Value Added Product Mix Shift
Expected: OngoingHIGH confidence
What: Commercial GDV: ₹1,200 Cr
Impact: 25-28% margins
“commercial will have a majority in terms of contribution... INR1,200 crores is a GDV.”
Suraj Estate Developers Ltd: Is It a Deep Value Opportunity?
Average
As of , Suraj Estate Developers Ltd (Realty - Construction & Contracting) has a deep value score of 51/100 (rated Average). 1Y return vs Nifty 500: -28%.
Suraj Estate Developers Ltd Key Facts
- PE Ratio
- 10.6x
- Market Cap
- ₹1,038 Cr
- Value Score
- 51/100
- Margin of Safety
- 173%
- PAT Growth YoY
- +25%
- Revenue Growth YoY
- +6%
- OPM
- 30.0%
PE: Cycle BottomWatch Value
What's Happening
📊PE near cycle lows — valuation reset is underway
👔Promoter stake down 5.4% this quarter
🌐FII stake decreased 1.4% this quarter
🏛️DII reducing — stake down 1.6%
💰Trading 173% below estimated fair value — significant discount
Earnings Acceleration Triggers
1. Value Added Product Mix Shift
OngoingHIGH
2. Tam Expansion Changing Consumption
FY27+HIGH
3. Geographical Expansion
FY27MEDIUM
Key Risks
1. Spillover of 4-5 residential project launches into Q1 FY27 due to pending approv
MEDIUM2. Tight contractor market and rising costs for steel and concrete
LOW3. Delay in shipment of high-speed elevators for the Palette project
LOWSector-Specific Signals
Pre-sales Value (9M FY26)₹487 Cr+38%
Quarterly Collections₹124 Cr+48%
Estimated Unsold GDV₹1,225 Cr
Commercial Sales Area (Q3)51,826 sqft+211%
Key Numbers
PAT Growth YoY
+25%
Inflection Up
Revenue YoY
+6%
Stable
Operating Margin
30.0%
+300 bps YoY
PE Ratio
10.6
PEG Ratio
0.14
Current Price
₹217
3Y PAT CAGR
+55%
Market Cap
1.0K Cr
Valuation
Significantly UndervaluedWhy Are Suraj Estate Developers Ltd's Earnings Accelerating?
Based on Q3 FY26 earnings • Updated Apr 18, 2026
Tam Expansion Changing Consumption
Expected: FY27+HIGH confidence
What: Pagdi Buildings: 19,000 units
“With approximately 19,000 Pagdi buildings across Mumbai... proposed framework aims to improve safety while enhancing the redevelopment feasibility.”
Geographical Expansion
Expected: FY27MEDIUM confidence
What: New Land Parcels: 2,666 sqm
Impact: ₹1 lakh/sqft realization
“Recently, we have also acquired 2 additional land parcels... in Bandra... realizations are in the range of INR1 lakh to INR1,50,000 per square feet.”
Operating Leverage Inflection
Expected: OngoingMEDIUM confidence
What: EBITDA Growth: 14.6% YoY
“EBITDA increased to INR55 crores... supported by operating leverage during the quarter.”
New Product Or Brand Launch
Expected: 45 daysMEDIUM confidence
What: One Business Bay Sales: ₹200 Cr
“Suraj One Business Bay has witnessed a strong start with 40,000 square feet sold within 45 days of launch, translating into a sales value of INR200 crores.”
Commercial Sales Volume (211% YoY growth)
HIGH confidence
What: Commercial Sales Volume (211% YoY growth)
“commercial transactions sales area increased to 51,826 square feet in quarter 3 FY '26, registering a 211% year-over-year increase.”
What Are the Key Risks for Suraj Estate Developers Ltd?
Earnings deceleration risks from management commentary
Spillover of 4-5 residential project launches into Q1 FY27 due to pending approv
MEDIUMTrigger: Delays in obtaining regulatory clearances for new launches.
Management view: Management is working to get approvals within the current fiscal but acknowledges potential spillover.
Monitor: regulatory
Tight contractor market and rising costs for steel and concrete
LOWTrigger: Inflationary pressures in the construction industry.
Management view: Contracts include basic rates with inflation ranges to prevent overshooting contract values.
Monitor: labor
Delay in shipment of high-speed elevators for the Palette project
LOWTrigger: Import-related shipment delays.
Management view: Shipment has now reached the site; OC expected well before the revised RERA date.
Monitor: logistics
What Is Suraj Estate Developers Ltd's Management Saying?
Key quotes from recent conference calls
“The guidance which we expect including the commercial is Rs. 600 crores. [Previous Pre-sales Guidance guidance]”
“The proposed framework aims to improve safety while enhancing the redevelopment feasibility... unlock high value land parcels in a land scarce micro market. [Initiative: Pagdi System Redevelopment]”
“So Rajendra ji, there should be a slight spillover to Q1 because of regulatory approvals. We've changed our certain plans on those launches. [Risk (regulatory): MEDIUM]”
“Whenever we give contracts, obviously they have basic rates mentioned in the contract... some part will have to be borne by us. [Risk (labor): LOW]”
What Did Suraj Estate Developers Ltd Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹182 Cr
YoY +6%QoQ +25.2%
Why: Growth was primarily driven by higher contribution from the commercial segment and steady sales activity during the quarter.
Revenue growth accelerated sequentially due to the successful launch of the commercial project.
EBITDA
₹55 Cr
YoY +14.6%Margin 30.2%
Why: EBITDA increased supported by operating leverage during the quarter as commercial transactions scaled.
Margins remain healthy despite the mix shift toward commercial sales.
PAT
₹25 Cr
YoY +25%QoQ -24.5%
Why: PAT growth was supported by operating leverage and improved commercial transaction volumes.
PAT grew significantly year-over-year but declined sequentially from the H1 average.
Other Highlights
• Commercial sales area increased to 51,826 square feet, a 211% year-over-year increase.
• Sales value rose to INR253 crores in Q3 FY26, a 137% year-over-year increase.
• Collections amounted to INR124 crores in Q3 FY26, up 48% year-over-year.
What Sector Metrics Matter for Suraj Estate Developers Ltd?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Pre-sales Value (9M FY26)
₹487 Cr
YoY +38%
Why: Driven by the successful launch of the commercial segment and residential product mix.
Quarterly Collections
₹124 Cr
YoY +48%QoQ +74%
Why: Reflects stable collection cycles and strong sales from new launches.
Estimated Unsold GDV
₹1,225 Cr
Why: Bulk of the value (₹1,000 Cr) is concentrated in the newly launched commercial project.
Commercial Sales Area (Q3)
51,826 sqft
YoY +211%
Why: Strong absorption of the One Business Bay project within 45 days of launch.
Net Debt
₹500 Cr
QoQ +0.5%
Why: Maintained at stable levels; currently less than 0.5x of total equity base.
Bandra Market Realization
₹1,00,000 - ₹1,50,000
Why: Premium pricing expected for the upcoming luxury cluster in Bandra West.
Ready-to-move-in Inventory
0
Why: All ready-to-move-in projects are fully sold out.
Total Receivables (Sold + Unsold)
₹1,166 Cr
Why: Provides strong cash flow visibility for ongoing and future projects.
What Is Suraj Estate Developers Ltd's Management Guidance?
Forward-looking targets from management for Steady State
OPM Guidance
35%
Margin Outlook
Blended average margin expected to remain steady.
Volume
Pre-sales target reaffirmed.
Management Tone: BULLISH
Guidance Changes
REAFFIRMED
Pre-sales Guidance: ₹600 Cr → ₹600 Cr
How Fast Is Suraj Estate Developers Ltd Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +6% | +26% | Stable |
| PAT (Net Profit) | +25% | +55% | Inflection Up |
| OPM | 30.0% | +300 bps | Volatile |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 2026.
Other Deep Value Stocks in Realty - Construction & Contracting
Frequently Asked Questions: Suraj Estate Developers Ltd
Based on publicly available financial data. This is educational research, not investment advice.
What is Suraj Estate Developers Ltd's deep value score?
Suraj Estate Developers Ltd has a deep value score of 51/100 (rated Average). This score is calculated from three components
- Earnings Score: 9/40 — measures PAT growth momentum across quarters
- Underperformance Score: 14/35 — how much the stock trails Nifty 500 (deeper underperformance = higher contrarian signal)
- Quality Score: 12/25 — operational quality (margins, revenue growth, valuation)
Is Suraj Estate Developers Ltd fundamentally improving?
Suraj Estate Developers Ltd's quarterly profit (PAT) growth trajectory
- Latest Quarter PAT Growth (QoQ): -24%
- Previous Quarter PAT Growth (QoQ): +56%
- 2 Quarters Ago PAT Growth (QoQ): +16%
- PAT Acceleration: -20.2pp (profits are decelerating)
Why is Suraj Estate Developers Ltd underperforming despite good earnings?
Suraj Estate Developers Ltd is underperforming the market despite improving earnings — this is the core deep value thesis
- 1-Year Return vs Nifty 500: -28%
- 6-Month Return vs Nifty 500: -20%
- 3-Month Return vs Nifty 500: 0%
- Yet average quarterly PAT growth is +16% — earnings are improving
- The market often takes time to re-rate stocks with improving fundamentals. This gap between price performance and earnings improvement is what deep value research seeks to identify.
What is the earnings momentum for Suraj Estate Developers Ltd?
Suraj Estate Developers Ltd's earnings momentum is Decelerating — growth rate is slowing.
- PAT QoQ progression: +16% → +56% → -24% (2Q ago → 1Q ago → latest)
- Acceleration: -20.2pp
- PAT YoY Growth: +25%
Is Suraj Estate Developers Ltd undervalued?
Suraj Estate Developers Ltd's valuation metrics
- Price-to-Earnings (PE): 10.4x
- Price-to-Book (PB): 1.1x
- PEG Ratio: 0.1x
- Margin of Safety: +113% (appears undervalued)
What are the revenue and margin trends for Suraj Estate Developers Ltd?
Suraj Estate Developers Ltd's revenue and margin trends
- Latest Quarter Revenue Growth (QoQ): +25%
- Average Quarterly Revenue Growth: +10%
- Revenue Acceleration: +13.7pp
- Latest OPM Change: -15.0pp (margins contracting)
- Average OPM Change: +2.6pp
- Revenue YoY: +6%
What is Suraj Estate Developers Ltd's trailing twelve month (TTM) performance?
Suraj Estate Developers Ltd's trailing twelve month (TTM) performance
- TTM PAT: ₹97 Cr
- TTM PAT Growth: -4.0% YoY
- TTM Revenue: ₹593 Cr
- TTM Revenue Growth: +15.6% YoY
- TTM Operating Margin: 33.4%
What sector does Suraj Estate Developers Ltd belong to?
Suraj Estate Developers Ltd key facts
- Sector: Realty - Construction & Contracting
- Market Cap: ₹1.0K Cr
- Rank in Realty - Construction & Contracting: #4 by value score
- Overall rank among all deep value stocks: #94
Is Suraj Estate Developers Ltd a good deep value opportunity to study?
Suraj Estate Developers Ltd shows limited deep value signals currently — score is 51/100 (Average). Monitor for improvement.
- Value Score: 51/100 (Average)
- Earnings: Not accelerating
- 1Y Underperformance: -28% vs Nifty 500
What is the bull and bear case for Suraj Estate Developers Ltd?
Research Signals (Bull Case)
- Appears undervalued based on fair value analysis
- Revenue growth also accelerating
- Operating margins expanding
Risk Factors (Bear Case)
- Earnings growth decelerating
Which other Realty - Construction & Contracting stocks are deep value opportunities?
Other deep value stocks in Realty - Construction & Contracting
- Geecee Ventures Ltd — Score 56/100, Average, earnings accelerating
- SignatureGlobal India Ltd — Score 43/100, Average, earnings accelerating
- Valor Estate Ltd — Score 41/100, Average
- Sunteck Realty Ltd — Score 30/100, Weak
- Peninsula Land Ltd — Score 16/100, Very Weak
How does the Realty - Construction & Contracting sector look for deep value?
Realty - Construction & Contracting deep value sector overview
- 5 deep value stocks in this sector
- Average value score: 40/100
- Avg PAT acceleration: +83.1pp
- Top pick: SignatureGlobal India Ltd
What is deep value investing?
Deep value investing studies stocks that are underperforming the market despite showing improving fundamentals. The thesis is that the market has not yet recognized the earnings recovery, creating a potential valuation gap. It requires patience — recovery can take several quarters.
How is the deep value score calculated?
The deep value score (0-100) combines three factors:
- Earnings (0-40 pts): PAT growth across last 3 quarters, acceleration, and consecutive growth - Underperformance (0-35 pts): How much the stock trails Nifty 500 over 1Y, 6M, 3M (deeper underperformance = higher score) - Quality (0-25 pts): Revenue growth, margin trends, and valuation metrics (PEG, P/B)
Higher score indicates a stronger contrarian research signal.
What are the growth catalysts for Suraj Estate Developers Ltd?
Suraj Estate Developers Ltd has 6 key growth catalysts identified from recent earnings analysis
- Value Added Product Mix Shift
- Tam Expansion Changing Consumption
- Geographical Expansion
- Operating Leverage Inflection
What are the key risks in Suraj Estate Developers Ltd?
Suraj Estate Developers Ltd has 3 key risks worth monitoring
- Spillover of 4-5 residential project launches into Q1 FY27 due to pending approv
- Tight contractor market and rising costs for steel and concrete
- Delay in shipment of high-speed elevators for the Palette project
What did Suraj Estate Developers Ltd's management say in the latest earnings call?
In Q3 FY26, Suraj Estate Developers Ltd's management highlighted
- "The guidance which we expect including the commercial is Rs. 600 crores. [Previous Pre-sales Guidance guidance]"
- "The proposed framework aims to improve safety while enhancing the redevelopment feasibility... unlock high value land parcels in a land scarce micro m..."
- "So Rajendra ji, there should be a slight spillover to Q1 because of regulatory approvals. We've changed our certain plans on those launches. [Risk (r..."
The above FAQs are generated from publicly available earnings data. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.