Suraj Estate Developers Stock Falls to 52-Week Low of Rs.246.5

Current Market Context and Price Movement

On 18 Dec 2025, Suraj Estate Developers recorded its lowest price in the past year at Rs.246.5, a level not seen before in its trading history. This new low comes after four consecutive days of price declines, although the stock showed a modest gain today, outperforming its sector by 0.74%. Despite this slight uptick, the share price remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a sustained downward trend.

In comparison, the broader market index, Sensex, opened flat but has since edged higher by 0.04%, trading at 84,596.05 points. The Sensex is currently 1.85% below its 52-week high of 86,159.02 and is supported by bullish moving averages, with the 50-day average positioned above the 200-day average. Mega-cap stocks are leading the market gains, contrasting with the performance of Suraj Estate Developers.

Long-Term Performance and Relative Comparison

Over the last year, Suraj Estate Developers has experienced a price decline of approximately 60.18%, a stark contrast to the Sensex’s positive return of 5.55% during the same period. The stock’s 52-week high was Rs.648, highlighting the extent of the recent price contraction. Furthermore, the company’s performance has lagged behind the BSE500 index over the last three years, one year, and three months, reflecting persistent underperformance relative to broader market benchmarks.

Financial Metrics Highlighting Company Challenges

Several financial indicators illustrate the pressures faced by Suraj Estate Developers. The company’s Debt to EBITDA ratio stands at 2.64 times, signalling a relatively high level of debt compared to earnings before interest, taxes, depreciation, and amortisation. This ratio suggests a constrained capacity to manage debt obligations efficiently.

Return on Equity (ROE), averaged at 9.68%, points to modest profitability relative to shareholders’ funds. Additionally, the company’s operating cash flow for the year was recorded at a negative Rs.306.34 crores, indicating cash outflows from core business activities. Interest expenses over the latest six months totalled Rs.41.12 crores, reflecting a growth rate of 67.91%, which adds to the financial burden.

Dividend Payout Ratio (DPR) for the year was at its lowest, registering 0.00%, which may reflect a cautious approach to cash distribution amid financial constraints.

Institutional Investor Activity

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

Valuation and Profitability Considerations

Despite the subdued share price, Suraj Estate Developers exhibits a Return on Capital Employed (ROCE) of 12.8%, which is considered attractive. The company’s Enterprise Value to Capital Employed ratio is 1.2, suggesting a valuation that may be appealing relative to the capital invested in the business.

Profit figures have shown a rise of 35% over the past year, contrasting with the share price decline of 60.18%. The Price/Earnings to Growth (PEG) ratio stands at 0.5, which typically indicates a valuation that is low relative to earnings growth.

Summary of Key Factors Affecting Suraj Estate Developers

The stock’s decline to Rs.246.5 reflects a combination of factors including a high debt burden relative to earnings, limited profitability as measured by ROE, and negative operating cash flows. The reduction in institutional shareholding further underscores a cautious stance among sophisticated investors. While the company’s valuation metrics such as ROCE and Enterprise Value to Capital Employed suggest some underlying value, the share price remains under pressure, trading well below all major moving averages.

In the context of a broadly positive market environment, with the Sensex near its 52-week high and supported by mega-cap gains, Suraj Estate Developers’ performance stands out as subdued. The divergence between rising profits and falling share price highlights a complex market assessment of the company’s prospects and financial health.

Conclusion

Suraj Estate Developers’ stock reaching a 52-week low of Rs.246.5 marks a significant milestone in its recent trading history. The company’s financial indicators and market positioning provide a detailed picture of the challenges faced and the current valuation landscape. Investors and market watchers will continue to monitor how these factors evolve in the coming periods.

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