Why is Eraaya Lifespaces Ltd ?
1
With a Negative Book Value, the company has a Weak Long Term Fundamental Strength
- Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -1.00
- The company has been able to generate a Return on Equity (avg) of 0.01% signifying low profitability per unit of shareholders funds
2
Flat results in Dec 25
- INTEREST(9M) At Rs 182.80 cr has Grown at 311.99%
- DEBT-EQUITY RATIO(HY) Highest at 3.92 times
- NON-OPERATING INCOME(Q) is 477.68 % of Profit Before Tax (PBT)
3
Risky - Negative Operating Profits
- The company has recorded a negative EBIT of Rs. -92.3 cr
- Over the past year, while the stock has generated a return of -29.35%, its profits have fallen by -28502%
- The stock is trading risky as compared to its average historical valuations
4
Underperformed the market in the last 1 year
- Even though the market (BSE500) has generated returns of 4.64% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -29.35% returns
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Automobiles)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Eraaya Lifespace for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Eraaya Lifespace
-29.35%
-0.52
56.06%
Sensex
-3.59%
-0.27
13.48%
Quality key factors
Factor
Value
Sales Growth (5y)
398.20%
EBIT Growth (5y)
-9,239.00%
EBIT to Interest (avg)
-1.00
Debt to EBITDA (avg)
405.86
Net Debt to Equity (avg)
-0.43
Sales to Capital Employed (avg)
-0.86
Tax Ratio
100.00%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
17.84%
ROCE (avg)
-1.28%
ROE (avg)
0.01%
Valuation Key Factors 
Factor
Value
P/E Ratio
NA (Loss Making)
Industry P/E
35
Price to Book Value
-0.38
EV to EBIT
-16.70
EV to EBITDA
464.42
EV to Capital Employed
-1.44
EV to Sales
1.04
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
Negative Capital Employed
ROE (Latest)
Negative BV
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bullish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bearish
Moving Averages
Mildly Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bearish
No Trend
Technical Movement
12What is working for the Company
NET SALES(Latest six months)
At Rs 1,255.35 cr has Grown at 43.42%
OPERATING PROFIT TO INTEREST(Q)
Highest at 2.32 times
-7What is not working for the Company
INTEREST(9M)
At Rs 182.80 cr has Grown at 311.99%
DEBT-EQUITY RATIO(HY)
Highest at 3.92 times
NON-OPERATING INCOME(Q)
is 477.68 % of Profit Before Tax (PBT
Loading Valuation Snapshot...
Here's what is working for Eraaya Lifespace
Net Sales - Latest six months
At Rs 1,255.35 cr has Grown at 43.42%
Year on Year (YoY)MOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Operating Profit to Interest - Quarterly
Highest at 2.32 times
in the last five quartersMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Here's what is not working for Eraaya Lifespace
Interest - Nine Monthly
At Rs 182.80 cr has Grown at 311.99%
over preceding nine months periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Non Operating Income - Quarterly
is 477.68 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
Debt-Equity Ratio - Half Yearly
Highest at 3.92 times
in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio






