Puravankara Ltd.
ISIN: INE323I01011 • Market Cap: ₹5,202 Cr
The 5-Pillar Quality Audit for Puravankara Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (20.0%), Return on Capital Employed (20.8%), and equity compounding (—).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 2.49 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (48.7%) and 3Y PAT CAGR (33.3%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 32.45 vs PEG of 0.45 and Dividend Yield of —.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 75.0%, backed by 17.2% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 20.8%)
Puravankara Ltd. generates exceptional return on capital employed of 20.8%, reflecting pricing power and competitive moat.
Strong Topline Expansion (3Y Sales CAGR: 48.7%)
Revenue has expanded at 48.7% CAGR over 3 years, signaling industry market-share gains.
High-Velocity Profit Compounding (3Y PAT CAGR: 33.3%)
Net earnings have compounded at 33.3% annualized, demonstrating operating leverage.
Areas to Watch & Potential Risks
Elevated Financial Gearing (D/E: 2.49)
Debt-to-Equity exceeds 0.9x, meaning substantial operating earnings are absorbed by mandatory interest coverage.
Sectoral & Macro Headwinds (Realty)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Realty space.
Quantitative Strategy Eligibility
Checking PURVA against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 74/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Realty Sector Peer Comparison
Compare PURVA directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Puravankara Ltd. (PURVA)Current | 74/100 | ₹5,202 Cr | 32.45 | 20.8% | 2.49 | — |
| DLF Ltd. (DLF) | 62/100 | ₹1.65 Lakh Cr | 37.14 | 6.1% | 0.00 | View |
| Lodha Developers Ltd. (LODHA) | 82/100 | ₹1.21 Lakh Cr | 29.21 | 18.2% | 0.44 | View |
| Phoenix Mills Ltd. (PHOENIXLTD) | 68/100 | ₹68,498 Cr | 53.51 | 10.3% | 0.45 | View |
| Prestige Estates Projects Ltd. (PRESTIGE) | 64/100 | ₹67,840 Cr | 59.57 | 13.8% | 0.92 | View |
| Godrej Properties Ltd. (GODREJPROP) | 69/100 | ₹60,093 Cr | 37.55 | 12.4% | 0.80 | View |
Frequently Asked Questions: Puravankara Ltd.
Q:What is the 5-Pillar Fundamental Score for Puravankara Ltd. (PURVA)?
Puravankara Ltd. has a RupeeTools Fundamental Score of 74/100, placing it in the 'Solid & Healthy' category. Its pillar scores are: Profitability (68/100), Financial Health (48/100), Growth (99/100), Valuation (82/100), and Ownership Quality (82/100).
Q:Is PURVA fundamentally strong for long-term investment?
Yes, PURVA exhibits solid fundamental strength with a 74/100 score, driven by a return on equity of — and a debt-to-equity ratio of 2.49.
Q:Does PURVA pass the Coffee Can Investing filter?
Yes! PURVA satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does PURVA compare against other Realty peers?
Within India's Realty sector, PURVA trades at a P/E of 32.45 and generates an ROCE of 20.8%. Compare its 5-Pillar score of 74/100 against top sector peers like DLF Ltd. (62/100), Lodha Developers Ltd. (82/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.