Peninsula Land Limited — financial distress indicators
Financial-health summary
Peninsula Land Limited's reported numbers place it in the 'Very weak' financial-health band (distress score 81/100). The main indicators are operating profit does not cover interest, revenue collapse and material debt with no ebitda. Independently, the Ohlson accounting model puts its 1-year failure probability at 99% and the market-implied (Merton) default probability is 5.7%. In its favour: operating cash flow is positive over the latest 12 months.
Stress by dimension
Share price — last 12 months
Indicators behind the score
Each red flag shows the evidence from the company’s own filings and the financial or legal principle behind it. Points add to the 0–100 score.
Interest coverage (EBIT / interest) is 0.11×.
When EBIT < interest, debt service is funded from cash reserves or new borrowing — the classic precursor to payment default and covenant breach.
Revenue changed -44% year over year.
A >30% sales drop typically breaches leverage covenants and starves fixed-cost coverage.
Debt is 45% of assets while EBITDA is not positive.
With no operating earnings, repayment depends entirely on asset sales or fresh capital.
O-score 4.22 → model probability 99%.
Ohlson (1980) logit model of 1-year corporate failure; O > 0 (p > 50%) is the original failure cut-off.
Current ratio is 0.90.
Short-term obligations exceed short-term resources — the company relies on rolling over credit.
Recurring net losses.
Repeated losses are a core input in both Ohlson and Altman failure models.
Merton distance-to-default 1.58 σ → PD 5.7%.
Investment-grade issuers typically have 1-year PD well below 1%.
Operating margin fell from 21% to 4% in two years.
Sharp margin compression signals loss of pricing power or cost control.
Revenue declined every year for three years.
Structural, not cyclical, decline.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- Operating cash flow is positive over the latest 12 months.
- High insider/promoter ownership (69%) aligns management with survival.
📰 Recent news scan
- Peninsula Land (PENINLAND.NS) Slips 1.14% to ₹15.58, Holds Above Key Support - Iron Condor Alert - siam.inGoogle News · 2026-09-29
- Peninsula Land (PENINLAND.NS) Holds at ₹17.06 With Marginal +0.18% Gain as Stock Sits Mid-Range - Retail Sentiment - https://www.siam.in/Google News · 2026-09-22
- PENINLAND Share Price Today - Peninsula Land Ltd. Stock Price Live NSE/BSE - UnivestGoogle News · 2026-09-18
- Peninsula (PENINLAND.NS) Results Versus Estimates: The Latest Financial Metrics Are Now Available at the Close; Closing Reaction: The Stock Gains 4.97% at the Close - Long-Term Guidance - https://www.siam.in/Google News · 2026-08-24
- Peninsula Land Share Price Falls 6%: Can PENINLAND Hold Above ₹18.75? - Kalkine IndiaGoogle News · 2026-04-22
⚖️ Indian legal pathway — the IBC, 2016
How insolvency starts
- A financial creditor (§7), an operational creditor after a demand notice (§§8–9) or the company itself (§10) can apply to the NCLT once a default of at least ₹1 crore occurs (§4).
- On admission a moratorium (§14) stops suits and recovery; the board is suspended and an insolvency professional runs the company.
- The Committee of Creditors approves a resolution plan with 66% of voting share (§30(4)) within an outer limit of 330 days (§12); otherwise liquidation (§33) under the §53 waterfall — equity ranks last. Defaulting promoters are generally barred from bidding (§29A).
Earlier warning stages
- RBI's Prudential Framework for Resolution of Stressed Assets (7 June 2019): lenders must review a borrower within 30 days of default and implement a resolution plan, or provide more.
- Listed companies must disclose loan defaults to exchanges under SEBI (LODR); a rating downgrade to “D” is a public signal.
- Auditors must report going-concern uncertainty (SA 570 / Ind AS 1).
Frequently asked questions
What do Peninsula Land Limited's financial-health indicators show?
As of 2026-10-09, Peninsula Land Limited's public financial data places it in the 'Very weak' band with a distress score of 81/100, driven by operating profit does not cover interest, revenue collapse and material debt with no ebitda. This is a statistical screen of reported numbers — it does not mean the company is insolvent, has defaulted or will enter insolvency proceedings.
What is Peninsula Land Limited's financial distress score?
81/100 ('Very weak'). Ohlson O-score 4.22 (model 1-year failure probability 99%). Merton distance-to-default 1.58 σ (model default probability 5.7%).
What works in Peninsula Land Limited's favour?
Operating cash flow is positive over the latest 12 months. High insider/promoter ownership (69%) aligns management with survival.
How are shareholders treated if a company enters insolvency?
Under the IBC the Committee of Creditors controls the resolution; the §53 waterfall pays secured creditors and workers first and equity last. In most resolution plans existing shareholders are wiped out or left with a token stake, and the company may be delisted.
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Methodology
Score = capped sum of rule-based red flags across seven dimensions (liquidity, solvency, profitability, cash flow, sales trend, market signal, news). Ohlson O-score (1980) gives an accounting-based 1-year failure probability; Merton distance-to-default (Bharath & Shumway 2008) gives a market-implied probability. Financial institutions use a capital-based rule set. Recalculated every trading day from the latest filings, prices and news.