Stock Price Movement and Market Context
On 16 Dec 2025, Embassy Developments' share price recorded an intraday low of Rs.64.56, representing a fall of 4.99% on the day. The stock has been on a downward trajectory for two consecutive sessions, resulting in a cumulative return decline of 10.93% over this period. This underperformance extends beyond the company’s own sector, with the stock lagging the Realty sector by 4.56% today.
The current price level is notably below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating sustained weakness in the stock’s short- and long-term price trends.
In contrast, the broader market index, Sensex, opened lower by 187.75 points and was trading at 84,878.72, down 0.39%. Despite this minor setback, Sensex remains close to its 52-week high of 86,159.02, just 1.51% away, and is supported by bullish moving averages with the 50-day average above the 200-day average.
Long-Term Performance and Valuation
Over the past year, Embassy Developments has experienced a substantial decline in stock value, with returns of -50.90%, contrasting with the Sensex’s positive 3.81% performance during the same period. The stock’s 52-week high was Rs.163.70, highlighting the extent of the recent price erosion.
The company’s valuation metrics reflect a challenging environment. The return on capital employed (ROCE) stands at a marginal 0.1%, while the enterprise value to capital employed ratio is 0.9, suggesting a relatively expensive valuation compared to the company’s capital base. Despite this, the stock is trading at a discount relative to its peers’ average historical valuations.
Quarter after quarter, this Small Cap from the Lifestyle sector delivers without fail! Just added to our Reliable Performers with proven staying power. Stability meets growth here beautifully.
- - Consistent quarterly delivery
- - Proven staying power
- - Stability with growth
See the Consistent Performer →
Financial Results and Profitability Trends
Recent quarterly results reveal further pressures on Embassy Developments’ financial health. The company reported a net loss after tax (PAT) of Rs. -153.32 crores, which represents 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.
Interest expenses have risen, with the latest six-month figure at Rs.295.91 crores, reflecting a growth of 20.70%. This increase in interest burden, combined with operating losses, has contributed to a weak EBIT to interest coverage ratio averaging -18.11, indicating challenges in servicing debt obligations.
Shareholding and Market Pressure
Promoter shareholding includes a significant proportion of pledged shares, amounting to 33.58%. In declining market conditions, such a high level of pledged shares can exert additional downward pressure on the stock price, as forced selling or margin calls may arise.
Over the longer term, Embassy Developments has underperformed key benchmarks such as the BSE500 index across multiple time frames, including the last three years, one year, and three months, reflecting persistent challenges in both near- and medium-term performance.
Considering Embassy Developments ? Wait! SwitchER has found potentially better options in Realty and beyond. Compare this small-cap with top-rated alternatives now!
- - Better options discovered
- - Realty + beyond scope
- - Top-rated alternatives ready
Sector and Industry Positioning
Embassy Developments operates within the Realty industry and sector, which has seen mixed performance in recent months. While the broader market indices maintain levels near their yearly highs, the company’s stock has diverged significantly, reflecting company-specific factors rather than sector-wide trends.
The company’s net sales have grown at an annual rate of 11.02% over the past five years, while operating profit has shown a growth rate of 17.21% during the same period. However, these growth rates have not translated into sustained profitability or stock price appreciation, as evidenced by the recent financial results and market performance.
Summary of Key Metrics
To summarise, Embassy Developments’ stock price has declined to Rs.64.56, marking a 52-week low and a significant drop from its 52-week high of Rs.163.70. The stock’s recent performance includes a 10.93% loss over two days and a year-to-date return of -50.90%. Financial indicators show a net loss in the latest quarter, rising interest expenses, and weak debt servicing capacity. Promoter share pledging remains elevated, adding to market pressures.
These factors collectively illustrate the challenges faced by Embassy Developments in the current market environment and its relative position within the Realty sector.
Only for Rs. 14,999 - Get Access to 2 Years + 6 Months of All Premium Features on MarketsMojo. As low as ₹500/month! Claim 83% OFF →
