1. At a Glance
Radhe Developers pulled off a Q1 FY26 profit of ₹3.88 crore (yes, crores, not lakhs as it loves to confuse) on sales of ₹6.15 crore. With a market cap of ₹133 crore and a stock price cheaper than a cutting chai, the company is that background actor trying to steal the scene in a DLF–Godrej movie.
2. Introduction
Imagine a small real estate developer walking into a party full of realty giants like DLF, Lodha, and Godrej. Everyone’s flexing their 4-digit share prices, while Radhe quietly says, “Hi, I’m ₹2.54.” This quarter, it actually got a few head turns with sales jumping 47% QoQ and profit swinging into the green. But hey, the road from penny to plenty is longer than Ahmedabad’s traffic jams.
3. Business Model (WTF Do They Even Do?)
Radhe Developers builds residential, commercial, plotting, and social infrastructure projects. Translation: it buys land, waits forever, builds a few things, and hopes someone buys. Not exactly a cash machine, but they survive on selective projects and strategic land banks.
4. Financials Overview
- Q1 FY26 Revenue: ₹6.15 Cr (vs ₹4.19 Cr Q4 FY25)
- EBITDA: ₹4.74 Cr (Margins 77% – margin king because expenses were…tiny)
- Net Profit: ₹3.88 Cr (vs ₹2.26 Cr Q4 FY25)
- OPM: 77% (yes, really)
Verdict: Flex? Maybe. Sustainable? Don’t bet your rent.
5. Valuation – What’s This Stock Worth?
- Current P/E: 21x (for a ₹2 stock, this is nosebleed)
- Fair Value (P/E 15x): ₹1.80–₹2.20
- EV/EBITDA-based Range: ₹2.10–₹2.60
DCF? Let’s not embarrass it. Conclusion: Priced like copper, dreaming of gold.
6. What-If Scenarios
- Bull Case: Aggressive land sales, faster project launches → ₹3.50 target.
- Bear Case: Delay in approvals, liquidity crunch → ₹1.20.
- Base Case: ₹2.00–₹2.50, because mediocrity is stable.
7. What’s Cooking (SWOT Analysis)
Strengths: Land bank in Gujarat, low debt.
Weakness: Microscopic revenue vs peers, high working capital days (1,181 days – a record for how long money takes to come back).
Opportunities: Affordable housing demand.
Threats: Larger players eating its lunch, regulatory landmines.
8. Balance Sheet 💰
| Particulars (Mar’25) | Amount (₹ Cr) |
|---|---|
| Equity Capital | 52.37 |
| Reserves | 8.16 |
| Borrowings | 34.92 |
| Total Liabilities | 141.11 |
| Total Assets | 141.11 |
| Commentary: Debt is not drowning, but it’s coughing. |
9. Cash Flow (FY14–FY25)
| Year | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) |
|---|---|---|---|
| FY23 | -9.14 | -2.73 | 11.98 |
| FY24 | -18.66 | 0.58 | 18.98 |
| FY25 | -0.83 | -0.09 | 0.04 |
| Commentary: Operating cash flow looks like your freelancer friend – always working, never showing the money. |
10. Ratios
| Metric | Value |
|---|---|
| ROE | 2.43% |
| ROCE | 2.61% |
| D/E | 0.67 |
| PAT Margin | 62.5% |
| P/E | 21.3 |
| Punchline: ROCE is flatter than soda left out overnight. |
11. P&L Breakdown – Show Me the Money
| Year | Revenue (₹ Cr) | EBITDA (₹ Cr) | PAT (₹ Cr) |
|---|---|---|---|
| FY23 | 14.34 | 1.45 | 0.71 |
| FY24 | 6.76 | -2.79 | -4.63 |
| FY25 | 7.66 | 3.17 | 1.35 |
| Topline is running a marathon, bottom line is crawling. |
12. Peer Comparison
| Company | Rev (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| DLF | 7,993 | 4,657 | 42 |
| Godrej Prop | 4,923 | 1,216 | 52 |
| Oberoi Real | 4,869 | 2,062 | 29 |
| Radhe Dev | 14 | 6 | 21 |
| The least drunk guest at a wedding full of finance bros. |
13. EduInvesting Verdict™
Radhe Developers is like that underdog cricketer who hits a six in one match and then disappears. Q1 FY26 profit was good, but it’s too small to play in the big leagues yet. A decent pit stop, but don’t expect business class legroom.
Written by EduInvesting Team | 28 July 2025
Tags: Radhe Developers, Real Estate, Q1 FY26 Results, EduInvesting Premium
