Recent Price Movement and Market Context
On 3 December 2025, Embassy Developments’ share price touched Rs.74.11, its lowest level in the past year. This price point comes after six consecutive trading sessions of declines, cumulatively resulting in a loss of 6.29% over this period. The stock’s performance today lagged behind the Realty sector by approximately 1.62%, signalling relative weakness within its industry group.
Notably, Embassy Developments is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning indicates a persistent downward momentum and a lack of short- to long-term price support.
In contrast, the broader market index, Sensex, experienced a modest decline of 0.29% on the same day, closing at 84,895.54 points. The Sensex remains close to its 52-week high, trading just 1.49% below the peak of 86,159.02, and maintains a bullish stance with the 50-day moving average positioned above the 200-day moving average.
Long-Term Performance Comparison
Over the last twelve months, Embassy Developments has recorded a total return of -45.69%, a stark contrast to the Sensex’s positive return of 5.02% during the same timeframe. This divergence highlights the stock’s underperformance relative to the broader market.
The stock’s 52-week high was Rs.163.70, indicating a substantial decline of over 54% from that peak to the current low. This downward trajectory has also extended over multiple years, with the stock underperforming the BSE500 index across one-year, three-year, and three-month periods.
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Financial Performance and Profitability Trends
Embassy Developments’ recent quarterly results reveal significant challenges in profitability. The Profit Before Tax excluding Other Income (PBT LESS OI) for the quarter stood at a loss of Rs.196.29 crore, representing a decline of 118.9% compared to the average of the previous four quarters. Similarly, the Profit After Tax (PAT) for the quarter was a loss of Rs.153.32 crore, reflecting a fall of 840.7% relative to the prior four-quarter average.
Interest expenses have also shown an upward trend, with the latest six-month period recording Rs.295.91 crore in interest costs, an increase of 20.70%. This rise in interest burden further pressures the company’s earnings and cash flow.
Over the past five years, the company’s net sales have grown at an annual rate of 11.02%, while operating profit has expanded at 17.21% annually. Despite these growth rates, the company’s long-term fundamental strength remains weak, as indicated by a negative average EBIT to interest ratio of -18.11, signalling difficulties in servicing debt obligations.
Valuation and Capital Efficiency
Embassy Developments’ return on capital employed (ROCE) is reported at 0.1%, suggesting limited efficiency in generating returns from its capital base. The enterprise value to capital employed ratio stands at 1, indicating a valuation that is relatively high given the company’s current capital utilisation.
Compared to its peers, the stock is trading at a discount relative to their average historical valuations. However, this discount accompanies a period of significant profit contraction, with profits falling by 272.2% over the past year.
Shareholding and Market Pressure
Promoter shareholding includes a substantial 33.58% of shares pledged. In declining market conditions, a high proportion of pledged shares can exert additional downward pressure on the stock price, as forced selling or margin calls may occur.
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Sector and Industry Considerations
Operating within the Realty sector, Embassy Developments faces a competitive environment where market dynamics and capital intensity play significant roles. The company’s performance contrasts with the broader sector trends, as it has underperformed the Realty sector index in recent months.
While the Sensex and many sector indices maintain levels near their yearly highs, Embassy Developments’ stock price trajectory reflects ongoing pressures specific to the company’s financial health and market positioning.
Summary of Key Metrics
To summarise, Embassy Developments’ stock has reached Rs.74.11, its lowest level in 52 weeks, following a six-day losing streak and a year-to-date return of -45.69%. The company’s quarterly financials show substantial losses and rising interest costs, while long-term growth rates in sales and operating profit remain modest. The stock trades below all major moving averages, and a significant portion of promoter shares are pledged, adding to market pressures.
These factors collectively contribute to the current valuation and market sentiment surrounding Embassy Developments, positioning the stock at a notable low point within its recent trading history.
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