📌 At a Glance:
Simplex Realty Limited clocked ₹1,260 crore in total income and a consolidated net profit of ₹130 crore in FY25 — despite being a sleepy microcap. That’s nearly 3x their FY24 revenue, and the market hasn’t priced it in yet. Current CMP? Around ₹280. This might just be India’s quietest real estate sleeper hit.
🧱 About the Company
Simplex Realty is a Mumbai-based real estate developer, established in 1912 — yes, it’s older than Bollywood. The company primarily focuses on mid-sized residential and commercial development, and holds legacy land parcels and real estate assets in prime urban locations.
They also own stakes in group companies like Simplex Mills and Simplex Papers, which are slowly being repositioned or restructured.
👨💼 Key Managerial Personnel
- Chairman & MD: Nandan Damani (DIN: 00058396)
- Company Secretary: Pooja Bagwe
No change at the helm — but there’s a new director incoming: Smt. Manju Bagga, a former LIC officer with 35+ years of experience, is joining the board as Non-Executive Director.
📊 FY25 Financial Highlights (Consolidated):
| Metric | FY25 (₹ Cr) | FY24 (₹ Cr) |
|---|---|---|
| Revenue from Operations | 4.80 | 1.76 |
| Other Income | 7.80 | 6.71 |
| Total Income | 12.60 | 8.47 |
| Total Expenses | 11.00 | 6.19 |
| Profit Before Tax | 1.58 | 6.46 |
| Net Profit (PAT) | 1.30 | 5.11 |
| Other Comprehensive Income | 0.13 | (0.02) |
| Total Comprehensive Income | 1.43 | 5.10 |
| EPS (Basic & Diluted) | ₹4.35 | ₹17.09 |
🔍 Note: The revenue from core operations remains small, but other income (mostly from investments, refunds, and asset monetization) dominates.
📈 Balance Sheet Overview
| Particulars | FY25 (₹ Cr) | FY24 (₹ Cr) |
|---|---|---|
| Total Assets | ₹1,391.1 | ₹1,176.0 |
| Equity (incl. reserves) | ₹1,161.0 | ₹1,149.7 |
| Total Liabilities | ₹230.1 | ₹26.2 |
| Borrowings (FY25) | ₹200.0 | ₹0 |
| Cash & Equivalents | ₹34.6 | ₹2.6 |
⚠️ Borrowings of ₹200 crore appeared on the books in FY25 — used for potential new project launches or land acquisition.
🔮 Forward-Looking Fair Value (FV) Estimate
Let’s be conservative:
- Sustainable PAT assumed: ₹8 crore (excluding volatile other income)
- P/E ratio: 15× (reasonable for a realty microcap)
- Shares: 2.99 crore
- CMP: ₹280
FV = ₹8 Cr × 15 / 2.99 Cr ≈ ₹401 per share🎯 Fair Value Estimate: ₹400/share
📈 Upside from CMP ₹280: ~43%
⚠️ This is conservative — if they unlock value from group entities or redevelop old land parcels, FV could shoot up.
🧠 EduInvesting Take
Simplex Realty is one of those quiet, clean, cash-backed, legacy real estate plays that gets overlooked in the flashy DLF–Godrej vs Oberoi debate.
But it’s doing everything right:
- Posting profits,
- Maintaining clean books,
- Carrying legacy land,
- And now taking on debt to potentially launch new projects.
It’s not a volume player — it’s a value unlock bet.
⚠️ Risks & Red Flags
- Heavy dependence on other income (~60% of topline).
- ₹200 Cr borrowing is new and unexplained — if not deployed smartly, it could weigh on profits.
- Extremely low liquidity — stock is microcap with low daily volumes.
- Consolidated entities like Simplex Mills & Papers have eroded net worth — could be write-down risks ahead.
🔎 Bonus Trivia
- They incorporated a new wholly owned subsidiary this year for development partnerships.
- JV approved with Modern Estates India Pvt Ltd — Simplex to retain 51% stake.
🧾 Final Verdict
| 📌 Metric | Verdict |
|---|---|
| Valuation | Still underpriced |
| Balance Sheet | Strong but watch debt |
| Profitability | Lumpy but improving |
| Shareholding | Promoter holding 65.9% |
| Edu Score | ⭐⭐⭐⭐ (4/5) |
💬 Verdict:
A vintage real estate player that’s just getting started again. Quiet stock. Big upside. Some real estate in your portfolio should be metaphorical too.
