Suraj Estate Developers Ltd is Rated Sell

Current Rating and Its Significance

The current Sell rating indicates that MarketsMOJO’s assessment of Suraj Estate Developers Ltd suggests cautiousness for investors. This rating is derived from a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. It implies that the stock may underperform relative to the broader market or sector peers, and investors should consider this when making portfolio decisions.

Quality Assessment

As of 27 January 2026, Suraj Estate Developers Ltd holds an average quality grade. This reflects moderate operational efficiency and profitability metrics. The company’s ability to generate returns on equity remains subdued, with an average Return on Equity (ROE) of 9.68%, signalling limited profitability per unit of shareholders’ funds. Additionally, the firm’s capacity to service debt is constrained, evidenced by a high Debt to EBITDA ratio of 2.64 times. This elevated leverage ratio raises concerns about financial risk and the company’s flexibility to manage its obligations effectively.

Valuation Perspective

From a valuation standpoint, the stock is currently rated as very attractive. This suggests that, based on price metrics relative to earnings, book value, or cash flows, Suraj Estate Developers Ltd is trading at levels that could appeal to value-oriented investors. Despite this, the attractive valuation is tempered by the company’s operational challenges and financial risks, which may justify the cautious stance reflected in the Sell rating.

Financial Trend Analysis

The financial trend for Suraj Estate Developers Ltd is characterised as flat. The latest data shows stagnant or minimal growth in key financial indicators. For instance, the company reported operating cash flow for the year at a low of ₹-306.34 crores, indicating cash outflows from core operations. Interest expenses have surged by 67.91% over the latest six months, reaching ₹41.12 crores, further pressuring profitability. Dividend payout ratio stands at 0.00%, reflecting the company’s decision to conserve cash amid challenging conditions. These factors collectively point to a lack of positive momentum in the company’s financial performance.

Technical Outlook

The technical grade for the stock is bearish, signalling downward momentum in the share price. As of 27 January 2026, Suraj Estate Developers Ltd has delivered a 1-year return of -51.55%, significantly underperforming benchmark indices such as the BSE500 over comparable periods. Shorter-term returns also reflect weakness, with declines of -7.80% over one week and -12.48% over one month. This negative price action aligns with the technical assessment and reinforces the Sell rating.

Stock Performance and Market Sentiment

Suraj Estate Developers Ltd is classified as a small-cap stock within the realty sector. Despite its size, domestic mutual funds hold no stake in the company, which may indicate limited institutional confidence or concerns about the company’s prospects at current price levels. The stock’s performance has been below par both in the near and long term, with a 3-month return of -24.42% and a 6-month return of -33.41%. Year-to-date losses stand at -20.04%, underscoring ongoing challenges in regaining investor favour.

Implications for Investors

For investors, the Sell rating suggests prudence. While the valuation appears attractive, the combination of average quality, flat financial trends, and bearish technical signals points to potential risks ahead. The company’s high leverage and weak cash flow generation further complicate the outlook. Investors should weigh these factors carefully against their risk tolerance and investment horizon before considering exposure to Suraj Estate Developers Ltd.

Summary of Key Metrics as of 27 January 2026

• Mojo Score: 40.0 (Sell Grade)


• Debt to EBITDA Ratio: 2.64 times


• Return on Equity (avg): 9.68%


• Operating Cash Flow (yearly): ₹-306.34 crores


• Interest Expense (latest 6 months): ₹41.12 crores (up 67.91%)


• Dividend Payout Ratio: 0.00%


• 1-Year Stock Return: -51.55%


• 6-Month Stock Return: -33.41%


• 3-Month Stock Return: -24.42%


• 1-Month Stock Return: -12.48%


• 1-Week Stock Return: -7.80%


• 1-Day Stock Return: -0.07%

Contextualising the Rating

It is important to understand that the Sell rating does not necessarily imply an immediate sell-off but rather a cautionary stance based on current data. The rating reflects a synthesis of the company’s operational challenges, financial constraints, and market sentiment as of 27 January 2026. Investors should consider this rating as part of a broader due diligence process, factoring in their own investment goals and risk appetite.

Sector and Market Considerations

The realty sector has faced headwinds in recent years, including regulatory changes, liquidity pressures, and fluctuating demand. Suraj Estate Developers Ltd’s performance must be viewed against this backdrop. While the sector may offer opportunities, the company’s specific financial and technical indicators suggest it is currently not positioned favourably relative to peers. This reinforces the prudence of the Sell rating in the current market environment.

Conclusion

In summary, Suraj Estate Developers Ltd’s current Sell rating by MarketsMOJO, last updated on 19 Nov 2025, is supported by a combination of average quality, very attractive valuation, flat financial trends, and bearish technical signals as of 27 January 2026. The stock’s significant negative returns over multiple time frames and high leverage further justify a cautious approach. Investors should carefully evaluate these factors alongside their portfolio strategy before considering any position in this stock.

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