Suraj Estate Developers Stock Falls to 52-Week Low of Rs.263.4 Amidst Prolonged Downtrend

Recent Price Movement and Market Context

On 24 Nov 2025, Suraj Estate Developers touched an intraday low of Rs.263.4, representing a 3.43% decline on the day and underperforming its sector by 1.66%. This marks the sixth consecutive day of losses, with the stock returning approximately -9.34% over this period. The current price level is substantially below its 52-week high of Rs.730.65, indicating a significant retracement of over 60% from its peak.

The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a persistent bearish trend. This contrasts with the broader market, where the Sensex, despite a sharp reversal on the same day, remains close to its 52-week high and trades above its 50-day and 200-day moving averages.

Financial Performance and Profitability Indicators

Suraj Estate Developers’ financial data over the past year reveals challenges in profitability and cash flow generation. The company’s average Return on Equity (ROE) stands at 9.68%, reflecting modest returns on shareholders’ funds. Meanwhile, the Return on Capital Employed (ROCE) is reported at 12.8%, which, while comparatively higher, has not translated into sustained stock price strength.

Operating cash flow for the year ended September 2025 registered a negative figure of Rs.306.34 crores, indicating cash outflows from core business activities. Interest expenses for the latest six-month period amounted to Rs.41.12 crores, showing a growth rate of 67.91%, which adds pressure on the company’s financial resources. The Dividend Payout Ratio (DPR) for the year is at its lowest, recorded at 0.00%, signalling no dividend distribution during this period.

Debt Levels and Institutional Holding Trends

The company’s Debt to EBITDA ratio is reported at 2.64 times, indicating a relatively high level of debt compared to earnings before interest, tax, depreciation, and amortisation. This ratio suggests a constrained capacity to service debt obligations comfortably. The rising interest costs further compound this pressure.

Institutional investors have reduced their stake by 1.01% in the previous quarter, collectively holding 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.

Long-Term and Recent Performance Comparison

Over the last year, Suraj Estate Developers has recorded a total return of -54.79%, significantly lagging behind the Sensex, which has shown a positive return of 7.16% over the same period. The stock has also underperformed the BSE500 index across multiple time frames, including the last three years, one year, and three months, indicating persistent challenges in delivering shareholder value relative to broader market benchmarks.

Despite the stock’s price decline, the company’s profits have risen by 35% over the past year. The Price/Earnings to Growth (PEG) ratio stands at 0.6, which may indicate a valuation that is not fully aligned with earnings growth, though this has not been sufficient to arrest the stock’s downward trajectory.

Sector and Market Environment

Suraj Estate Developers operates within the realty sector, which has experienced varied performance across different companies and market cycles. On the day the stock hit its 52-week low, the Sensex opened higher by 88.12 points but reversed sharply to close down by 528.89 points, or 0.52%, at 84,791.15. The index remains within 1.19% of its 52-week high of 85,801.70, supported by bullish moving averages.

The divergence between Suraj Estate Developers’ stock performance and the broader market indices highlights company-specific factors influencing investor sentiment and valuation.

Summary of Key Metrics

To summarise, Suraj Estate Developers’ stock has reached Rs.263.4, its lowest level in the past year, following a six-day losing streak and a cumulative decline of 9.34% during this period. The company’s financial indicators reveal a high debt burden relative to earnings, negative operating cash flows, rising interest expenses, and limited dividend distribution. Institutional investors have reduced their holdings, and the stock’s returns have lagged significantly behind market benchmarks over multiple time horizons.

While the company’s profits have shown growth, this has not translated into positive stock price momentum, with the share price trading below all major moving averages and well off its 52-week high.

Limited Time Only! Subscribe for Rs. 12,999 and get 1 Year of MojoOne + an Additional Year Completely FREE. Don't miss out on this exclusive offer. Claim Your Free Year →