Recent Price Movement and Market Context
On 24 Nov 2025, Embassy Developments touched an intraday low of Rs.77.5, representing a 2.15% decline on the day and a 2.02% drop compared to the previous close. This marks the lowest price level for the stock in the past year, down from its 52-week high of Rs.163.7. The stock has been on a losing streak for five consecutive trading sessions, resulting in an 8.08% return loss over this period.
The company’s share price is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a persistent bearish trend. In comparison, the Sensex index has shown resilience, trading 0.2% higher at 85,406.59 and nearing its own 52-week high, supported by a three-week consecutive rise and a 2.63% gain over that period. Mid-cap stocks are also leading the market with a 0.24% gain in the BSE Mid Cap index, highlighting the relative underperformance of Embassy Developments within the realty sector.
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Financial Performance and Growth Trends
Over the last year, Embassy Developments has recorded a total return of -34.40%, contrasting with the Sensex’s positive 7.95% return in the same period. The company’s net sales have shown a compound annual growth rate of 11.02% over the past five years, while operating profit has grown at an annual rate of 17.21%. Despite these growth figures, the company’s profitability metrics have been under strain.
In the most recent quarter ending September 2025, the company reported a net sales figure of Rs.493.11 crores, which is 16.8% lower than the average of the previous four quarters. The quarterly profit after tax (PAT) stood at a loss of Rs.153.32 crores, reflecting a decline of 840.7% compared to the prior four-quarter average. Interest expenses for the latest six months have risen by 20.70%, reaching Rs.295.91 crores, further pressuring the company’s earnings.
Balance Sheet and Valuation Considerations
Embassy Developments’ return on capital employed (ROCE) is reported at 0.1%, indicating limited efficiency in generating returns from its capital base. The enterprise value to capital employed ratio stands at 1.1, suggesting a valuation that is relatively expensive when compared to the company’s current capital utilisation. However, the stock is trading at a discount relative to its peers’ historical average valuations, reflecting market caution.
Debt servicing capacity remains a concern, with the company’s average EBIT to interest ratio at -18.11, signalling challenges in covering interest obligations from operating earnings. Additionally, 33.58% of promoter shares are pledged, which can exert additional downward pressure on the stock price during periods of market volatility.
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Long-Term and Sectoral Performance
Embassy Developments has underperformed not only in the recent year but also over longer time horizons. The stock’s returns lag behind the BSE500 index across the last three years, one year, and three months. This underperformance is notable within the realty sector, where other companies have shown comparatively stronger recovery and growth trajectories.
While the broader market and mid-cap indices have demonstrated upward momentum, Embassy Developments continues to face headwinds that have kept its share price subdued. The company’s financial metrics and valuation indicators reflect ongoing challenges that have contributed to the stock’s decline to its current 52-week low.
Summary of Key Metrics
To summarise, Embassy Developments’ stock price at Rs.77.5 represents a significant low point within the last year, down from Rs.163.7 at its peak. The stock’s five-day losing streak and underperformance relative to sector and market indices highlight persistent pressures. Financial results from recent quarters show contraction in sales and profitability, alongside rising interest costs and a weak debt servicing ratio. The company’s valuation metrics and pledged promoter shares add further context to the stock’s current market position.
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