Trading at ₹7.60 per share as of January 30, 2026, Epsom Properties represents a cautionary tale in value destruction. With 74.53 crore shares outstanding and negative book value of ₹2.18 per share, the company's equity has been completely eroded by accumulated losses totalling ₹9.07 crores against share capital of ₹7.45 crores. The stock has delivered a meagre 1.47% return over the past year, significantly underperforming the Sensex's 6.97% gain during the same period.
The company's operational dormancy is not a recent phenomenon. Financial records reveal zero sales across all reported quarters spanning multiple years, with employee costs of ₹0.02 crores per quarter representing the only tangible expense. This skeletal cost structure, whilst minimal, continues to bleed shareholder capital with no revenue-generating activities to offset these outflows.
| Quarter | Net Sales (₹ Cr) | Employee Cost (₹ Cr) | PBDIT (₹ Cr) | Net Loss (₹ Cr) |
|---|---|---|---|---|
| Dec'25 (Q3 FY26) | 0.00 | 0.02 | -0.04 | -0.04 |
| Sep'25 (Q2 FY26) | 0.00 | 0.02 | -0.04 | -0.04 |
| Jun'25 (Q1 FY26) | 0.00 | 0.02 | -0.08 | -0.08 |
| Mar'25 (Q4 FY25) | 0.00 | 0.02 | -0.16 | -0.16 |
| Dec'24 (Q3 FY25) | 0.00 | 0.02 | -0.04 | -0.04 |
| Sep'24 (Q2 FY25) | 0.00 | 0.03 | -0.06 | -0.06 |
| Jun'24 (Q1 FY25) | 0.00 | 0.03 | -0.09 | -0.09 |
Financial Performance: A Pattern of Persistent Losses
Epsom Properties' Q3 FY26 results mirror the company's established pattern of operational inertia. The net loss of ₹0.04 crores for the quarter represents a continuation of the loss-making trajectory, though slightly improved from the ₹0.08 crores loss recorded in Q1 FY26. On a nine-month basis for FY26 (April-December 2025), the company has accumulated losses of ₹0.16 crores, matching the full-year loss of FY25.
The company's operating profit before depreciation, interest, and tax (PBDIT) stood at negative ₹0.04 crores in Q3 FY26, with zero other income to cushion the blow. Employee costs, whilst minimal at ₹0.02 crores per quarter, represent the entirety of the company's operational expenses. With no revenue generation, all margins—operating, gross, and net—remain at 0.0%, a stark indicator of complete business inactivity.
The balance sheet paints an equally concerning picture. As of March 2025, shareholder funds stood at negative ₹1.61 crores, deteriorating from negative ₹1.27 crores in the previous year. Long-term debt has steadily increased to ₹1.71 crores from ₹1.36 crores year-on-year, suggesting the company may be borrowing to meet minimal operational expenses despite having no business operations. Current assets of ₹0.11 crores provide limited liquidity cushion.
Critical Red Flag: Negative Shareholder Equity
With accumulated losses of ₹9.07 crores exceeding share capital of ₹7.45 crores, Epsom Properties has completely eroded shareholder equity. The negative book value of ₹2.18 per share means the company's liabilities exceed its assets, a fundamental warning sign that the business structure is financially insolvent on paper.
Operational Paralysis: A Shell Company in Distress
The most alarming aspect of Epsom Properties' financial profile is the complete absence of any revenue-generating activity. Originally incorporated as Tamil Nadu Drugs & Pharmaceuticals Export Private Limited in 1987 and later renamed Hulta Exports Private Limited in 1993 before adopting its current name, the company appears to have ceased all meaningful business operations years ago.
Return on equity (ROE) stands at 0.0%, whilst return on capital employed (ROCE) is deeply negative at -34.10% on average, reflecting the company's inability to generate any returns on the capital deployed. These metrics underscore the fundamental problem: capital is being consumed rather than employed productively. With zero sales growth over the past five years and zero EBIT growth during the same period, the company exhibits no signs of operational revival.
The debt-to-equity ratio, whilst appearing favourable at negative 1.06 due to the company's negative equity base, is misleading. The company carries ₹1.71 crores in long-term debt despite having no operations to service this liability. The interest coverage ratio (EBIT to interest) stands at 0.0 times, indicating the company generates no earnings to cover even minimal interest obligations.
Asset Quality: Minimal Assets, Mounting Liabilities
Epsom Properties holds zero fixed assets and zero investments as of March 2025. Current assets of ₹0.11 crores represent the company's entire asset base, consisting primarily of minimal cash holdings. Against this, long-term debt of ₹1.71 crores and current liabilities of ₹0.01 crores create a structurally insolvent balance sheet. The company's inability to monetise assets or generate cash flows raises serious questions about its going-concern status.
Valuation Analysis: Trading Above Intrinsic Worth
At the current price of ₹7.60, Epsom Properties trades at a price-to-book value of negative 3.26 times, a mathematical anomaly that highlights the disconnect between market price and underlying fundamentals. With negative book value, any positive market price represents a premium to non-existent equity value. The P/E ratio is not applicable given the company's loss-making status and absence of earnings.
The enterprise value-to-EBITDA multiple stands at negative 7.50 times, reflecting the company's negative EBITDA generation. All traditional valuation metrics fail to provide meaningful insights because the fundamental premise of valuation—a going concern with future cash flows—does not apply to Epsom Properties in its current state.
The stock's 52-week range of ₹5.43 to ₹10.50 suggests speculative trading activity rather than fundamental value discovery. Currently trading 27.62% below its 52-week high and 39.96% above its 52-week low, the stock exhibits high volatility (59.02% annualised) with minimal correlation to fundamental performance. The company's proprietary Mojo Score of 17 out of 100 and "STRONG SELL" rating accurately reflect the investment risk profile.
| Valuation Metric | Epsom Properties | Interpretation |
|---|---|---|
| P/E Ratio (TTM) | NA (Loss Making) | No earnings to value |
| Price to Book Value | -3.26x | Trading above negative equity |
| EV/EBITDA | -7.50x | Negative EBITDA generation |
| EV/Sales | NA | Zero revenue |
| Market Cap | ₹6.00 Cr | Micro-cap, high risk |
| Book Value/Share | ₹-2.18 | Negative equity per share |
Peer Comparison: Underperformer Across All Metrics
Comparing Epsom Properties to its realty sector peers reveals the stark underperformance across all financial metrics. Within its peer group of micro-cap realty companies, Epsom Properties stands out for its complete operational inactivity and negative equity base.
| Company | P/E (TTM) | ROE (%) | Debt/Equity | Price/Book |
|---|---|---|---|---|
| Epsom Properties | NA (Loss Making) | 0.0% | -1.06 | -3.26 |
| Athena Constructions | NA (Loss Making) | 0.0% | 1.11 | 0.49 |
| Gallops Enterprises | 8.10 | N/A | N/A | N/A |
| KMF Builders | NA (Loss Making) | 13.97% | -0.18 | 0.69 |
| UTL Industries | 149.12 | 0.0% | 0.01 | 1.41 |
| Purohit Constructions | NA (Loss Making) | 0.0% | 0.00 | 3.77 |
Epsom Properties' ROE of 0.0% matches some peers but is significantly below KMF Builders' 13.97%, highlighting the lack of profitability. The negative price-to-book ratio of -3.26x is an outlier, as most peers trade at positive multiples despite challenges. With a market capitalisation of ₹6.00 crores, Epsom Properties ranks third among its peer group, though this positioning provides little comfort given the absolute lack of business operations.
Shareholding Pattern: Stable but Uninspiring
The shareholding pattern of Epsom Properties has remained remarkably stable over the past five quarters, with promoter holding steady at 56.32% and no changes in institutional or retail ownership. This stability, however, reflects investor apathy rather than confidence, as the company's operational paralysis offers little incentive for portfolio adjustments.
| Quarter | Promoter % | FII % | MF % | Insurance % | Non-Institutional % |
|---|---|---|---|---|---|
| Dec'25 | 56.32% | 1.07% | 0.00% | 0.00% | 42.61% |
| Sep'25 | 56.32% | 1.07% | 0.00% | 0.00% | 42.61% |
| Jun'25 | 56.32% | 1.07% | 0.00% | 0.00% | 42.61% |
| Mar'25 | 56.32% | 1.07% | 0.00% | 0.00% | 42.61% |
| Dec'24 | 56.32% | 1.07% | 0.00% | 0.00% | 42.61% |
Promoter Jhansi Lakshmi Vellanki holds the entire 56.32% promoter stake with zero pledging, indicating no immediate liquidity stress at the promoter level. However, the complete absence of mutual fund and insurance company holdings signals institutional investors have no interest in the stock. Foreign institutional investors maintain a minimal 1.07% stake, likely legacy holdings rather than active investments. The 42.61% non-institutional holding represents retail investors who may be unaware of the company's deteriorating fundamentals or are trapped in illiquid positions.
Stock Performance: Underperformance Across All Timeframes
Epsom Properties has consistently underperformed the broader market across virtually all timeframes, with negative alpha generation indicating value destruction relative to the benchmark. Over the past year, the stock has delivered a meagre 1.47% return compared to the Sensex's 6.97% gain, resulting in a negative alpha of 5.50 percentage points.
| Period | Stock Return | Sensex Return | Alpha |
|---|---|---|---|
| 1 Month | +9.35% | -3.03% | +12.38% |
| 3 Months | -13.73% | -2.72% | -11.01% |
| 6 Months | -3.18% | +0.77% | -3.95% |
| YTD (FY26) | +4.25% | -3.65% | +7.90% |
| 1 Year | +1.47% | +6.97% | -5.50% |
| 2 Years | -14.41% | +15.42% | -29.83% |
| 3 Years | +2.56% | +38.00% | -35.44% |
| 5 Years | +16.74% | +77.40% | -60.66% |
The stock's technical trend is classified as "mildly bearish" as of January 2026, with the price trading below all major moving averages—5-day (₹7.61), 20-day (₹7.28), 50-day (₹7.15), 100-day (₹7.44), and 200-day (₹8.22). The MACD indicator shows mildly bearish signals on the monthly timeframe, whilst the RSI provides no clear directional signal, reflecting the stock's lack of momentum in either direction.
With a beta of 1.50, Epsom Properties exhibits higher volatility than the broader market, amplifying downside moves during market corrections. The stock's 59.02% annualised volatility places it in the "high risk, low return" category, with risk-adjusted returns of just 0.02 compared to the Sensex's 0.62. This unfavourable risk-return profile makes the stock unsuitable for risk-averse investors seeking stable returns.
Investment Thesis: Multiple Red Flags, No Green Shoots
The investment case for Epsom Properties is fundamentally flawed across all critical parameters. The company's quality grade is assessed as "Below Average," reflecting its weak long-term financial performance and complete absence of business operations. The financial trend is classified as "Flat," though this understates the severity of the situation—flat implies stability, whereas Epsom Properties exhibits operational extinction.
From a valuation perspective, the stock is categorised as "Risky," a designation that aptly captures the disconnect between market price and intrinsic value. With negative book value and no earnings, any positive market price represents speculative premium rather than fundamental worth. The technical trend of "Mildly Bearish" provides little comfort, as technical analysis offers limited utility for a stock with minimal liquidity and no fundamental catalyst for price appreciation.
The company's proprietary Mojo Score of 17 out of 100 places it firmly in "STRONG SELL" territory, a rating that has persisted since July 2025. This score reflects the confluence of negative factors: bearish technical trend, flat financial performance, negative book value indicating weak long-term fundamental strength, and persistent quarterly losses.
Limited Positives
- Zero Promoter Pledging: Promoter stake of 56.32% carries no pledging, indicating no immediate liquidity stress at the ownership level.
- Minimal Debt Burden: Long-term debt of ₹1.71 crores is manageable in absolute terms, though problematic given zero revenue generation.
- Stable Shareholding: No dilution or significant changes in shareholding pattern over the past five quarters suggests no distress capital raising.
- Recent Price Stability: One-month return of +9.35% shows some speculative interest, though disconnected from fundamentals.
- Sector Outperformance: 1-year return of +1.47% outperforms the realty sector's -11.92% decline, though this is a relative achievement in a declining sector.
Critical Concerns
- Zero Revenue Generation: Complete absence of sales across all reported quarters indicates operational shutdown or dormancy.
- Negative Shareholder Equity: Book value of ₹-2.18 per share means liabilities exceed assets, signalling technical insolvency.
- Persistent Losses: Quarterly losses of ₹0.04 crores continue to erode capital with no path to profitability visible.
- No Business Operations: Zero fixed assets, zero investments, and minimal current assets indicate the company is a shell entity.
- Increasing Debt Despite No Operations: Long-term debt increased from ₹1.36 crores to ₹1.71 crores YoY despite zero revenue.
- Negative ROCE of -34.10%: Capital employed generates negative returns, destroying shareholder value systematically.
- High Volatility, Low Returns: 59.02% volatility with minimal positive returns creates unfavourable risk-reward profile.
- No Institutional Interest: Zero mutual fund and insurance holdings signal complete institutional avoidance.
- Below Average Quality Grade: Long-term fundamental weakness with no improvement trajectory visible.
- Mildly Bearish Technical Trend: Price trading below all major moving averages with no momentum indicators showing strength.
Outlook: No Catalysts for Revival
The outlook for Epsom Properties remains deeply concerning with no visible catalysts for operational revival or value creation. The company's complete lack of business activity, negative equity base, and mounting debt burden create a structural headwind that appears insurmountable without significant capital infusion and business restructuring—neither of which appears on the horizon.
Potential Positive Catalysts (Highly Unlikely)
- Asset Monetisation: Sale of any hidden or undervalued assets could provide one-time capital infusion.
- Business Restructuring: Complete operational overhaul with new management and business model could theoretically revive the entity.
- Merger or Acquisition: Acquisition by a larger player seeking shell company or tax benefits could provide exit opportunity.
- Promoter Capital Infusion: Fresh equity from promoters could restore positive net worth and provide working capital.
Red Flags to Monitor (High Probability)
- Further Equity Erosion: Continued quarterly losses will deepen negative book value, increasing technical insolvency.
- Debt Servicing Challenges: Rising debt without revenue generation could trigger default or restructuring.
- Delisting Risk: Failure to meet minimum listing requirements could result in forced delisting from exchanges.
- Complete Operational Shutdown: Even minimal employee costs may cease if promoters abandon revival efforts.
- Regulatory Scrutiny: Prolonged operational inactivity may attract regulatory questions about going-concern status.
- Liquidity Evaporation: Already minimal trading volumes could dry up completely, trapping remaining shareholders.
The Verdict: Avoid at All Costs
Score: 17/100
For Fresh Investors: Avoid completely. With zero revenue, negative equity, and no operational activity, Epsom Properties offers no investment merit. The stock represents pure speculation with asymmetric downside risk and virtually no upside potential grounded in fundamentals. Capital deployed here is capital at severe risk of permanent impairment.
For Existing Holders: Exit at the earliest opportunity, even at a loss. The company's structural insolvency and operational paralysis make recovery highly improbable. Any current market price above zero represents an opportunity to salvage remaining capital before further deterioration. Do not average down or hold hoping for turnaround—the probability of value recovery is negligible.
Fair Value Estimate: ₹0.00 (100% downside from current price of ₹7.60). With negative book value and zero business operations, the company has no intrinsic value. Current market price reflects speculative trading disconnected from fundamentals.
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 advisor before making any investment decisions.
