Max Estates (MAXESTATES)

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 0/2 · Dividend: 0/1

Key Financials

Strengths

• Sales growth of 24.30% shows some demand traction in projects.
• Debt/equity of 0.70 is moderate for a capital-intensive real estate developer.
• Promoter holding of 44.91% keeps promoter interest reasonably aligned with shareholders.
• The company is still generating quarterly sales of ₹50 Cr, indicating ongoing project activity.

Concerns

• P/E of 188.94 and P/B of 2.83 imply an extremely expensive valuation for current earnings and book value.
• Profit growth of -106.13% and latest quarter net profit of ₹0 Cr show current earnings have collapsed.
• ROE of 3.09% and ROCE of 2.54% are far below acceptable returns on shareholder and total capital.
• Piotroski F-score of 4/9, PEG of 7.78, and zero dividend yield point to poor fundamental health and no return to holders.

AI Analysis

Let me value what I can measure. Max Estates sells at ₹402.95, market cap ₹6,584 Cr. For that price, I get a business that earned almost nothing: P/E 188.94, ROE 3.09%, ROCE 2.54%. The latest quarter produced ₹50 Cr sales and ₹0 Cr net profit. Annualised, that is roughly ₹200 Cr of sales against a ₹6,584 Cr market cap—over 30 times turnover. This is not what Graham called an investment. The company grew sales 24.30%, but profit growth was -106.13%; growth that destroys earnings is not prosperity. Book value is ₹142.45, so I am paying 2.83 times book for a 3% return on equity; that leaves no margin of safety. Debt/equity is 0.70, manageable, but with no dividend and weak operating returns, the equity holder gets nothing while waiting. Piotroski F-score 4/9 and PEG 7.78 reinforce financial fragility and extreme valuation. Real estate can be cyclical, but at this price it is not cheap on an asset basis either. The P/B of 2.83 is especially troublesome because real estate assets are not liquid and carrying values may not reflect forced-sale reality. The business may own valuable land or projects, but I cannot infer a moat from these figures; promoter holding 44.91% does not offset poor capital generation. A FairStock score of 5/100 matches my caution. I would need evidence of substantially higher future return on invested capital, meaningful project cash flows, and a much lower price before considering an investment. Until then, this is a story stock, not a value stock.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer