1. At a Glance
Revenue ₹132 Cr (-1% YoY). PAT ₹21 Cr (+16% YoY). OPM 37%. ROE 14%. Stock down 50% in 1 year. Still the king of South Central Mumbai redevelopment with 61% market share. Debt manageable, but sales growth seems stuck in traffic.
2. Introduction with Hook
Imagine a developer who takes crumbling Mumbai chawls, adds marble, glass, and marketing magic, and sells it at ₹50,000 per sq. ft. That’s Suraj Estate. They’re not building skyscrapers—they’re building nostalgia 2.0. But the question is: will this nostalgia pay like Lodha or just linger like Mumbai monsoon delays?
3. Business Model (WTF Do They Even Do?)
Suraj Estate specializes in:
- Redevelopment Projects: They take old housing societies, rehab tenants, and build new luxury towers.
- Market Focus: South Central Mumbai (SCM) – Shivaji Park, Mahim, Dadar – basically the cricket pitch of realty.
- Revenue Play: Sell redeveloped flats at premium prices.
Punchline: “They’re the Robin Hood of real estate: give free flats to old tenants, sell the rest to NRIs.”
4. Financials Overview
- Q1 FY26 Revenue: ₹132 Cr
- Q1 FY26 PAT: ₹21 Cr
- FY25 Revenue: ₹549 Cr (+33%)
- FY25 PAT: ₹100 Cr (+49%)
Margins dipped this quarter, but 5-year profit CAGR is a whopping 134%. Clearly, old buildings = new money.
5. Valuation
- P/E: 16.6 (cheaper than Lodha at 46x).
- CMP/BV: 1.7x – decent.
- Fair Value Range: ₹280 – ₹360.
“If you think realty stocks are stable, you probably haven’t lived through Mumbai traffic.”
6. What’s Cooking – News, Triggers, Drama
- Bought prime land in Shivaji Park for a luxury project.
- Land acquisition in Mahim for commercial development.
- Raised ₹343 Cr in Nov 2024 and ₹500 Cr in Sep 2024.
- Promoter stake still high at 69.6%.
“More land deals than your neighborhood broker WhatsApp group.”
7. Balance Sheet
| (₹ Cr) | FY24 | FY25 |
|---|---|---|
| Borrowings | 441 | 461 |
| Net Worth | 516 | 903 |
| Total Assets | 1,290 | 1,747 |
Takeaway:
Leverage low. Equity doubled due to fund infusion. Healthy base to build on.
8. Cash Flow – Sab Number Game Hai
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating CF | 190 | 9 | -326 |
| Investing CF | -27 | -90 | 79 |
| Financing CF | -157 | 70 | 238 |
Negative operating cash flow in FY25 = working capital squeeze. Classic real estate cycle.
9. Ratios – Sexy or Stressy?
| Metric | Value | Comment |
|---|---|---|
| ROE | 14.1% | Strong. |
| ROCE | 17.4% | Excellent for realty. |
| D/E | 0.5x | Comfortable. |
| OPM | 34% | Sweet. |
10. P&L Breakdown – Show Me the Money
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 306 | 412 | 549 |
| EBITDA | 151 | 233 | 203 |
| PAT | 32 | 67 | 100 |
“EBITDA dropped FY25 due to project mix, but PAT doubled. Builders love profits more than RERA loves paperwork.”
11. Peer Comparison
| Company | P/E | ROE | CMP/BV |
|---|---|---|---|
| Lodha Developers | 46x | 14.7% | 5.7x |
| Oberoi Realty | 30x | 14.7% | 3.9x |
| Godrej Properties | 55x | 8.9% | 3.9x |
| Suraj Estate | 16x | 14.1% | 1.7x |
Observation:
Valuation cheap, returns solid. Market is pricing in small-cap risk.
12. Miscellaneous – Shareholding, Promoters
- Promoter Holding: 69.6% (stable).
- FII Stake: 2.18% (low interest).
- Public Holding: 26.8% (retail heavy).
No governance red flags.
13. EduInvesting Verdict™
Suraj Estate is like that quiet student topping exams: strong fundamentals, low hype. They dominate SCM redevelopment, but expansion outside this niche is still untested.
Final Word:
“A solid mid-cap builder—low drama, decent margins. Just don’t expect skyscraper-like returns overnight.”
Written by EduInvesting Team | 26 July 2025
Tags: Suraj Estate, Q1 FY26 Results, Redevelopment Market, Mumbai Real Estate, EduInvesting Premium
