The company's shares closed at ₹17.70 on February 11, 2026, down 1.39% on the day, and have plummeted 38.90% over the past year compared to the Sensex's 10.41% gain—an alpha of -49.31%. Trading below all key moving averages and firmly in bearish territory, the stock reflects investor pessimism about the company's ability to revive operations. With a proprietary Mojo Score of just 12 out of 100 and a "Strong Sell" rating, Popular Estate Management exemplifies a distressed micro-cap struggling with fundamental operational challenges.
Financial Performance: A Company Without Operations
Popular Estate Management's Q3 FY26 results reveal a company that has effectively ceased meaningful business activities. With zero revenue generation for the seventh consecutive quarter, the company reported a net loss of ₹0.05 crores, marginally better than Q2 FY26's ₹0.08 crore loss but still representing a 58.33% year-on-year deterioration from Q3 FY25's ₹0.12 crore loss. The absence of any sales revenue underscores the fundamental question: what business is this company actually conducting?
| Quarter | Net Sales (₹ Cr) | Operating Profit (₹ Cr) | Net Profit (₹ Cr) | QoQ Change | YoY Change |
|---|---|---|---|---|---|
| Dec'25 | 0.00 | -0.05 | -0.05 | +37.50% | -58.33% |
| Sep'25 | 0.00 | -0.08 | -0.08 | -11.11% | -71.43% |
| Jun'25 | 0.00 | -0.09 | -0.09 | -145.00% | -43.75% |
| Mar'25 | 0.00 | 0.39 | 0.20 | +266.67% | N/A |
| Dec'24 | 0.00 | -0.08 | -0.12 | -57.14% | -57.14% |
| Sep'24 | 0.00 | -0.24 | -0.28 | -133.33% | N/A |
| Jun'24 | 0.00 | -0.12 | -0.16 | N/A | N/A |
Employee costs remained stable at ₹0.04 crores in Q3 FY26, consistent with Q2 FY26 but representing a 33.33% increase from the ₹0.03 crores incurred in Q3 FY25. This suggests the company is maintaining a skeletal staff despite generating no revenue. The operating loss before depreciation, interest, and tax stood at ₹0.05 crores, improving from ₹0.08 crores in the previous quarter but still indicative of a business burning cash with no clear path to profitability.
The one anomaly in recent quarters was Q4 FY25, when the company reported a profit of ₹0.20 crores driven entirely by other income of ₹0.47 crores—likely a one-time gain that temporarily masked the underlying operational distress. Without such windfalls, the company has consistently posted losses, with nine-month FY26 cumulative losses reaching ₹0.22 crores.
Critical Concern: Zero Revenue Generation
Popular Estate Management has reported zero sales revenue for seven consecutive quarters through Q3 FY26. This prolonged operational shutdown, combined with ongoing employee costs and administrative expenses, raises fundamental questions about the company's business model and future viability. Without a clear path to revenue generation, the company faces an existential crisis.
Balance Sheet: Eroding Shareholder Value
The company's balance sheet as of March 2025 reveals a deteriorating financial position. Shareholder funds stood at ₹42.43 crores, down from ₹42.78 crores in March 2024 and ₹43.46 crores in March 2023—a steady erosion of equity reflecting cumulative losses. With reserves and surplus declining from ₹28.78 crores to ₹28.43 crores, the company is slowly consuming its capital base.
Long-term debt remained relatively stable at ₹7.97 crores as of March 2025, compared to ₹7.98 crores the previous year, resulting in a modest net debt-to-equity ratio of 0.19. While the low leverage is a positive, it also reflects the company's inability to deploy capital productively. Fixed assets dropped sharply from ₹0.77 crores in March 2024 to just ₹0.06 crores in March 2025, suggesting asset disposals or write-downs that further limit operational capacity.
Return on equity (ROE) stood at a dismal -0.50% as of the latest quarter, a stark indicator of value destruction. The average ROE over recent years has been effectively zero, underscoring the company's chronic inability to generate returns for shareholders. Return on capital employed (ROCE) fared marginally better at -1.35% in the latest period, but the negative figure confirms that the company is destroying capital rather than creating value.
Balance Sheet Snapshot
Shareholder Funds: ₹42.43 crores (down from ₹42.78 crores YoY)
Long-Term Debt: ₹7.97 crores (Debt-to-Equity: 0.19)
Fixed Assets: ₹0.06 crores (down 92.21% from ₹0.77 crores)
Current Assets: ₹48.97 crores (stable)
ROE: -0.50% (value destruction)
ROCE: -1.35% (capital misallocation)
Peer Comparison: Lagging Across All Metrics
When compared to peers in the construction sector, Popular Estate Management's financial distress becomes even more apparent. While several peers also face challenges, Popular Estate's complete absence of revenue and negative returns stand out.
| Company | P/E (TTM) | P/BV | ROE (%) | Debt-to-Equity | Market Cap (₹ Cr) |
|---|---|---|---|---|---|
| Popular Estate | NA (Loss Making) | 0.59 | 0.0% | 0.19 | 25.00 |
| Nacdac Infra | 7.50 | 1.18 | 17.04% | 0.26 | Higher |
| SKIL Infrastructure | 7.14 | 0.14 | 0.0% | 10.09 | Higher |
| Vivanta Industries | NA (Loss Making) | 1.50 | 4.22% | 1.03 | Higher |
| Kridhan Infra | 31.15 | -0.12 | 0.0% | -0.08 | Higher |
| Madhucon Projects | NA (Loss Making) | -0.02 | 0.0% | -1.95 | Higher |
Popular Estate's price-to-book value of 0.59x suggests the market values the company at a 41% discount to its stated book value, reflecting deep scepticism about asset quality and future earnings potential. While Nacdac Infrastructure boasts a healthy 17.04% ROE and profitable operations, Popular Estate's zero ROE and consistent losses place it among the weakest performers in the peer group. The company ranks fifth in market capitalisation among the six peers analysed, with only Madhucon Projects potentially smaller.
Valuation Analysis: Risky and Uninvestable
Popular Estate Management's valuation metrics paint a picture of a company that financial models struggle to assess due to its lack of profitability and revenue. The P/E ratio is listed as "NA (Loss Making)", reflecting the company's inability to generate positive earnings. With a price-to-book value of 0.59x, the stock trades at a significant discount to book value, but this discount appears justified given the ongoing value destruction.
The company's enterprise value-to-EBITDA ratio stands at -32.92x, a meaningless figure given negative EBITDA. Similarly, EV-to-EBIT is -32.92x, and EV-to-sales is not applicable due to zero revenue. The EV-to-capital employed ratio of 0.65x suggests the market values the entire enterprise at just 65% of its capital base—a clear vote of no confidence from investors.
The overall valuation grade is classified as "Risky", a designation the company has carried since July 2023. With no dividend payments (dividend yield is NA), zero institutional holdings, and no analyst coverage, Popular Estate operates in a liquidity desert with minimal investor interest. The stock's 52-week range of ₹17.12 to ₹29.70 shows significant volatility, with the current price of ₹17.70 hovering just 3.39% above the yearly low.
Shareholding Pattern: Stable Promoter Base, Zero Institutional Interest
The shareholding pattern reveals a company dominated by promoters with absolutely no institutional participation. Promoter holding has remained remarkably stable at 66.81% as of September 2025, with a marginal 0.01% decline in March 2025 being the only change over the past five quarters. The promoter group comprises 18 individuals from the Patel family, led by Kokilaben Chhganbhai Patel (8.61%), Ramanbhai Bholidas Patel (8.58%), and Mayurikaben Ramanlal Patel (7.19%).
| Quarter | Promoter % | FII % | MF % | Insurance % | Other DII % | Non-Institutional % |
|---|---|---|---|---|---|---|
| Sep'25 | 66.81% | 0.00% | 0.00% | 0.00% | 0.00% | 33.19% |
| Jun'25 | 66.81% | 0.00% | 0.00% | 0.00% | 0.00% | 33.19% |
| Mar'25 | 66.81% | 0.00% | 0.00% | 0.00% | 0.00% | 33.19% |
| Dec'24 | 66.82% | 0.00% | 0.00% | 0.00% | 0.00% | 33.18% |
| Sep'24 | 66.82% | 0.00% | 0.00% | 0.00% | 0.00% | 33.18% |
The complete absence of foreign institutional investors (FIIs), mutual funds, insurance companies, and other domestic institutional investors (DIIs) is telling. With institutional holdings at 0.0%, the stock lacks the credibility and liquidity that institutional participation typically provides. The remaining 33.19% is held by non-institutional investors, likely retail shareholders trapped in an illiquid, poorly performing stock. Positively, there is no promoter pledging, indicating the promoter group is not using shares as collateral for loans.
Stock Performance: Severe Underperformance Across All Timeframes
Popular Estate Management's stock performance has been disastrous across virtually every timeframe, with the shares underperforming both the Sensex and the broader construction sector. Over the past year, the stock has plummeted 38.90% while the Sensex gained 10.41%, resulting in a negative alpha of -49.31 percentage points. This severe underperformance reflects the market's complete loss of confidence in the company's ability to turn around operations.
| Period | Stock Return | Sensex Return | Alpha |
|---|---|---|---|
| 1 Day | -1.39% | -0.05% | -1.34% |
| 1 Week | -6.65% | +0.50% | -7.15% |
| 1 Month | -2.05% | +0.79% | -2.84% |
| 3 Months | -14.08% | +0.43% | -14.51% |
| 6 Months | -22.98% | +4.50% | -27.48% |
| YTD | -4.01% | -1.16% | -2.85% |
| 1 Year | -38.90% | +10.41% | -49.31% |
| 2 Years | -26.46% | +17.65% | -44.11% |
Short-term performance has been equally bleak. Over the past week, the stock declined 6.65%, underperforming the Sensex by 7.15 percentage points. The three-month return of -14.08% and six-month return of -22.98% demonstrate accelerating weakness, with the stock now trading just 3.39% above its 52-week low of ₹17.12. The stock is below all key moving averages—5-day (₹18.72), 20-day (₹18.90), 50-day (₹20.18), and 100-day (₹20.91)—confirming a firmly established downtrend.
Compared to the construction sector, which declined 18.88% over the past year, Popular Estate's 38.90% drop represents an underperformance of 20.02 percentage points. The stock's beta of 1.50 indicates it is 50% more volatile than the market, amplifying both gains and losses. With a volatility of 62.97% and a negative Sharpe ratio, the stock falls into the "High Risk Low Return" category—the worst possible combination for investors.
Technical Analysis: Firmly Bearish Across All Indicators
The technical picture for Popular Estate Management is unequivocally bearish. The stock's overall trend is classified as "Bearish" as of February 10, 2026, having deteriorated from "Mildly Bearish" the previous day. Both weekly and monthly MACD indicators signal bearish momentum, whilst Bollinger Bands show the stock trading near the lower band—a sign of persistent selling pressure and weak demand.
The Moving Average Convergence Divergence (MACD) on both weekly and monthly charts points to continued downward momentum. The Relative Strength Index (RSI) shows no clear signal, suggesting the stock is neither oversold nor overbought but rather trapped in a sustained downtrend. The Know Sure Thing (KST) indicator is bearish on the weekly timeframe and mildly bearish on the monthly, reinforcing the negative technical outlook.
Delivery volumes provide some insight into investor behaviour. The one-month delivery change of 24.44% suggests increased retail participation, but with the stock in freefall, this likely represents trapped investors rather than smart money accumulation. The most recent trading session saw delivery volume at 100.00% of total volume, compared to a five-day average of 99.66%, indicating genuine selling rather than speculative trading.
Quality Assessment: Does Not Qualify
Popular Estate Management's quality grade is "Does Not Qualify", reflecting its fundamental inability to meet basic standards of financial performance. The company's five-year sales growth rate is 0.00%, and its five-year EBIT growth is similarly 0.00%—stark evidence of a business in stasis. The average ROCE of 1.50% over recent years is woefully inadequate, whilst the average ROE of 0.0 confirms that shareholders have received no returns on their investment.
On the positive side, the company maintains a relatively healthy balance sheet with low leverage. The average debt-to-EBITDA ratio of 0.50 and net debt-to-equity of 0.19 indicate conservative financial management. There is no promoter pledging, eliminating one source of governance risk. However, these positives are overshadowed by the fundamental problem: the company generates no revenue and destroys shareholder value quarter after quarter.
Key Strengths
- Low debt levels with debt-to-equity of 0.19
- No promoter pledging of shares
- Stable promoter holding at 66.81%
- Adequate current assets of ₹48.97 crores
- Conservative leverage ratios
Key Concerns
- Zero revenue for seven consecutive quarters
- Persistent net losses with no turnaround plan visible
- Negative ROE of -0.50% destroying shareholder value
- Zero institutional investor interest
- Stock down 38.90% over past year with bearish technicals
- Fixed assets collapsed from ₹0.77 crores to ₹0.06 crores
- No clear business model or path to profitability
Outlook: What Lies Ahead
The outlook for Popular Estate Management remains deeply troubling without concrete signs of operational revival. The company's financial trend is classified as "Flat", but this understates the severity of the situation—when revenue is zero and losses are consistent, "flat" is a euphemism for "stagnant and deteriorating". For the stock to have any chance of recovery, the company would need to demonstrate a credible plan to restart revenue-generating activities, secure new projects, or pivot to a viable business model.
Positive Catalysts to Watch
- Announcement of new construction projects or contracts
- Revenue generation resumption in any form
- Strategic partnerships or joint ventures
- Asset monetisation to reduce losses
- Management commentary on turnaround strategy
Red Flags Requiring Monitoring
- Continued zero revenue in Q4 FY26
- Further erosion of shareholder funds
- Inability to articulate viable business plan
- Additional asset write-downs or disposals
- Breach of 52-week low at ₹17.12
- Any increase in debt or financial stress
Investors should closely monitor whether the company can generate any revenue in Q4 FY26 or provide guidance on future operations. Without a clear path forward, the stock risks further declines as patience runs out and remaining retail investors exit their positions. The technical setup suggests continued weakness, with the stock likely to test its 52-week low of ₹17.12 in the near term unless fundamental catalysts emerge.
The Verdict: Uninvestable Without Operational Revival
Score: 12/100
For Fresh Investors: Avoid completely. Popular Estate Management exhibits all the hallmarks of a distressed micro-cap with no visible path to recovery. Zero revenue generation for seven consecutive quarters, negative returns on equity and capital, and a stock price down 39% over the past year make this an uninvestable proposition until concrete operational improvements materialise.
For Existing Holders: Exit at the earliest opportunity. The company's inability to generate revenue, combined with persistent losses and bearish technical trends, suggests further downside risk. With the stock trading near 52-week lows and showing no signs of stabilisation, holding onto shares in hope of a turnaround appears increasingly futile.
Fair Value Estimate: Not calculable due to zero revenue and negative earnings. Current market price of ₹17.70 may still overvalue the company given operational realities.
The rating reflects fundamental operational failure, lack of revenue generation, negative returns, severe technical weakness, and absence of any credible turnaround catalyst. Until the company demonstrates ability to generate revenue and articulate a viable business plan, the stock remains a strong sell.
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.
