Recent Price Movement and Market Context
On 21 Nov 2025, Embassy Developments’ share price touched Rs.80.6, the lowest level recorded in the past year. This price point comes after four consecutive days of declines, during which the stock has delivered a cumulative return of -4.89%. The day’s performance showed a further dip of -1.70%, underperforming the Realty sector by -1.26%. Notably, the stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent bearish trend.
In contrast, the broader market has shown relative strength. The Sensex opened lower at 85,347.40, down by 285.28 points (-0.33%), but has since recovered slightly to trade at 85,512.03 (-0.14%). The index remains close to its 52-week high of 85,801.70, just 0.34% away, and is supported by bullish moving averages with the 50-day DMA positioned above the 200-day DMA. This divergence highlights the specific challenges faced by Embassy Developments within an otherwise resilient market environment.
Financial Performance and Growth Trends
Over the last year, Embassy Developments has recorded a stock return of -31.84%, contrasting with the Sensex’s positive return of 10.80% over the same period. The company’s 52-week high was Rs.163.7, indicating a substantial decline of over 50% from that peak.
Examining the company’s financials reveals several areas of concern. The latest quarterly results for September 2025 show a net sales figure of Rs.493.11 crores, which is down by 16.8% compared to the previous four-quarter average. The company reported a net loss after tax (PAT) of Rs.-153.32 crores, representing a fall of 840.7% relative to the prior four-quarter average. Interest expenses for the latest six months stood at Rs.295.91 crores, reflecting a growth of 20.7%, which adds to the financial strain.
Under the radar no more! This Large Cap from Cement is emerging from turnaround with solid fundamentals intact. Discover it while it's still relatively hidden!
- - Hidden turnaround gem
- - Solid fundamentals confirmed
- - Large Cap opportunity
Long-Term Growth and Valuation Metrics
Over the past five years, Embassy Developments’ net sales have grown at an annual rate of 11.02%, while operating profit has expanded at 17.21% annually. Despite this growth, the company’s long-term fundamental strength is considered weak, as reflected in its operating losses and limited ability to service debt. The average EBIT to interest ratio stands at -18.11, indicating challenges in covering interest obligations from earnings before interest and tax.
The company’s return on capital employed (ROCE) is reported at 0.1%, which is notably low. Additionally, the enterprise value to capital employed ratio is 1.1, suggesting a valuation that may be considered expensive relative to the company’s capital base. Compared to peers, Embassy Developments is trading at a discount to average historical valuations, yet this has not translated into positive returns for shareholders.
Shareholding and Market Pressure
Another factor contributing to the stock’s downward pressure is the high proportion of promoter shares pledged, which stands at 33.58%. In declining markets, such a level of pledged shares can exacerbate selling pressure, as promoters may be compelled to liquidate holdings to meet margin requirements or debt obligations.
Performance over longer time horizons also reflects challenges. The stock has underperformed the BSE500 index over the last three years, one year, and three months, indicating persistent relative weakness in comparison to a broad market benchmark.
Embassy Developments or something better? Our SwitchER feature analyzes this small-cap Realty stock and recommends superior alternatives based on fundamentals, momentum, and value!
- - SwitchER analysis complete
- - Superior alternatives found
- - Multi-parameter evaluation
Summary of Current Position
Embassy Developments’ stock has reached a critical low point at Rs.80.6, reflecting a combination of subdued sales, significant losses, rising interest expenses, and valuation concerns. The stock’s performance contrasts sharply with the broader market’s relative strength, underscoring company-specific pressures. The high level of pledged promoter shares adds an additional layer of market sensitivity, particularly in volatile conditions.
While the company has demonstrated some growth in net sales and operating profit over the longer term, recent quarterly results and financial ratios highlight ongoing difficulties in profitability and debt servicing. The stock’s position below all major moving averages further illustrates the prevailing negative momentum in price action.
Limited Time Only! Subscribe for Rs. 12,999 and get 1 Year of MojoOne + an Additional Year Completely FREE. Don't miss out on this exclusive offer. Claim Your Free Year →
