Marathon Nextgen Realty Ltd is Rated Sell

Current Rating and Its Significance

MarketsMOJO currently assigns Marathon Nextgen Realty Ltd a Sell rating, indicating a cautious stance towards the stock. This rating suggests that investors should consider reducing exposure or avoiding new purchases at present, based on a comprehensive evaluation of the company's quality, valuation, financial trend, and technical indicators. The rating was revised on 17 Nov 2025, moving from a Strong Sell to Sell, reflecting a modest improvement in the company’s outlook, but still signalling significant concerns.

How the Stock Looks Today: Fundamentals and Returns

As of 10 January 2026, Marathon Nextgen Realty Ltd exhibits a mixed financial profile. The company’s Mojo Score stands at 36.0, categorised under the Sell grade, which is a moderate improvement from the previous score of 27. Despite this, the stock’s recent price performance has been weak, with a one-year return of -21.90%. This underperformance is notable when compared to the broader market benchmark, the BSE500, which has delivered a positive 6.14% return over the same period.

Current returns also show a downward trend in the short term, with the stock declining by 1.29% on the latest trading day and falling 29.19% over the past six months. Year-to-date, the stock has dropped 10.60%, signalling ongoing challenges in regaining investor confidence.

Quality Assessment

The company’s quality grade is assessed as average. Marathon Nextgen Realty Ltd faces a high Debt to EBITDA ratio of 5.25 times, indicating a low ability to service its debt obligations comfortably. This elevated leverage level raises concerns about financial risk, especially in a sector sensitive to economic cycles and interest rate fluctuations.

Profitability metrics also reflect modest returns. The average Return on Capital Employed (ROCE) is 9.80%, which suggests limited efficiency in generating profits from the combined equity and debt capital employed. Additionally, the Return on Equity (ROE) stands at 10.3%, which is moderate but not compelling enough to offset the risks associated with the company’s capital structure.

Valuation Considerations

Marathon Nextgen Realty Ltd is currently viewed as very expensive based on valuation metrics. The stock trades at a Price to Book (P/B) ratio of 1.5, which is high relative to its historical averages and peers in the realty sector. This elevated valuation implies that the market expects strong future growth or improved profitability, which the current fundamentals do not fully support.

Despite the high valuation, the stock is trading at a discount compared to its peers’ average historical valuations, suggesting some relative value. However, investors should be cautious given the company’s recent underperformance and the broader sector challenges.

Financial Trend and Growth Outlook

The financial trend for Marathon Nextgen Realty Ltd shows a positive trajectory in profitability, with operating profit growing at an annualised rate of 18.57% over the last five years. Furthermore, profits have increased by 29.5% over the past year, signalling some operational improvements despite the stock’s price decline.

Nevertheless, the company’s growth is tempered by its low ability to service debt and modest returns on capital, which may limit its capacity to sustain this growth momentum in the long term.

Technical Analysis

The technical grade for the stock is bearish, reflecting negative price momentum and downward trends in recent trading sessions. The stock’s consistent declines over one week (-6.28%), one month (-9.72%), and three months (-13.26%) reinforce this bearish outlook. Such technical weakness often signals investor caution and may deter short-term buying interest.

Investors should consider these technical signals alongside fundamental factors when evaluating the stock’s potential.

What This Rating Means for Investors

The Sell rating on Marathon Nextgen Realty Ltd advises investors to approach the stock with caution. The combination of average quality, very expensive valuation, positive but constrained financial trends, and bearish technicals suggests that the stock may face continued headwinds in the near term.

For existing shareholders, this rating signals the importance of closely monitoring the company’s debt levels and profitability metrics, as well as broader market conditions affecting the realty sector. Prospective investors should weigh the risks of high leverage and valuation against the company’s growth prospects before considering entry.

In summary, while there are some positive signs in profit growth, the overall financial and technical picture supports a conservative stance, consistent with the Sell recommendation.

Sector and Market Context

Marathon Nextgen Realty Ltd operates within the realty sector, which has experienced volatility due to economic cycles, interest rate changes, and regulatory factors. The stock’s underperformance relative to the BSE500 index highlights sector-specific challenges and company-specific risks.

Investors should consider the broader market environment and sector outlook when evaluating the stock’s potential, as external factors may significantly influence future performance.

Summary of Key Metrics as of 10 January 2026

• Mojo Score: 36.0 (Sell grade)


• Debt to EBITDA Ratio: 5.25 times (high leverage)


• Return on Capital Employed (avg): 9.80%


• Return on Equity: 10.3%


• Price to Book Value: 1.5 (very expensive)


• Operating Profit Growth (5 years annualised): 18.57%


• Profit Growth (1 year): 29.5%


• Stock Returns (1 year): -21.90%


• BSE500 Returns (1 year): 6.14%

These figures provide a comprehensive snapshot of the company’s current financial health and market performance, underpinning the Sell rating.

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