Recent Price Movement and Market Context
On 24 Nov 2025, Embassy Developments touched an intraday low of Rs.77.5, closing the day with a decline of 2.02%. This marks the fifth consecutive day of losses for the stock, which has recorded a cumulative return of -8.08% over this period. The stock’s current price stands well below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained downward momentum.
In contrast, the broader market has shown positive trends. The Sensex opened 88.12 points higher and was trading at 85,406.59, a 0.2% gain on the day. The index remains close to its 52-week high of 85,801.70, just 0.46% away, supported by a three-week consecutive rise and a 2.63% gain over that period. Mid-cap stocks have also contributed positively, with the BSE Mid Cap index gaining 0.24% on the same day.
Long-Term Price Performance
Over the past year, Embassy Developments has experienced a return of -34.40%, significantly underperforming the Sensex, which has recorded a 7.95% gain during the same timeframe. The stock’s 52-week high was Rs.163.7, illustrating the extent of the decline to its current level. This underperformance extends beyond the last year, with the stock lagging behind the BSE500 index over the last three years, one year, and three months.
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Financial Performance and Profitability Trends
Embassy Developments’ recent quarterly results reveal a challenging financial landscape. The company reported a net loss after tax (PAT) of Rs. -153.32 crores, representing a decline of 840.7% compared to the average of the previous four quarters. Net sales for the quarter stood at Rs.493.11 crores, showing a reduction of 16.8% relative to the prior four-quarter average. Meanwhile, interest expenses for the latest six months increased by 20.7%, reaching Rs.295.91 crores.
The company’s return on capital employed (ROCE) is reported at 0.1%, reflecting limited efficiency in generating returns from its capital base. Additionally, the enterprise value to capital employed ratio stands at 1.1, suggesting a valuation that is relatively expensive when considering the company’s current earnings and capital utilisation.
Debt Servicing and Shareholding Concerns
Embassy Developments’ ability to service its debt remains under pressure, with an average EBIT to interest ratio of -18.11, indicating that earnings before interest and tax are insufficient to cover interest expenses. This weak coverage ratio points to financial strain in managing debt obligations.
Furthermore, 33.58% of promoter shares are pledged, a factor that can exert additional downward pressure on the stock price during periods of market volatility or declining share prices. High levels of pledged shares often raise concerns about potential forced selling if margin calls arise.
Growth and Operational Metrics
Over the last 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 these growth figures, the company’s long-term fundamental strength is considered weak, as reflected in its operating losses and subdued profitability metrics.
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Comparative Valuation and Market Position
Despite the recent decline, Embassy Developments is trading at a discount relative to its peers’ average historical valuations. However, this valuation discount has not translated into positive returns, as the stock’s profits have fallen by 272.2% over the past year. The company’s performance in both the near and long term remains below market benchmarks, reflecting ongoing challenges in its business environment.
The stock’s underperformance relative to the broader market and sector indices highlights the difficulties faced by Embassy Developments in maintaining competitive positioning and financial stability.
Summary of Current Market Standing
Embassy Developments’ stock price reaching Rs.77.5, its lowest level in 52 weeks, underscores the pressures facing the company amid a generally positive market backdrop. While the Sensex and mid-cap indices have shown gains, Embassy Developments continues to experience declines driven by financial results, debt servicing challenges, and shareholding structure concerns.
The stock’s position below all major moving averages and its sustained downward trend over recent days reflect the prevailing market sentiment and the company’s current financial realities.
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