Puravankara Limited (PURVA) AI Stock Analysis

• Market Cap: ₹42.15B
• Dividend Yield: N/A
• Average Volume (3M): 17.91K
• Price to Earnings (P/E): 23.6
• Beta (1Y): 1.94
• Revenue Growth: -23.33%
• EPS Growth: -512.89%
• Country: IN
• Employees: 788
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Development
• EPS (TTM): 2.53
• Shares Outstanding: 237,149,670
• 10 Day Avg. Volume: 15,730
• 30 Day Avg. Volume: 17,911
• PEG Ratio: 0.06
• Price to Book (P/B): 3.42
• Price to Sales (P/S): 2.94
• P/FCF Ratio: -5.63
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: ₹188.00 ▼(-21.73% Downside)
• Action: Upgraded Date: 01/15/26
• Date: Action: Upgraded 01/15/26

The score is primarily constrained by weak financial performance—declining revenue, losses (negative net margin and ROE), high leverage, and stressed cash flow metrics. Technicals are mixed (some near-term strength but still below key longer-term averages with a negative MACD), while valuation is difficult to support given the negative P/E and no dividend yield data.

Positive Factors

High gross and positive EBITDA margins

Sustained high gross margin and positive EBIT/EBITDA margins indicate that core project economics and on-site execution retain healthy spreads. This operational profitability provides a durable cushion to absorb sales volatility and supports ability to service project overheads and some financing costs over coming months.

Multi‑brand residential portfolio

A two‑brand strategy spanning premium and affordable segments diversifies demand exposure. Affordable Provident projects can deliver volume and steadier cash flows while Purva captures higher ASPs, reducing dependency on a single market tier and supporting more stable revenue mix across housing cycles.

Use of joint development agreements (JDAs)

Reliance on JDAs and mixed development structures reduces upfront land capital and spreads execution risk with landowners. This model conserves balance sheet liquidity, accelerates project launches without heavy land investment, and provides a structural lever to scale projects with lower initial cash outlay.

Negative Factors

High financial leverage

A debt-to-equity ratio of 2.5 and low equity share mean the company is highly leveraged. In a capital‑intensive industry, this magnifies interest and refinancing risk, reduces financial flexibility for new launches, and leaves the firm exposed if sales or collections slow over the medium term.

Negative net margin and ROE

Negative net margins and ROE signal that, after financing and non‑operating items, the company is losing value for shareholders. Persistent losses undermine retained capital, hinder reinvestment in projects, and make it harder to rebuild equity while relying on external funding for growth.

Weak cash generation & negative FCF

Negative free cash flow and poor operating cash conversion mean the business struggles to generate internal funds from sales. In real estate this raises the need for external financing for construction and deliveries, amplifying refinancing risk given the firm's high leverage and potentially delaying project completion or launches.

Puravankara Limited Business Overview & Revenue Model

Company Description

Puravankara Limited, together with its subsidiaries, develops residential and commercial properties in India and internationally. The company develops affordable homes, as well as amenities and facilities, such as swimming pools, club houses, and multipurpose halls. It markets its projects under the Purva, Puravankara, and Provident brand names. The company was formerly known as Puravankara Projects Limited and changed its name to Puravankara Limited in December 2016. Puravankara Limited was founded in 1975 and is headquartered in Bengaluru, India.

How the Company Makes Money

Puravankara Limited generates revenue primarily through the sale of residential and commercial properties. The company's revenue model is based on the development and sale of real estate projects, where it earns money from the pre-launch, launch, and sale of units in their developments. Key revenue streams include the sale of apartments, villas, and commercial spaces, as well as revenue from leasing commercial properties. The company also engages in joint ventures, which can provide additional income through sharing profits from collaborative projects. Furthermore, strategic partnerships with local and international firms for financing and development provide essential capital and expertise, contributing to overall earnings. Additionally, the company may benefit from ancillary services such as property management and customer service packages for homeowners.

Puravankara Limited Financial Statement Overview

Summary

Overall fundamentals are weak: revenue has declined significantly in the most recent year, net margin is negative (-8.6% TTM) and ROE is negative (-10.4% TTM). Leverage is high (debt-to-equity 2.50; equity ratio 12.2%), and cash generation is challenged with negative free cash flow trends and weak operating cash flow metrics, partially offset by improved gross margin (55.3% TTM) and positive EBIT/EBITDA margins (16.0%/17.7% TTM).

Income Statement

Puravankara Limited exhibits fluctuating revenue with a significant decline in the most recent year. The gross profit margin improved to 55.3% TTM (Trailing-Twelve-Months), but the company is experiencing a negative net profit margin of -8.6% TTM. The EBIT margin stands at 16.0%, with EBITDA margin at 17.7% TTM, reflecting some operational efficiency despite the net loss.

Balance Sheet

The company maintains a high debt-to-equity ratio of 2.50, indicating significant leverage which could pose risks in a rising interest rate environment. The equity ratio is 12.2%, suggesting a lower proportion of equity financing. Return on equity is negative at -10.4% TTM, reflecting the net losses and indicating a need for profitability improvement.

Cash Flow

Puravankara Limited reported negative free cash flow growth and a negative operating cash flow to net income ratio TTM, highlighting cash flow challenges. The free cash flow to net income ratio is negative, indicating insufficient cash generation relative to net income.

Breakdown	TTM	Mar 2025	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	18.84B	20.18B	22.00B	9.27B	9.41B	21.18B
Gross Profit	10.29B	10.82B	11.18B	5.89B	5.48B	8.32B
EBITDA	3.10B	3.70B	5.26B	2.38B	3.01B	5.04B
Net Income	-2.63B	-1.80B	422.60M	1.48B	-39.70M	883.50M
Balance Sheet
Total Assets	0.00	142.45B	117.27B	86.23B	84.29B	80.79B
Cash, Cash Equivalents and Short-Term Investments	7.32B	7.40B	9.36B	3.09B	1.73B	1.07B
Total Debt	0.00	43.32B	33.25B	26.27B	28.35B	26.95B
Total Liabilities	-17.36B	125.09B	98.37B	65.75B	65.35B	61.63B
Stockholders Equity	17.36B	17.31B	18.83B	20.42B	18.96B	19.14B
Cash Flow
Free Cash Flow	-8.61B	-10.53B	8.41B	1.24B	2.40B	5.56B
Operating Cash Flow	-8.18B	-10.10B	8.96B	1.34B	2.44B	5.78B
Investing Cash Flow	8.71B	-988.70M	129.20M	5.25B	238.80M	-225.20M
Financing Cash Flow	-3.13B	8.58B	-3.13B	-5.29B	-2.13B	-5.79B

Puravankara Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 240.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:PURVA, the sentiment is Negative. The current price of 240.2 is above the 20-day moving average (MA) of 226.28, above the 50-day MA of 233.08, and below the 200-day MA of 262.28, indicating a bearish trend. The MACD of -13.73 indicates Positive momentum. The RSI at 18.52 is Positive, neither overbought nor oversold. The STOCH value of 30.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:PURVA.

Puravankara Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SUNTECK	69 Neutral	₹54.87B	24.91	―	0.36%	-14.25%	17.95%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
MAXESTATES	57 Neutral	₹65.02B	-1,536.76	―	―	79.32%	―
MAHLIFE	56 Neutral	₹75.76B	19.33	―	0.70%	-22.59%	17.35%
RUSTOMJEE	54 Neutral	₹50.37B	487.69	―	0.28%	-20.38%	-36.03%
PURVA	46 Neutral	₹42.15B	23.64	―	―	-23.33%	-512.89%

Puravankara Limited Corporate Events

Puravankara Secures MahaRERA Nod for Mumbai Residential Project Purva Estrella

Puravankara Limited has received registration from the Maharashtra Real Estate Regulatory Authority for its new residential project, Purva Estrella, located in Oshiwara, Andheri in Mumbai’s suburban region. The project, which is targeted at the domestic market, is scheduled to launch on February 20, 2026, signaling the company’s continued expansion in Mumbai’s regulated residential real estate space.

This regulatory clearance enables Puravankara to formally market and sell units under the RERA framework, enhancing transparency and compliance for homebuyers and investors. The move strengthens the developer’s foothold in a high-demand micro-market and supports its broader growth strategy in India’s competitive urban housing sector.

Puravankara Extends Rs. 25 Crore Corporate Guarantee to Subsidiary

Puravankara Limited has announced that it has provided a corporate guarantee of Rs. 25 crore to its wholly owned subsidiary, Starworth Infrastructure & Construction Limited, in favor of IDFC First Bank Limited. This guarantee, aimed at facilitating construction equipment purchases, is a contingent liability for Puravankara, but currently has no impact on the company’s financial standing. The move underscores Puravankara’s commitment to supporting its subsidiary’s operational needs, potentially enhancing its market positioning and operational capabilities.

Puravankara Limited Announces Upcoming Investors’ Meeting

Puravankara Limited has announced its participation in an upcoming investors’ meeting scheduled for December 17, 2025. The meeting will be held virtually and will not include any unpublished price-sensitive information, focusing instead on publicly available data. This initiative reflects Puravankara’s commitment to transparency and engagement with investors, potentially enhancing its market reputation and stakeholder relations.