Understanding the Current Rating
The 'Hold' rating assigned to Ansal Buildwell Ltd indicates a neutral stance for investors, suggesting that the stock is expected to perform in line with the broader market or sector averages in the near term. This rating is based on a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. Each of these factors contributes to the overall assessment of the company’s investment potential.
Quality Assessment
As of 19 January 2026, Ansal Buildwell’s quality grade is considered below average. This reflects some challenges in the company’s fundamental strength, particularly in its long-term growth metrics. The average Return on Capital Employed (ROCE) stands at 9.97%, which is modest and indicates limited efficiency in generating returns from its capital base. Additionally, the company’s net sales have grown at an annual rate of 7.29% over the past five years, signalling moderate expansion but not robust growth. Investors should note that while the company maintains operational stability, its fundamental quality does not currently position it as a high-growth or high-quality stock within the realty sector.
Valuation Perspective
Valuation is a strong point for Ansal Buildwell at present. The company holds a very attractive valuation grade, supported by a low enterprise value to capital employed ratio of 0.7. This suggests that the stock is trading at a discount relative to its peers and historical averages, potentially offering value for investors seeking exposure to the real estate sector at a reasonable price. Despite the stock’s underperformance over the past year, with a return of -18.95%, the valuation metrics imply that the market may be pricing in risks or challenges that could present buying opportunities if fundamentals improve.
Financial Trend and Recent Performance
The financial trend for Ansal Buildwell is currently very positive, reflecting encouraging recent results. The company reported a remarkable growth in net profit of 259.35% in the quarter ending September 2025, with a quarterly PAT of ₹4.65 crores, representing a staggering 1165.3% increase compared to the previous four-quarter average. Operating profit to interest coverage also reached a high of 6.43 times, indicating strong operational cash flow relative to debt servicing costs. Net sales for the quarter hit a peak of ₹15.85 crores, underscoring improved business momentum. However, it is important to balance this with the fact that over the past year, profits have declined by 23.9%, and the stock has underperformed the broader market, which returned 7.39% over the same period.
Technical Analysis
From a technical standpoint, Ansal Buildwell exhibits a mildly bullish grade. The stock has shown some positive price movement recently, with a 1-month return of +4.29% and a 3-month return of +15.38%. Year-to-date, the stock has gained 2.08%, while the one-week performance stands at +0.96%. These indicators suggest some upward momentum, although the stock remains volatile and has experienced a 6-month decline of 4.06%. The technical outlook supports the 'Hold' rating by signalling cautious optimism without strong conviction for a sustained rally.
Market Position and Shareholding
Ansal Buildwell is classified as a microcap company within the realty sector. The majority shareholding is held by promoters, which can provide stability but also concentrates control. The stock’s recent underperformance relative to the BSE500 benchmark highlights the challenges it faces in regaining investor confidence and market share. Investors should weigh these factors carefully when considering the stock’s risk and reward profile.
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Implications for Investors
The 'Hold' rating on Ansal Buildwell Ltd suggests that investors should maintain their current positions without expecting significant near-term gains or losses. The company’s very attractive valuation and positive recent financial trends offer some upside potential, but the below-average quality and past underperformance warrant caution. Investors looking for stability may find the stock suitable as part of a diversified portfolio, while those seeking aggressive growth might consider alternative opportunities.
Summary of Key Metrics as of 19 January 2026
To summarise, the latest data shows:
- Mojo Score of 58.0, corresponding to a 'Hold' grade
- Quality grade below average, reflecting modest ROCE of 9.97%
- Very attractive valuation with EV/Capital Employed at 0.7
- Financial grade very positive, driven by strong quarterly profit growth
- Technical grade mildly bullish, with recent positive price momentum
- Stock returns over 1 year at -18.95%, underperforming the BSE500 benchmark
Investors should monitor upcoming quarterly results and sector developments to reassess the stock’s outlook. The current 'Hold' rating reflects a balanced view, recognising both the opportunities and risks inherent in Ansal Buildwell’s business and market environment.
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