At a Glance
Suratwwala Business Group Ltd (SBGL) is that small-cap realty player from Pune that decided to throw in solar power just to sound cool. It has grown profits at a mind-blowing 80% CAGR over 5 years, yet its stock is trading at a 66.5 P/E—because why not? With working capital days ballooning to 832 days, this is a company that takes its sweet time to convert sales into cash. Add a 10.4x P/B ratio and you’ve got a stock that is more overvalued than Mumbai property.
Introduction
Imagine a developer that sells dreams, takes ages to collect cash, and yet flaunts an ROE of 17% like it’s a badge of honor. Suratwwala fits the bill perfectly. With projects like Californiaa West getting environmental clearance, the company is poised for growth—but only if it can survive the cash cycle that’s longer than an Indian wedding.
SBGL also dabbles in solar power generation, because apparently, real estate profits need some sunny diversification. But does this combo justify the premium valuation? Time to investigate.
Business Model (WTF Do They Even Do?)
SBGL is a real estate developer focused mainly on:
- Residential & Commercial Projects –
