Embassy Off.REIT (EMBASSY)
CyclicalFairStock Score: 34/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹369.92 |
| Market Cap | ₹35,064.49 Cr |
| P/E Ratio | 102.67 |
| ROCE | 3.64% |
| ROE | 5.19% |
| Dividend Yield | 0.15% |
| Profit Growth | 56.71% |
| Debt/Equity | 0.96 |
| Sales Growth | 16.82% |
| Free Cash Flow | ₹1,444 Cr |
| 52-Week Range | ₹410.15 — ₹462 |
| Sector | Realty |
| Book Value | ₹209.36 |
AI Analysis
AI-generated, general educational analysis — not personal investment advice.
I approach Embassy Off.REIT as a real estate cash-flow investment: I want durable rent, sensible leverage, and a fair price. The numbers show a large ₹35,064 Cr REIT earning ₹1,193 Cr sales and ₹381 Cr net profit last quarter. Sales grew 16.82%, profit grew 56.71%, and five-year revenue CAGR is 13.48%, so the business is expanding. Free cash flow of ₹1,444 Cr is a real positive; Piotroski F-Score 7/9 suggests accounting health. But quality is not cheap. At ₹369.92, the P/E is 102.67, P/B is 1.77, and book value is ₹209.36. ROE 5.19% and ROCE 3.64% are modest; debt/equity 0.96 means leverage is meaningful. For a REIT, dividend yield 0.15% is extremely thin; I expect rental income to be distributed, not hoarded. That yield offers almost no margin of safety. The PEG of 2.79 and FairStock Score 34/100 (RISKY) warn that growth is already priced in. The stated 52-week range ₹410.15–₹462.00 makes the current price look unusual, but valuation still demands caution. I am not against paying up for exceptional compounding, but I need evidence. Here, the latest quarter’s profit is good, yet ROE and ROCE remain low because the asset base is heavy and debt is ₹0.96 for every rupee of equity. The FCF is encouraging, but a REIT must also service debt and distribute cash. With dividend yield at only 0.15%, the income component is negligible. A P/B of 1.77 against ₹209.36 book value is not outrageous for real estate, but a P/E of 102.67 gives a tiny earnings yield. I would wait for a lower price or a much higher distribution yield before calling this a bargain. Good assets can be bad investments if entry price is too high.
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Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer