🧠 At a Glance
Kesar India is a micro-cap real estate developer focused on Nagpur, with luxury and industrial projects under the “Kesar Lands” brand. While ROE is a jaw-dropping 49%, the stock trades at 80x earnings and 31.7x book, even as FY25 profits dipped 81% QoQ. So… is this sustainable growth or just a short-supply hype rally?
✨ 1. Introduction with Hook
Kesar India’s stock chart looks like a rollercoaster drawn by a drunk architect.
- ROE of 49%
- ROCE over 40%
- But wait — March quarter profit fell from ₹16 Cr to ₹3 Cr
- Meanwhile, the stock trades at P/E 80 and P/B 31.7 😵
So… is this Nagpur ka DLF or valuation ka chamatkar?
🏢 2. WTF Do They Even Do?
- Real estate development in Nagpur-centric micro-markets
- Projects include:
- Residential
- Commercial
- Industrial buildings & factories
- 6 verticals under “Kesar Lands” — with focus on luxury and IGBC-certified builds
- ISO 9001:2008 certified, member of CREDAI, NAREDCO, IGBC, etc.
So yes, they have the paperwork. But is the execution scaling?
📊 3. Financials Overview – Profit, Margins, ROE, Growth
| Metric | FY25 |
|---|---|
| Revenue | ₹108 Cr |
| Net Profit | ₹19 Cr |
| OPM | 24% |
| ROE | 48.9% |
| ROCE | 41.8% |
| EPS | ₹7.83 |
| P/E | 80.5x |
| Book Value | ₹19.9 |
| P/BV | 31.7x |
| Market Cap | ₹1,559 Cr |
➡️ Growth is solid. Margins are above-average for real estate. But that valuation is interstellar 🚀
📉 4. Valuation – Cheap, Meh, or Crack?
- CMP = ₹631
- EPS = ₹7.83 → P/E = 80.5x
- Book Value = ₹19.9 → P/B = 31.7x
🧮 Fair Value Range = ₹240 – ₹350
Because… even Godrej Properties trades at 3.9x book and 49x P/E.
Kesar India? More like Kesar Bubble. 🍮
🔥 5. What’s Cooking – News, Triggers, Drama
- 🧱 Acquired 47 acres in Nagpur (May 2025)
- 🤝 Formed a new LLP for real estate with 51% stake – token capital ₹51K
- 🧾 Unmodified audit opinion for FY25
- 💸 FIIs trimmed stake slightly in Mar 2025 from 18.46% → 18.22%
- 🧮 Quarterly profit crashed from ₹16 Cr → ₹3 Cr QoQ ❗
So yeah, good announcements — but bad earnings surprise.
🏚️ 6. Balance Sheet – How Much Debt, How Many Dreams?
| Item | FY25 |
|---|---|
| Equity Capital | ₹25 Cr |
| Reserves | ₹24 Cr |
| Borrowings | ₹27 Cr |
| Total Assets | ₹111 Cr |
| Fixed Assets + CWIP | ₹3 Cr |
| Other Assets (mostly land) | ₹109 Cr |
➡️ Asset-light? Not really. They’ve bulked up “other assets” — presumably land banks.
💸 7. Cash Flow – Sab Number Game Hai
| FY25 (₹ Cr) |
|---|
| CFO |
| CFI |
| CFF |
| Net Cash Flow |
Even in a good earnings year, they burned cash from operations.
No positive CFO = red flag 🚩 for real estate cos.
📊 8. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROCE | 41.8% |
| ROE | 48.9% |
| OPM | 24% |
| Debtor Days | 58 |
| Inventory Days | 252 |
| CCC | 215 days |
| Working Capital Days | 132 |
On paper, ratios are hot. But real estate accounting is… creative writing sometimes.
💥 9. P&L Breakdown – Show Me the Money
| Year | Revenue | OPM | PAT |
|---|---|---|---|
| FY23 | ₹15 Cr | 7% | ₹1 Cr |
| FY24 | ₹53 Cr | 28% | ₹11 Cr |
| FY25 | ₹108 Cr | 24% | ₹19 Cr |
TTM Growth:
- Sales: 102%
- PAT: 79%
Great growth. But margin crashed in March 2025 quarter. 🤕
🧱 10. Peer Comparison – Who Else in the Game?
| Company | Sales | OPM | ROE | P/E | P/B |
|---|---|---|---|---|---|
| DLF | ₹7,993 Cr | 26% | 11% | 44.8x | 4.8x |
| Godrej Prop | ₹4,922 Cr | -1.5% | 10% | 49.1x | 3.9x |
| Oberoi Realty | ₹5,286 Cr | 58.7% | 14.7% | 31.4x | 4.3x |
| Kesar India | ₹108 Cr | 24% | 48.9% | 80.5x | 31.7x |
Yes, this SME is more expensive than literally every bluechip builder in India.
🧾 11. Miscellaneous – Shareholding, Promoters
| Shareholder | Mar 2025 |
|---|---|
| Promoters | 74.99% |
| FIIs | 18.22% |
| Public | 6.79% |
High FII holding for a microcap – very rare. But that also explains volatility.
Also, shareholder count dropped to 341 in Mar 2025. Ultra concentrated.
📢 12. EduInvesting Verdict™
Kesar India’s pitch is simple:
Buy land in Nagpur. Build stuff. Report 50% ROE. Watch your P/E go full “Startup India” mode.
But let’s be real — no ₹100 Cr topline realty firm deserves 80x P/E and 31x book.
- Yes, it’s growing.
- Yes, it has solid ROE.
- But the valuation is criminal. And Q4FY25 suggests cracks are showing.
🧠 EduScore™: 42/100
Valuation on Mars. Execution on Earth. Hold your wallet.
✍️ Written by Prashant | 📅 July 4, 2025
🏷️ Tags:
Kesar India Ltd, Nagpur real estate stock, microcap realty stock, FY25 results, P/E 80 bubble, high ROE stock, real estate SME stock, undervalued vs overhyped, land bank stock India, EduInvesting analysis
