Recent Price Movement and Market Context
On the day the new low was recorded, Puravankara’s stock price fell by 1.84%, underperforming the Realty sector by 1.89%. This decline extends a losing streak that has persisted for seven consecutive trading sessions, during which the stock has shed 13.77% of its value. The current price of Rs.202.6 stands well below the stock’s 52-week high of Rs.338.5, highlighting the scale of the recent correction.
Technical indicators reinforce the bearish sentiment, with the stock trading below all major moving averages — including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This broad weakness contrasts with the broader market’s performance, where the Sensex, despite a negative close of 0.49% at 81,844.62 points, remains above its 200-day moving average, though below its 50-day average.
Long-Term Performance and Relative Comparison
Over the last 12 months, Puravankara Ltd’s stock has declined by 11.82%, a stark contrast to the Sensex’s positive return of 9.68% and the BSE500 index’s gain of 14.17%. This underperformance underscores the challenges faced by the company relative to the broader market and its sector peers.
Despite the company’s sizeable market presence, its market capitalisation grade remains low at 3, reflecting limited investor confidence. Domestic mutual funds hold a marginal stake of just 0.35%, a figure that may indicate cautious positioning given the company’s recent financial metrics and market performance.
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Fundamental Metrics and Financial Health
Puravankara Ltd’s fundamental profile continues to reflect challenges. The company’s long-term Return on Capital Employed (ROCE) averages a modest 5.94%, indicating limited efficiency in generating returns from its capital base. Operating profit growth over the past five years has been subdued, with a compound annual growth rate of 7.94%, which is relatively low for the Realty sector.
Debt servicing capacity remains a concern, with a high Debt to EBITDA ratio of 10.37 times. This elevated leverage ratio suggests that the company faces significant interest obligations relative to its earnings before interest, taxes, depreciation, and amortisation, which may constrain financial flexibility.
Despite these headwinds, the company reported a notable increase in operating profit in the December quarter, rising by 107.22%. Quarterly PBDIT reached a peak of Rs.219.26 crores, while Profit Before Tax excluding other income stood at Rs.43.89 crores, the highest recorded in recent quarters. The operating profit to interest coverage ratio also improved to 1.33 times, signalling some relief in meeting interest expenses.
Valuation and Market Perception
From a valuation standpoint, Puravankara Ltd is trading at a discount relative to its peers’ historical averages. The company’s ROCE of 3.3 in the latest period corresponds with a fair valuation, supported by an Enterprise Value to Capital Employed ratio of 1.6. However, the stock’s price decline has outpaced the fall in profits, which have decreased by 33.5% over the past year, indicating market concerns about sustainability of earnings and growth prospects.
The stock’s downgrade in Mojo Grade from Strong Sell to Sell on 28 Oct 2025, with a current Mojo Score of 32.0, reflects a slight improvement in outlook but remains firmly negative. This grading aligns with the company’s financial metrics and recent price action, reinforcing the cautious stance adopted by market participants.
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Sector and Market Environment
The Realty sector has experienced mixed performance in recent months, with some companies showing recovery while others face pressure from rising interest rates and subdued demand. Puravankara Ltd’s stock performance has lagged behind the sector average, reflecting company-specific factors as well as broader market dynamics.
On the day of the new low, the Sensex opened flat but declined by 375.86 points, or 0.49%, closing at 81,844.62. The index’s 50-day moving average remains above its 200-day average, indicating a longer-term positive trend for the market overall, contrasting with the stock’s persistent weakness.
Summary of Key Financial Indicators
To summarise, Puravankara Ltd’s key financial indicators as of the latest reporting period include:
- New 52-week low price: Rs.202.6
- One-year stock return: -11.82%
- Sector performance comparison: Realty sector outperformed by 14.17% over one year
- ROCE (long term average): 5.94%
- Operating profit growth (5-year CAGR): 7.94%
- Debt to EBITDA ratio: 10.37 times
- Quarterly PBDIT peak: Rs.219.26 crores
- Operating profit to interest coverage (quarterly): 1.33 times
- Mojo Score: 32.0 (Sell), downgraded from Strong Sell on 28 Oct 2025
These figures illustrate the financial pressures and valuation challenges that have contributed to the stock’s decline to its current 52-week low.
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