Samor Reality Ltd

Samor Reality's capital structure shows a debt-to-equity ratio of 0.67, indicating a moderate reliance on debt financing. The company's liquidity position is weak, with cash and equivalents of INR 3.3 million and a negative free cash flow of INR 6.6 million, suggesting potential short-term liquidity constraints [doc:HA-latest]. The current ratio of 4.45 implies the company has sufficient current assets to cover its current liabilities, but the negative operating cash flow of INR 246.8 million raises concerns about its ability to sustain operations without external financing [doc:HA-latest]. Profitability metrics are mixed. The company reported a gross profit of INR 49.1 million and operating income of INR 37.5 million, but a net loss of INR 6.3 million, resulting in a negative return on equity of -1.03% and a negative return on assets of -0.5%. These figures fall below the industry median for homebuilders, which typically report positive ROE and ROA, indicating underperformance relative to peers [doc:HA-latest]. The company's revenue is concentrated in residential apartment developments and construction material trading, with no disclosed geographic diversification beyond Gujarat. This concentration increases exposure to regional economic and regulatory risks, particularly in the real estate sector, which is sensitive to local demand and policy changes [doc:HA-latest]. Growth trajectory is uncertain. The company has not reported revenue in the latest financial period, and historical data is not provided. The absence of revenue and the negative net income suggest a challenging operating environment, potentially due to project delays, cost overruns, or weak demand in the residential real estate market [doc:HA-latest]. Risk factors include liquidity constraints and the potential for dilution, although the risk of dilution is currently assessed as low. The company's negative operating cash flow and reliance on debt financing increase its exposure to interest rate fluctuations and refinancing risks. The risk assessment also flags a negative net cash position after subtracting total debt, which could necessitate additional capital raising in the near term [doc:HA-latest]. Recent events include the filing of financial statements showing a net loss and negative cash flows, but no significant corporate actions or regulatory changes have been disclosed. The company's focus on residential developments in Gujarat remains unchanged, and no new projects or strategic partnerships have been announced in the latest filings [doc:HA-latest].