Recent Price Movement and Market Context
On 8 December 2025, Embassy Developments touched an intraday low of Rs.69.81, representing a 2.38% decline on the day and underperforming its sector by 1.76%. This latest low comes after the stock has experienced a cumulative return of -11.65% over the last nine trading days. The current price level stands considerably below the stock’s 52-week high of Rs.163.70, highlighting a steep downward trajectory over the past year.
The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling persistent bearish momentum. This contrasts with the broader market, where the Sensex opened flat but traded slightly lower by 0.26% at 85,486.18 points, remaining within 0.79% of its own 52-week high of 86,159.02. The Sensex continues to trade above its 50-day moving average, which itself is positioned above the 200-day moving average, indicating a generally bullish market environment despite the underperformance of Embassy Developments.
Financial Performance and Operational Indicators
Embassy Developments’ financial results have shown notable challenges in recent quarters. The company reported a net loss after tax (PAT) of Rs.153.32 crores in the latest quarter, 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, reflecting 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, indicating rising financial costs.
The company’s return on capital employed (ROCE) is reported at 0.1%, suggesting limited efficiency in generating returns from its capital base. Additionally, the enterprise value to capital employed ratio is approximately 1, which points to a valuation that may be considered elevated relative to the company’s capital utilisation. Over the past year, Embassy Developments has generated a total return of -46.78%, significantly lagging behind the Sensex’s 4.58% return during the same period.
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Long-Term Growth and Debt Servicing Capacity
Over the last five years, Embassy Developments’ net sales have grown at an annual rate of 11.02%, while operating profit has shown a growth rate of 17.21%. Despite these figures, the company’s ability to service its debt remains constrained, as reflected by an average EBIT to interest ratio of -18.11. This negative ratio indicates that earnings before interest and tax have been insufficient to cover interest expenses, raising concerns about financial sustainability.
Promoter shareholding includes a significant proportion of pledged shares, with 33.58% of promoter holdings under pledge. In volatile or declining markets, such a high level of pledged shares can exert additional downward pressure on the stock price, as forced selling or margin calls may occur.
Embassy Developments has also underperformed relative to the BSE500 index over multiple time horizons, including the last three years, one year, and three months, underscoring a pattern of below-par performance in both the near and long term.
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Sectoral and Market Comparison
Within the realty sector, Embassy Developments’ recent performance contrasts with broader market trends. While the Sensex maintains a position near its 52-week high and trades above key moving averages, Embassy Developments continues to trade below all major moving averages, reflecting a divergence from the general market sentiment. The stock’s market capitalisation grade is noted as 3, indicating a mid-tier market cap relative to peers.
The stock’s valuation is currently at a discount compared to the average historical valuations of its peers, which may reflect the market’s assessment of the company’s financial and operational challenges. The combination of subdued sales, rising interest costs, and negative profitability metrics has contributed to the stock’s downward trajectory over the past year.
Summary of Key Metrics
To summarise, Embassy Developments’ stock price has declined to Rs.69.81, marking a 52-week low after a sustained period of losses. The stock has recorded a total return of -46.78% over the past year, while the Sensex has shown a positive return of 4.58% in the same timeframe. The company’s quarterly PAT stood at a loss of Rs.153.32 crores, with net sales of Rs.493.11 crores and interest expenses rising to Rs.295.91 crores over the latest six months. The stock’s trading below all major moving averages and the high proportion of pledged promoter shares add to the current pressures on the share price.
These factors collectively illustrate the challenges Embassy Developments faces in the current market environment, as reflected in its recent price performance and financial indicators.
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