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EMBA

Embassy Office Parks REIT NSEI:EMBASSY Stock Report

Last Price

₹365.85

Market Cap

₹342.1b

7D

-2.7%

1Y

6.2%

Updated

19 Aug, 2022

Data

Company Financials +
EMBASSY fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance4/6
Financial Health1/6
Dividends4/6

EMBASSY Stock Overview

Embassy Office Parks REIT owns, operates, and invests in real estate and related assets in India.

Embassy Office Parks REIT Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Embassy Office Parks REIT
Historical stock prices
Current Share Price₹365.85
52 Week High₹406.95
52 Week Low₹327.10
Beta0.27
1 Month Change-0.69%
3 Month Change-1.98%
1 Year Change6.16%
3 Year Change-3.75%
5 Year Changen/a
Change since IPO16.27%

Recent News & Updates

Shareholder Returns

EMBASSYIN REITsIN Market
7D-2.7%0.2%2.3%
1Y6.2%-2.9%10.2%

Return vs Industry: EMBASSY exceeded the Indian REITs industry which returned -2.9% over the past year.

Return vs Market: EMBASSY underperformed the Indian Market which returned 10.2% over the past year.

Price Volatility

Is EMBASSY's price volatile compared to industry and market?
EMBASSY volatility
EMBASSY Average Weekly Movement2.9%
REITs Industry Average Movement2.6%
Market Average Movement6.3%
10% most volatile stocks in IN Market8.9%
10% least volatile stocks in IN Market4.1%

Stable Share Price: EMBASSY is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: EMBASSY's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2014n/aVikaash Khdloyahttps://www.embassyofficeparks.com

Embassy Office Parks REIT owns, operates, and invests in real estate and related assets in India. The company operates through Commercial Offices, Hospitality, and Other segments. Its property portfolio comprises office parks and office buildings.

Embassy Office Parks REIT Fundamentals Summary

How do Embassy Office Parks REIT's earnings and revenue compare to its market cap?
EMBASSY fundamental statistics
Market Cap₹342.11b
Earnings (TTM)₹8.62b
Revenue (TTM)₹31.70b

40.2x

P/E Ratio

10.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EMBASSY income statement (TTM)
Revenue₹31.70b
Cost of Revenue₹4.44b
Gross Profit₹27.26b
Other Expenses₹18.64b
Earnings₹8.62b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)9.10
Gross Margin85.98%
Net Profit Margin27.20%
Debt/Equity Ratio52.0%

How did EMBASSY perform over the long term?

See historical performance and comparison

Dividends

2.7%

Current Dividend Yield

84%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is EMBASSY undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for EMBASSY?

Other financial metrics that can be useful for relative valuation.

EMBASSY key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue14.8x
Enterprise Value/EBITDA19x
PEG Ratio2.1x

Price to Earnings Ratio vs Peers

How does EMBASSY's PE Ratio compare to its peers?

EMBASSY PE Ratio vs Peers
The above table shows the PE ratio for EMBASSY vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average42.3x
543217 Mindspace Business Parks REIT
43.5x18.8%₹217.9b
BIRET Brookfield India Real Estate Trust
51.4x26.1%₹113.0b
543290 Powergrid Infrastructure Investment Trust
48.6xn/a₹293.4b
OBEROIRLTY Oberoi Realty
25.5x19.8%₹349.9b
EMBASSY Embassy Office Parks REIT
40.2x18.7%₹342.1b

Price-To-Earnings vs Peers: EMBASSY is good value based on its Price-To-Earnings Ratio (40.2x) compared to the peer average (42.3x).


Price to Earnings Ratio vs Industry

How does EMBASSY's PE Ratio compare vs other companies in the Asian REITs Industry?

Price-To-Earnings vs Industry: EMBASSY is expensive based on its Price-To-Earnings Ratio (40.2x) compared to the Asian REITs industry average (18.2x)


Price to Earnings Ratio vs Fair Ratio

What is EMBASSY's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

EMBASSY PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio40.2x
Fair PE Ratio43.3x

Price-To-Earnings vs Fair Ratio: EMBASSY is good value based on its Price-To-Earnings Ratio (40.2x) compared to the estimated Fair Price-To-Earnings Ratio (43.3x).


Share Price vs Fair Value

What is the Fair Price of EMBASSY when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: EMBASSY (₹365.85) is trading below our estimate of fair value (₹455.15)

Significantly Below Fair Value: EMBASSY is trading below fair value, but not by a significant amount.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is Embassy Office Parks REIT forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


18.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EMBASSY's forecast earnings growth (18.7% per year) is above the savings rate (6.8%).

Earnings vs Market: EMBASSY's earnings (18.7% per year) are forecast to grow faster than the Indian market (18.6% per year).

High Growth Earnings: EMBASSY's earnings are forecast to grow, but not significantly.

Revenue vs Market: EMBASSY's revenue (13.1% per year) is forecast to grow faster than the Indian market (10.5% per year).

High Growth Revenue: EMBASSY's revenue (13.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EMBASSY's Return on Equity is forecast to be low in 3 years time (6.1%).


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Past Performance

How has Embassy Office Parks REIT performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


26.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: EMBASSY has high quality earnings.

Growing Profit Margin: EMBASSY's current net profit margins (27.2%) are higher than last year (25.9%).


Past Earnings Growth Analysis

Earnings Trend: EMBASSY's earnings have grown significantly by 26.9% per year over the past 5 years.

Accelerating Growth: EMBASSY's earnings growth over the past year (23.4%) is below its 5-year average (26.9% per year).

Earnings vs Industry: EMBASSY earnings growth over the past year (23.4%) exceeded the REITs industry 19.3%.


Return on Equity

High ROE: EMBASSY's Return on Equity (3.4%) is considered low.


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Financial Health

How is Embassy Office Parks REIT's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: EMBASSY's short term assets (₹9.5B) do not cover its short term liabilities (₹15.2B).

Long Term Liabilities: EMBASSY's short term assets (₹9.5B) do not cover its long term liabilities (₹189.1B).


Debt to Equity History and Analysis

Debt Level: EMBASSY's net debt to equity ratio (49.7%) is considered high.

Reducing Debt: EMBASSY's debt to equity ratio has reduced from 203.3% to 52% over the past 5 years.

Debt Coverage: EMBASSY's debt is not well covered by operating cash flow (18.5%).

Interest Coverage: EMBASSY's interest payments on its debt are not well covered by EBIT (2.2x coverage).


Balance Sheet


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Dividend

What is Embassy Office Parks REIT current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


2.69%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: EMBASSY's dividend (2.69%) is higher than the bottom 25% of dividend payers in the Indian market (0.39%).

High Dividend: EMBASSY's dividend (2.69%) is in the top 25% of dividend payers in the Indian market (1.68%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, EMBASSY has been paying a dividend for less than 10 years.

Growing Dividend: EMBASSY's dividend payments have increased, but the company has only paid a dividend for 3 years.


Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (83.8%), EMBASSY's payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (37.9%), EMBASSY's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

1.6yrs

Average management tenure


CEO

Vikaash Khdloya

3.33yrs

Tenure

Mr. Vikaash Khdloya has been Chief Operating Officer of Embassy Office Parks Management Services Private Limited - the Manager of Embassy Office Parks REIT since April 2019 and serves as its Chief Executiv...


Leadership Team

Experienced Management: EMBASSY's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: EMBASSY's board of directors are considered experienced (4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: EMBASSY insiders have bought and sold the same number of shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Embassy Office Parks REIT's employee growth, exchange listings and data sources


Key Information

  • Name: Embassy Office Parks REIT
  • Ticker: EMBASSY
  • Exchange: NSEI
  • Founded: 2014
  • Industry: Office REITs
  • Sector: Real Estate
  • Implied Market Cap: ₹342.114b
  • Shares outstanding: 947.89m
  • Website: https://www.embassyofficeparks.com

Number of Employees


Location

  • Embassy Office Parks REIT
  • Royal Oaks
  • Embassy Golflinks Business Park
  • Bengaluru
  • Karnataka
  • 560071
  • India

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/19 00:00
End of Day Share Price2022/08/19 00:00
Earnings2022/06/30
Annual Earnings2022/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.