Suraj Estate Developers Ltd (Realty - Construction & Contracting) — fundamental analysis, earnings data, and key metrics. PE: 8.7. ROE: 14.0%. This stock is not currently in the Nifty 500 momentum outperformers list.
Deep value thesis based on recent earnings • Updated Feb 22, 2026
Suraj Estate's 137% YoY sales growth and strategic Bandra land acquisitions signal early turnaround potential despite current margin compression.
Verdict
EARLY_INNINGS
Re-rating catalysts over the next 2-4 quarters • Updated Feb 22, 2026
Suraj One Business Bay delivery expected Q1 FY27 could trigger margin recovery from 29.76% to historical 35%+
Impact: +₹150 Cr revenue
“9M sales value up 38% YoY to ₹487 crore with commercial segment driving growth”
₹310 crore collections in 9M FY26 could reduce debt by 20-25% if maintained, improving interest coverage to 3.5x+
“Collections up 48% YoY to ₹124 crore in Q3 FY26”
Bandra West acquisitions (2,666 sq. meters) could yield 30-40% IRR upon development, unlocking hidden asset value
Impact: +₹200 Cr revenue
“Recent acquisition of two land parcels in Bandra West totaling 2,666 sq. meters”
Risks that could prevent re-rating or deepen the value trap
If Q4 FY26 shows continued margin compression beyond 15% PAT margin
Impact: -500 bps margin impact
Management view: Company cites project mix as temporary factor but needs to demonstrate cost control measures in next quarter's results
Monitor: Q4 FY26 PAT margin vs Q3 FY26
If RBI raises rates by 50bps or company's credit rating downgraded
Impact: -300 bps margin impact
Management view: Company has fixed-rate debt but may face refinancing risk in 2027
Monitor: Q4 FY26 finance cost as % of revenue
If Mumbai office vacancy rate exceeds 25% in Q1 2026
Impact: -400 bps margin impact
Management view: Company believes its prime Bandra location provides competitive advantage in absorption
Monitor: Mumbai office space absorption rate in Q1 2026
Forward-looking targets from management for FY27
Revenue Growth Target
15%
Implied PAT Growth
30%
OPM Guidance
32%
Capex Plan
₹50 Cr
Credit Growth Target
20%
Key Milestones
• Suraj One Business Bay completion by June 2026
• Debt reduction to ₹250 crore by March 2027
• Land monetization of Bandra West parcels by Q3 FY27
The above analysis is AI-generated from publicly available financial data. This is educational research only — not investment advice. Last updated Feb 22, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Suraj Estate Developers Ltd's latest quarterly results (Dec 2025) show
Suraj Estate Developers Ltd's current PE ratio is 8.7x.
Suraj Estate Developers Ltd's price-to-book ratio is 0.9x.
Suraj Estate Developers Ltd's fundamental strength based on key financial ratios
Suraj Estate Developers Ltd has a debt-to-equity ratio of N/A.
Suraj Estate Developers Ltd's return ratios over recent years
Suraj Estate Developers Ltd's operating cash flow is negative (FY2025).
Suraj Estate Developers Ltd currently does not pay a significant dividend (yield 0.00%).
Suraj Estate Developers Ltd's shareholding pattern (Dec 2025)
Suraj Estate Developers Ltd's promoter holding has remained stable recently.
Suraj Estate Developers Ltd is an established outperformer with 1 weeks of consecutive Nifty 500 outperformance.
Suraj Estate Developers Ltd has 3 key growth catalysts identified from recent earnings analysis
Suraj Estate Developers Ltd has 3 key risks worth monitoring
Suraj Estate Developers Ltd's management has provided the following forward guidance for FY27
Based on quantitative research signals, here is why Suraj Estate Developers Ltd may be worth studying
Suraj Estate Developers Ltd investment thesis summary:
Suraj Estate Developers Ltd's forward outlook based on current data signals
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
