Suraj Estate Developers Ltd Hits All-Time Low Amidst Prolonged Downtrend

Stock Performance and Market Context

On 23 Jan 2026, Suraj Estate Developers Ltd’s share price touched an intraday low of Rs.218, representing a 2.15% decline during the trading session. The stock closed the day down 2.49%, underperforming the Sensex which fell by 0.88%. This movement was in line with the broader Construction - Real Estate sector, which declined by 2.15% on the same day.

Examining the stock’s recent performance reveals a challenging trend. Over the past week, the share price has dropped by 10.32%, compared to a 2.38% decline in the Sensex. The one-month and three-month performances show even steeper falls of 11.27% and 20.48% respectively, while the Sensex posted more modest declines of 4.61% and 3.52% over the same periods.

Most notably, the stock has delivered a negative return of 55.45% over the last year, in stark contrast to the Sensex’s positive 6.61% gain. Year-to-date, the stock is down 17.71%, compared to the Sensex’s 4.27% decline. Over longer horizons, Suraj Estate Developers Ltd has failed to generate any appreciable returns, with zero growth recorded over three, five, and ten-year periods, while the Sensex has advanced by 33.86%, 66.90%, and 233.85% respectively.

Technical Indicators and Moving Averages

Technical analysis underscores the bearish momentum. The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This persistent weakness across multiple timeframes signals a lack of upward price momentum and continued investor caution.

Financial Metrics and Profitability

Suraj Estate Developers Ltd’s financial indicators reflect ongoing pressures. The company’s Debt to EBITDA ratio stands at 2.64 times, indicating a relatively high leverage level that constrains its capacity to service debt efficiently. Interest expenses have surged by 67.91% over the latest six-month period, reaching Rs.41.12 crores, further straining financial resources.

Operating cash flow for the year is notably negative at Rs.-306.34 crores, underscoring liquidity challenges. Dividend payout ratio has dropped to zero, reflecting the company’s decision to conserve cash amid financial constraints.

Return on Equity (ROE), averaged at 9.68%, signals modest profitability relative to shareholders’ funds. While the Return on Capital Employed (ROCE) is at 12.8%, suggesting some efficiency in capital utilisation, this has not translated into positive stock performance.

Institutional Investor Activity

Institutional investors have reduced their holdings by 1.01% in the previous quarter, now collectively holding only 2.62% of the company’s shares. This decline in institutional participation may reflect a reassessment of the company’s fundamentals by investors with greater analytical resources.

Valuation and Profit Growth

Despite the stock’s poor price performance, the company’s profits have increased by 35% over the past year. The PEG ratio stands at 0.5, indicating that earnings growth is not fully reflected in the stock price. The enterprise value to capital employed ratio is 1.1, which is considered very attractive from a valuation standpoint, though this has not yet influenced market sentiment positively.

Rating and Market Capitalisation

MarketsMOJO assigns Suraj Estate Developers Ltd a Mojo Score of 45.0, with a current Mojo Grade of Sell, downgraded from Hold on 19 Nov 2025. The company’s market capitalisation grade is rated 3, reflecting its mid-tier size within the sector.

Summary of Performance Relative to Benchmarks

The stock’s underperformance is evident across multiple timeframes when compared to the BSE500 index. Over the last three months, one year, and three years, Suraj Estate Developers Ltd has lagged behind the broader market, highlighting persistent challenges in generating shareholder value.

While the company’s profit growth and valuation metrics suggest some underlying strengths, these have not been sufficient to counterbalance the negative price trends and financial pressures observed.

Conclusion

Suraj Estate Developers Ltd’s fall to an all-time low of Rs.218 underscores a period of sustained weakness in both price performance and financial health. The stock’s decline has been accompanied by increased interest costs, negative cash flows, and reduced institutional participation. Despite some positive profit growth and attractive valuation ratios, the overall market response remains subdued, reflecting the severity of the company’s current situation within the Realty sector.

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