This stock appeared on my stock screener, but I couldn’t find any forum here. Therefore, I’m starting a discussion here.
About The Company
- A real estate construction company that develops residential and commercial real estate in the South Central Mumbai region.
- Asset-light business model focusing primarily on redevelopment projects, which saves significantly on upfront land acquisition costs.
- The company has an established brand with a long-standing presence in the Value Luxury Segment and Luxury Segment of the residential real estate market.
- The company was promoted by Rajan Meenathakonil Thomas. Currently, the promoters hold 74.95%.
Positives
- Presence in the fast-growing and less price-sensitive luxury real estate segment.
- MMR is one of the fastest-growing realty markets.
- Focused on asset-light redevelopment projects, providing access to land parcels at cheaper costs, resulting in high ROCE and ROE numbers.
- High EBITDA margins due to access to cheaper land parcels and a focus on luxury projects.
- Good reported numbers in terms of sales and PAT growth, with very attractive ROCE and ROE numbers.
- Experienced promoters and management team.
- Good track record of tenant resettlement and compliance with redevelopment norms.
- Investment from an institutional investor - Tata Housing Opportunity Fund.
Risks
- High cost of interest on debt.
- Leveraged balance sheet.
- High concentration in the South Central Mumbai region.
- Susceptible to real estate cycles.
Ratings Although reviews don’t tell the complete story, I am including them as they indicate how different stakeholders are satisfied/dissatisfied with the company. Keep in mind that they can be easily manipulated.
- Glassdoor - 3.8/5
- Google My Business - 3.5/5
- Justdial - 4.0/5
Research Reports
Disclaimer Not invested but actively tracking - The stock is recently listed and has a leveraged balance sheet. Therefore, I am actively researching it and waiting for more quarterly results and commentary from management, as well as valuation comfort.
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