₹22.9 Cr |
| Face Value | ₹10 |
🧮 Fair Value Calculation
Assume:
- Forward EPS: ₹1.5 (mild growth)
- Fair P/E range: 15–20x (due to SME risk, lumpy real estate)
👉 Fair Value = ₹22.5–₹30 range
(Current price is on the upper edge already)
4. 🔍 What’s Cooking?
- ✅ FY25 Result Out — highest profit since FY17
- 📑 Appointed new auditors + signed loan agreement — prepping for expansion?
- 😬 Yet another year of high debtors (334 days) — revenue booked ≠ money in hand
- 😱 Inventory days: 3,749 — looks like they built a colony and forgot to sell it
5. 📉 Balance Sheet — More Dust Than Concrete?
| Metric | FY25 |
|---|---|
| Net Worth | ₹9.9 Cr |
| Debt | ₹8.26 Cr |
| Debt/Equity | 0.83x |
| Investments | ₹3.8 Cr |
| Fixed Assets | ₹0.01 Cr |
🤨 More money in investments than in buildings?
💀 Fixed assets at ₹1 lakh—either they rent everything or this is virtual realty.
6. 💸 Cash Flow — Missing from the Blueprint
| Metric | FY25 |
|---|---|
| CFO | -₹0.18 Cr |
| FCF | Negative |
| Net Cash Flow | -₹0.01 Cr |
📦 For a real estate company, negative CFO during profitable year = 🚨
This is not a tech startup. You need cash to build.
7. 📐 Ratios — Sexy Margins, Stressy Cash Cycle
| Ratio | FY25 |
|---|---|
| ROE | 9.4% |
| ROCE | 10.1% |
| OPM | 43.8% |
| Debtor Days | 333.5 |
| Inventory Days | 3,749.8 |
| CCC | ~3,990 Days |
👷♂️ Real estate usually has high working capital, but this is 4x industry average
8. 🆚 Peer Comparison — From Jaipur with Hope
| Company | ROE (%) | P/E | Mcap (Cr) | OPM (%) | Sales (Cr) |
|---|---|---|---|---|---|
| DLF | 11.2 | 45.7 | 2,09,362 | 26.4 | 7,993 |
| Oberoi Realty | 14.7 | 32.2 | 69,768 | 58.7 | 5,286 |
| Macrotech Dev. | 14.7 | 51.4 | 1,41,941 | 28.9 | 13,780 |
| Dhanuka Realty | 9.4 | 25.7 | 22.9 | 43.8 | 3.13 |
📉 Nowhere near the big boys in scale
✅ Margins better than expected (probably one-time)
9. 🔁 Shareholding — Holding Steady
| Period | Promoter Holding |
|---|---|
| FY22 | 73.6% |
| FY25 | 66.9% |
📉 Promoters diluted ~6.7% over 3 years — mild
📌 Still majority held = decent skin in the game
10. 🧠 EduInvesting Verdict™
“A builder that finally built something — but can it sell?”
Dhanuka Realty is an odd duck:
- Had multiple years of ZERO sales
- Suddenly FY25 = profitable
- But cash flow, receivables, and inventory issues scream “unsold flats and unpaid bills”
With ₹3 Cr revenue and ₹23 Cr market cap, it’s not overvalued.
But don’t be fooled by the EPS — real estate accounting can be as fictional as daily soaps.
✍️ Written by Prashant | 📅 June 30, 2025
Tags: Dhanuka Realty, SME real estate stock, CREDAI Rajasthan, Jaipur builders, FY25 earnings, EduInvesting real estate, microcap India, real estate stock analysis
