Suraj Estate (SURAJEST)

FairStock Score: 44/100 — MIXED

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

Key Financials

Strengths

• P/E of 10.70 and PEG of 0.67 indicate reasonable valuation relative to earnings growth.
• ROCE of 17.27% with debt/equity of 0.57 shows efficient capital use and manageable leverage.
• Piotroski F-Score of 7/9 suggests solid overall financial health.
• Promoter holding of 69.60% aligns management interests with minority shareholders.
• Profit growth of 25.88% despite modest sales growth shows operating leverage and margin strength.

Concerns

• Dividend yield is 0.00%, so investors get no income cushion and depend entirely on capital appreciation.
• Sales growth of only 6.01% is sluggish; the 25.88% profit growth may not be sustainable without top-line acceleration.
• Price-to-book of 1.98 means there is no deep margin of safety on net asset value.
• Real estate revenue is lumpy; the latest quarter's ₹180 Cr sales and ₹25 Cr profit may not annualize smoothly.

AI Analysis

Looking at Suraj Estate, I begin with the numbers, not the noise. At ₹241.78, the market cap is ₹1,047 Cr, and I am paying 10.7 times earnings. That is not an expensive price. With the PEG at 0.67, the market is giving credit to the 25.88% profit growth. But the top line tells a more sober story: sales grew only 6.01%. In my experience, when profit growth runs far ahead of revenue growth, I must ask whether the margin improvement is durable or just project mix. The balance sheet is respectable. Debt/equity is 0.57, ROCE is 17.27%, and ROE is 13.45%. These are decent numbers for a capital-heavy developer. The Piotroski score of 7 out of 9 supports the view that financial health is steady. I also like the 69.60% promoter holding; the people running the firm have serious skin in the game. But I do not see a wide moat here. Residential and commercial projects are competitive, and real estate is cyclical. Book value is ₹122.15, so at 1.98 times book I am not buying a classic Graham bargain. I am buying a decent business at a fair price, not a wonderful business at a steal. The latest quarter shows sales of ₹180 Cr and net profit of ₹25 Cr, which is a good quarter, but one quarter is never a trend. There is zero dividend yield, so my entire return depends on the company compounding capital. If revenue growth stays near 6%, this is a steady slow grower, not a fast grower. I would want to see sales accelerate before treating the 25.88% profit growth as permanent. For now, Suraj Estate is worth watching, and the low P/E gives some margin of safety, but I would not chase it.

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