1. At a Glance
A ₹5,000 Cr company with no actual operations and a P/E of 433? Welcome to the surreal world of National Standard (India) Ltd — a Lodha Group subsidiary with virtually zero sales, mysterious “Other Income,” and a market cap that screams DLF but business that whispers “ghost town.”
2. Introduction with Hook
Imagine a lavish high-rise, beautifully lit, perfectly designed—except no one’s inside. That’s National Standard (India) Ltd.
- FY25 Sales: ₹22 Cr
- Net Profit: ₹13 Cr (thanks to loans to the parent)
- P/E: 433x
- Dividend: Ha! Not since birth.
It’s the real estate company that doesn’t build, sell, or rent—but sure knows how to get valued like a startup unicorn.
3. Business Model (WTF Do They Even Do?)
National Standard (India) Ltd, now under Lodha Group since 2011, claims to operate in:
- Property Development
- Sale of Building Materials (1%)
- Other Operating Income (~6%)
- Other Income from Loans (~65%) – Loaned to Lodha Group entities
Let’s call it what it is: a Lodha shell—parked on BSE for… reasons. The “development” is more financial engineering than construction.
4. Financials Overview
| Metric | FY25 |
|---|---|
| Sales | ₹22 Cr |
| Operating Profit | ₹0 Cr |
| Net Profit | ₹13 Cr |
| ROCE | 6.88% |
| ROE | 4.97% |
| EPS | ₹6.60 |
| Book Value | ₹136 |
| Price/Book | 18.38x |
| Dividend | 0% |
| Other Income | ₹18 Cr |
Summary:
They made ₹22 Cr, mostly interest from loans to their own parent. Real estate revenue? Almost non-existent. Profitability? Borrowed.
5. Valuation
Let’s break this down:
- Stock Price: ₹2,503
- EPS: ₹6.60 → P/E: 433x
- Book Value: ₹136 → P/B: 18.38x
Even DLF trades at 4.9x book and has 8,000 cr+ revenue.
Fair Value Range: ₹300 – ₹500
(Generous even at 50–80x earnings for a glorified treasury operation)
This is either Lodha’s prestige listing for optics… or a sleepwalking time bomb.
6. What’s Cooking – News, Triggers, Drama
Q1 FY26
- ₹0 Cr sales. ₹0.99 Cr profit.
- 62nd AGM scheduled for Sept 2025—via video conferencing (obviously).
- No projects under development, construction, or announcement.
Potential Triggers?
- Lodha may reverse-merge projects or monetization into this listed shell.
- Delisting? Possible.
- Re-rating? Unlikely until operations actually start.
7. Balance Sheet
| Item | FY25 (₹ Cr) |
|---|---|
| Equity Capital | ₹20 |
| Reserves | ₹252 |
| Borrowings | ₹0 |
| Other Liabilities | ₹5 |
| Total Assets | ₹277 |
| Fixed Assets | ₹0 |
| Investments | ₹0 |
| Other Assets | ₹277 |
Observations:
- Zero debt (good)
- No fixed assets (bad for a real estate co)
- Entire asset base = “Other Assets” = loans to parent (probably)
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Cash |
|---|---|---|---|---|
| FY23 | ₹13 Cr | ₹-14 Cr | ₹0 Cr | ₹-1 Cr |
| FY24 | ₹-1 Cr | ₹1 Cr | ₹0 Cr | ₹-0 Cr |
| FY25 | ₹-8 Cr | ₹8 Cr | ₹0 Cr | ₹-1 Cr |
Takeaway:
The company generates little-to-no operational cash. Financing activity is zilch. Investing activity = round-tripping with parent?
9. Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE | 5% | 8% | 7% |
| ROE | 4.12% | 7.37% | 6.60% |
| Debtor Days | 23 | 19 | 47 |
| CCC | 23 | 19 | 47 |
Verdict:
Return metrics are weak. Debtor days worsening. CCC rising = maybe Lodha isn’t paying back its own loans on time?
10. P&L Breakdown – Show Me the Money
| Year | Sales | OPM % | Net Profit | EPS |
|---|---|---|---|---|
| FY23 | ₹17 Cr | 9% | ₹8 Cr | ₹4.12 |
| FY24 | ₹21 Cr | 16% | ₹15 Cr | ₹7.37 |
| FY25 | ₹22 Cr | 1% | ₹13 Cr | ₹6.60 |
Plot Twist:
As revenue rises, profitability drops. OPM fell from 16% to 1%. And this is despite “Other Income” padding the results!
11. Peer Comparison
| Company | P/E | ROE % | Sales (Cr) | PAT (Cr) | OPM % | P/BV |
|---|---|---|---|---|---|---|
| DLF | 44.9 | 11.3 | 7,993 | 1,282 | 26.3% | 4.92 |
| Lodha | 52.1 | 14.7 | 13,779 | 921.7 | 28.9% | 7.14 |
| Prestige Estates | 163.9 | 3.5 | 7,349 | 25 | 34.2% | 4.98 |
| Brigade Ent. | 39.9 | 14.6 | 5,074 | 246.8 | 27.8% | 4.82 |
| National Std | 433 | 4.97 | 22 | 13 | 1.0% | 18.4 |
Conclusion:
Highest valuation. Lowest fundamentals. It’s either a cruel joke or a future chess move we’re not seeing yet.
12. Miscellaneous – Shareholding, Promoters
| Shareholder | Holding % (Jun 2025) |
|---|---|
| Promoters | 73.94% |
| Public | 26.06% |
| FIIs/DIIs | 0% |
| No. of Holders | 2,465 |
Insight:
- Promoters solidly in control
- No FII/DII interest — not even curious
- Very tight float — explains occasional volume spikes
13. EduInvesting Verdict™
National Standard (India) Ltd is the Indian stock market’s equivalent of Schrödinger’s Cat. It both exists… and does not.
It’s not a real estate company in the operational sense. It’s a Lodha-flavored holding company doing internal money management. The ₹5,000 Cr valuation is riding on fumes, expectations, or perhaps pure illiquidity magic.
If Lodha ever backs a mega project into this shell, it could morph into a premium play. Until then, it’s like a film set with no movie—just painted walls and echoing potential.
Valuation Paradox. Dividend Nil. Transparency Meh. And Yet… Here We Are.
Metadata
Written by EduInvesting Analyst | 18 July 2025
Tags: National Standard India, Lodha Group, Real Estate Shell, Stock Market Anomalies, EduInvesting Premium Research
