The stock, trading at ₹7.80 as of November 07, 2025, has exhibited extreme volatility with a 53.39% annualised volatility measure. Following the Q2 results, the stock gained 3.72% in a single session, though this appears to be a technical bounce rather than a fundamental improvement. Over the past week, the stock has plummeted 10.86%, reflecting growing investor scepticism about the company's ability to resume operations or generate value for shareholders.
The broader picture remains deeply concerning. Epsom Properties has recorded zero sales for every quarter tracked in the available data, with losses ranging from ₹0.04 crores to ₹0.16 crores quarterly. The company's shareholder funds stand at a negative ₹1.61 crores as of March 2025, whilst long-term debt has steadily increased to ₹1.71 crores, creating a debt-to-equity ratio that reflects severe financial distress. With no cash generation from operations and minimal current assets of ₹0.11 crores, the company's liquidity position is precarious at best.
| Quarter | Net Sales (₹ Cr) | Net Loss (₹ Cr) | QoQ Change | Employee Cost (₹ Cr) |
|---|---|---|---|---|
| Sep'25 (Q2 FY26) | 0.00 | -0.04 | ▲ 50.00% | 0.02 |
| Jun'25 (Q1 FY26) | 0.00 | -0.08 | ▲ 50.00% | 0.02 |
| Mar'25 (Q4 FY25) | 0.00 | -0.16 | ▼ 300.00% | 0.02 |
| Dec'24 (Q3 FY25) | 0.00 | -0.04 | ▲ 33.33% | 0.02 |
| Sep'24 (Q2 FY25) | 0.00 | -0.06 | ▲ 33.33% | 0.03 |
| Jun'24 (Q1 FY25) | 0.00 | -0.09 | ▲ 35.71% | 0.03 |
| Mar'24 (Q4 FY24) | 0.00 | -0.14 | — | 0.03 |
Financial Performance: A Company Without Operations
The Q2 FY26 results reveal a company trapped in a state of suspended animation. With zero revenue for the quarter, Epsom Properties recorded an operating loss (PBDIT excluding other income) of ₹0.04 crores, which represents a 50.00% improvement from Q1 FY26's loss of ₹0.08 crores. However, this "improvement" is misleading – it merely reflects marginally lower cash burn rather than any operational recovery.
Employee costs remained stable at ₹0.02 crores in Q2 FY26, down from ₹0.03 crores in the year-ago period, suggesting the company maintains minimal staffing levels. With no depreciation, negligible interest expenses, and zero other income, the net loss for Q2 FY26 stood at ₹0.04 crores. On a half-yearly basis for H1 FY26, the company accumulated losses of ₹0.12 crores, compared to ₹0.15 crores in H1 FY25, showing a marginal reduction in the rate of cash depletion.
The complete absence of revenue generation across all tracked periods raises fundamental questions about the company's business model and strategic direction. The realty sector typically requires significant capital investment, project execution capabilities, and market presence – none of which appear to be functioning at Epsom Properties. The company's inability to generate even nominal sales suggests either a complete cessation of business activities or projects stuck in regulatory or execution limbo.
Critical Financial Distress Indicators
Negative Shareholder Equity: At ₹-1.61 crores as of March 2025, the company's liabilities exceed its assets, indicating severe balance sheet stress. The negative book value per share of ₹-2.18 means shareholders have no tangible claim on company assets.
Persistent Losses: Seven consecutive quarters of zero revenue with cumulative losses eroding shareholder value continuously. No path to profitability is evident in the available data.
Rising Debt Burden: Long-term debt has increased from ₹0.07 crores in March 2020 to ₹1.71 crores in March 2025, whilst the company generates no income to service this debt.
Balance Sheet Deterioration: Erosion of Shareholder Value
The balance sheet tells a story of systematic value destruction. Shareholder funds have declined from a negative ₹0.04 crores in March 2020 to a negative ₹1.61 crores in March 2025, representing a cumulative erosion of ₹1.57 crores over five years. Reserves and surplus have deteriorated from ₹-7.49 crores to ₹-9.07 crores during this period, reflecting accumulated losses that have completely wiped out the company's equity capital of ₹7.45 crores.
On the liabilities side, long-term debt has surged from ₹0.07 crores in March 2020 to ₹1.71 crores in March 2025, a 2,343% increase over five years. This debt accumulation, occurring whilst the company generates no revenue, suggests the company has been borrowing to meet basic operational expenses and statutory obligations. Current liabilities remain minimal at ₹0.01 crores, primarily comprising other current liabilities with zero trade payables – consistent with a company conducting no business operations.
The asset side is equally concerning. Fixed assets stand at zero, indicating the company holds no productive capacity or property inventory despite being classified in the realty sector. Current assets total just ₹0.11 crores as of March 2025, marginally up from ₹0.10 crores in March 2024. With no investments and minimal current assets, the company lacks any meaningful resources to restart operations or service its growing debt burden.
Return on Equity: A Meaningless Metric
With negative book value, calculating meaningful ROE becomes impossible. The five-year average ROCE of -19.80% and latest ROCE of -34.00% reflect the company's inability to generate returns on any measure of capital employed. These metrics underscore the fundamental breakdown in the company's business model and value creation capacity.
The Realty Sector Context: An Industry Outlier
The Indian realty sector has witnessed a significant revival post-pandemic, with established players reporting strong sales bookings, improving cash flows, and deleveraging balance sheets. Against this backdrop, Epsom Properties stands as an extreme outlier – a company unable to participate in any aspect of the sector's recovery.
The company's classification as a "micro cap" with a market capitalisation of just ₹6.00 crores places it at the absolute bottom of the market capitalisation spectrum. Most functional realty companies, even small regional players, maintain market caps in the hundreds of crores, reflecting land banks, ongoing projects, or development potential. Epsom Properties' minuscule valuation suggests the market has largely written off any prospects of operational recovery.
The company's one-year stock return of -0.26% compares unfavourably to the broader Realty sector return of -3.58%, though both have underperformed the Sensex's 4.62% gain. However, Epsom's 3.32% outperformance versus the sector appears to be driven by extreme volatility and low liquidity rather than any fundamental strength. The stock's 53.39% volatility – more than four times the Sensex's 12.35% – makes it unsuitable for most investors.
| Company | Market Cap (₹ Cr) | P/E (TTM) | P/BV | Debt to Equity |
|---|---|---|---|---|
| Epsom Properties | 6.00 | NA (Loss Making) | -3.60 | -1.04 |
| East Buildtech | — | NA (Loss Making) | 1.37 | 0.01 |
| Gallops Enterprises | — | 8.10 | — | — |
| UTL Industries | — | NA (Loss Making) | 2.04 | 0.01 |
Shareholding Pattern: Stable but Concerning
The shareholding pattern has remained completely static over the past five quarters, with promoter holding steady at 56.32%, FII holding at 1.07%, and non-institutional investors at 42.61%. Notably, mutual funds, insurance companies, and other domestic institutional investors (DIIs) maintain zero exposure to the stock – a clear indication that professional investors have avoided this company entirely.
The promoter holding of 56.32%, held by Jhansi Lakshmi Vellanki, represents a majority stake but raises questions about the promoter's commitment or ability to revive operations. With zero pledging of shares, at least there is no immediate threat of forced selling, but the lack of any fresh capital infusion or operational turnaround plan is conspicuous by its absence.
The presence of a single FII with 1.07% holding is unusual for a company of this profile. This minimal institutional participation, combined with the absence of mutual fund or insurance company holdings, suggests extremely limited institutional confidence in the company's prospects. The 42.61% non-institutional holding likely comprises retail investors and possibly distressed asset buyers hoping for a turnaround that has yet to materialise.
| Quarter | Promoter % | FII % | MF % | Insurance % | Other DII % | Non-Inst % |
|---|---|---|---|---|---|---|
| Sep'25 | 56.32% | 1.07% | 0.00% | 0.00% | 0.00% | 42.61% |
| Jun'25 | 56.32% | 1.07% | 0.00% | 0.00% | 0.00% | 42.61% |
| Mar'25 | 56.32% | 1.07% | 0.00% | 0.00% | 0.00% | 42.61% |
| Dec'24 | 56.32% | 1.07% | 0.00% | 0.00% | 0.00% | 42.61% |
| Sep'24 | 56.32% | 1.07% | 0.00% | 0.00% | 0.00% | 42.61% |
Stock Performance: Extreme Volatility Masks Fundamental Weakness
The stock's price action reflects the chaotic nature of a distressed, low-liquidity micro-cap. Trading at ₹7.80 as of November 07, 2025, the stock has oscillated between a 52-week low of ₹5.43 and a high of ₹10.50, representing a 93.37% range. This extreme volatility, with just 112 shares traded on the last session, makes the stock highly susceptible to manipulation and unsuitable for most investment strategies.
Over the past week, the stock declined 10.86%, significantly underperforming the Sensex's 0.86% decline, resulting in a negative alpha of 10.00%. The one-month return of 0.13% compares poorly to the Sensex's 1.57% gain. However, the two-year return of 74.89% versus the Sensex's 28.14% appears impressive on the surface, though this likely reflects recovery from extremely depressed levels rather than fundamental improvement.
The stock trades below all major moving averages – 5-day (₹8.06), 20-day (₹8.35), 50-day (₹7.72), 100-day (₹8.23), and 200-day (₹8.40) – indicating sustained downward pressure. Technical indicators show a "mildly bearish" trend as of November 07, 2025, with MACD showing mixed signals and RSI indicating bearish momentum. The delivery volume surge of 454.90% versus the five-day average on November 06, 2025 suggests some speculative interest, though this is unlikely to be sustained without fundamental catalysts.
| Period | Stock Return | Sensex Return | Alpha |
|---|---|---|---|
| 1 Week | -10.86% | -0.86% | -10.00% |
| 1 Month | 0.13% | 1.57% | -1.44% |
| 6 Months | -20.16% | 3.06% | -23.22% |
| YTD | -4.88% | 6.50% | -11.38% |
| 1 Year | -0.26% | 4.62% | -4.88% |
| 2 Years | 74.89% | 28.14% | +46.75% |
| 5 Years | 8.18% | 98.64% | -90.46% |
Valuation Analysis: No Meaningful Metrics
Traditional valuation metrics become meaningless when applied to Epsom Properties. With the company loss-making, the P/E ratio is not applicable. The Price-to-Book Value of -3.60x reflects the negative book value, indicating shareholders are paying ₹7.80 for a claim on negative ₹2.18 of book value per share – an absurd proposition from a fundamental perspective.
The EV/EBITDA and EV/EBIT ratios of -7.49x reflect negative EBITDA and EBIT, whilst EV/Sales is not applicable due to zero revenue. The company's enterprise value calculation itself becomes problematic given the negative shareholder equity and minimal current assets. These metrics collectively underscore that Epsom Properties cannot be valued using conventional methodologies applied to operating companies.
The company's proprietary investment score of 17 out of 100, placing it firmly in the "STRONG SELL" category, reflects the comprehensive assessment of its financial distress, lack of operations, negative equity, and bearish technical trend. The valuation grade of "RISKY" and quality grade of "BELOW AVERAGE" further reinforce the conclusion that this stock presents extreme risk with no visible path to value creation.
"With zero revenue for seven consecutive quarters, negative shareholder equity, and rising debt, Epsom Properties represents a cautionary tale of corporate distress rather than an investment opportunity."
Key Strengths & Risk Factors
KEY STRENGTHS
- Zero promoter pledging indicates no immediate forced selling risk from promoter financing stress
- Stable promoter holding at 56.32% shows continued promoter commitment, albeit without operational turnaround
- Minimal current liabilities of ₹0.01 crores limit immediate payment obligations
- Low trading volumes may limit downside volatility in the near term
KEY CONCERNS
- Zero revenue generation for seven consecutive quarters indicates complete operational cessation
- Negative shareholder equity of ₹-1.61 crores means liabilities exceed assets substantially
- Rising long-term debt to ₹1.71 crores with no income to service debt obligations
- Negative book value per share of ₹-2.18 eliminates tangible shareholder claim on assets
- Zero institutional investor interest from mutual funds, insurance companies, and DIIs
- Extreme volatility of 53.39% makes the stock unsuitable for most investors
- Persistent losses with no visible turnaround plan or operational revival strategy
Outlook: What Lies Ahead
POSITIVE CATALYSTS (Highly Unlikely)
- Asset monetisation or sale of land parcels to reduce debt burden
- Fresh capital infusion from promoters or strategic investors
- Corporate restructuring or merger with an operating entity
- Regulatory approvals enabling project execution if any projects exist
RED FLAGS TO MONITOR
- Further deterioration in shareholder equity below current negative ₹1.61 crores
- Inability to service debt obligations leading to default scenarios
- Continued quarterly losses without any revenue generation
- Regulatory actions or delisting threats due to prolonged non-compliance
- Promoter stake reduction indicating loss of confidence in revival prospects
The Verdict: Avoid at All Costs
Score: 17/100
For Fresh Investors: Avoid completely. This company exhibits all the hallmarks of severe financial distress with zero revenue, negative equity, and no visible path to operational recovery. The extreme volatility and lack of institutional interest make it unsuitable for any investment strategy.
For Existing Holders: Exit at the earliest opportunity, even at current depressed levels. The company's inability to generate revenue for seven consecutive quarters, combined with deteriorating shareholder equity and rising debt, suggests the situation will likely worsen before any potential improvement. Every quarter of continued losses further erodes whatever residual value remains.
Fair Value Estimate: Not applicable – the company's negative book value and absence of operations make traditional valuation impossible. Current market price of ₹7.80 appears to reflect speculative trading rather than fundamental value.
Note: ROCE = (EBIT - Other income)/(Capital Employed - Cash - Current Investments)
⚠️ Investment Disclaimer
This article is for educational and informational purposes only and should not be construed as financial advice. Investors should conduct their own due diligence, consider their risk tolerance and investment objectives, and consult with a qualified financial adviser before making any investment decisions. The analysis presented is based on publicly available information as of November 08, 2025, and circumstances may change materially thereafter.
