🧾 National Standard (India) Ltd Q2FY26 – ₹17.25 Cr Sales, ₹4.26 Cr PAT, 318× P/E, 12.6× Book, and a Debt-Free Mirage Worth ₹3,500 Cr

1.At a Glance

Welcome toNational Standard (India) Ltd, the Lodha Group’s “quiet cousin” that doesn’t build skyscrapers — it builds suspense.CMP: ₹1,750. Market cap: ₹3,500 Cr. P/E: 318. Book value: ₹139. Dividend: none (obviously). ROE: a barely caffeinated 4.97 %.

In Q2FY26, the company reported revenue of ₹17.25 Cr and a PAT of ₹4.26 Cr — a heroic 353 % jump in sales QoQ but an 11 % drop in profit. The share, however, is down 63 % in the past year. Investors are still wondering whether this is a real-estate firm or a glorified NBFC that lends to its parent and calls it “other income.”

The last time this stock hit ₹4,850, analysts called it “undervalued Lodha proxy.” Today, it’s a ₹1,750 curiosity trading at 12.6 × book — the only thing appreciating here is sarcasm.

2.Introduction

Some companies sell homes. Some sell dreams.National Standard (India) Ltdsells confusion — professionally, and with audited precision.

Born in 1962, it started life as a manufacturer, wandered into property, and eventually found a home inside theLodha Groupin 2011, underAnanthnath Constructions and Farms Pvt Ltd. Lodha, of course, is India’s answer to “What if DLF had a flashier cousin with more paperwork?”

Today NSIL has one visible project —Lodha Grandezza, Thane— twin 18-storey towers surrounded by three “Supremus” commercial buildings. The rest of the year, the company’s revenue comes from mysterious “other income” — 98 % of which isinterest from loans… to theholding company itself.That’s right: it lends money to Lodha’s own subsidiaries and earns interest as “revenue.” It’s basically a family WhatsApp group that files quarterly results.

Still, every quarter it manages to post a profit, stay debt-free, and maintain a P/E ratio that would make even Apple jealous. If you ever wanted to studyfinancial origami, start here.

3.Business Model – WTF Do They Even Do?

Let’s simplify:

Officially,NSIL is in “Real Estate Development.”Unofficially, it’s in the business ofearning interest from its parentandlooking busy.

Its key revenue lines:

• Property development: 39 % of total revenue (down from 96 % in FY19).
• Sale of building materials: 1 %.
• Other operating revenue: 6 %.
• Other income:64 % of total — because why sweat building towers when you can lend to Lodha and chill?

The company’s flagship,Lodha Grandezza, is mostly sold out. A solid project, but not exactly enough to justify a ₹3,500 Cr valuation.The rest of the time, the company “evaluates business opportunities,” which sounds suspiciously like “scrolling MagicBricks for ideas.”

So what’s the real business here?A Lodha-controlled real estate shell with zero debt, minimal assets, and recurring interest income. Think of it as the Lodha family’sbalance-sheet Airbnb— assets stay elsewhere, cash visits occasionally.

4.Financials Overview

*Infinity, because last quarter’s revenue was basically a rounding error.

Commentary:A quarterly sales jump of 354 % deserves applause, but when your full-year revenue is only ₹35 Cr and your P/E is 318, it’s like clapping for someone who found ₹10 in their own pocket. PAT decline suggests the Lodha interest party might have hit a cap — or maybe the Thane project is truly closing out. Either way, “growth” here depends on whether the parent borrows more.

5.Valuation Discussion – Fair Value Range (Educational Only)

1️⃣ P/E Method

Annualised EPS = ₹5.5 × 4 = ₹22.Industry average P/E ≈ 43.→ Fair value = ₹22 × (35–50) = ₹770–₹1,100 range.

2️⃣ EV