Indiabulls Real Estate (IBR) is one of the largest real estate company in India with development projects spread across high-end office and commercial complexes, premium residential developments, mega townships, retail spaces, hotel and resorts, state of the art special economic zones and infrastructure development. It has around 30 ongoing projects totaling approx 70 million square feet, 2500 acres of SEZ development and additional land bank of 1000 acres. For more info check, http://realestate.indiabulls.com/
Relatively a new player, IBR has delivered a record 3.3 million sq ft developed space valued at USD $ 1.75 billion within 4 years of inception. Some of the commercial tenants of IBR are Vodafone, Yes bank, Franklin Templeton, Canadian consulate.
NUMBERS - THE LATEST
Market cap: 2400 crores CMP on Day10 May2015: Rs 57 BV: 145 rs.(approx)
Revenue FY14: 1799 cr Net profit FY14: 230 CR (EPS: 5.2) FV: 2
POSITIVES - MULTIBAGGER POTENTIAL
1. With significant ongoing projects coming to delivery over the next 2 - 3 years, and its massive land bank, Indiabulls real estate could do very well in terms of revenue growth and profitability over the next 2 - 5 years.
2. As most of the properties have been acquired by IBR through relatively transparent means, mainly via public auctions, the risk due to opaqueness of the indian real estate sector is low. In FY2014, the company sold 3.40 million sq ft worth approx 3000 crores.
3. Indiabulls group is renowned for making regular, consistent and hefty dividend payouts; Dividend payouts by Indiabulls Housing finance have been approx 600% in FY2013, 1400% in FY2014. Payouts by IBR have been 100% in FY2013 and 150% in FY2014 thus far; in all probability the dividends could increase going forward as the profitability of the company increases.
4. Promoters own approximately 37% of the company(inclusive of 10% treasury stock) and none of it is pledged. FII's own around 25% and some of the HDFC, Kotak and HSBC mutual funds recently added this stock to some of their schemes.
NEGATIVES - POSSIBLE RISKS
1. As the company is relatively new, the quarterly results are erratic adding to the rapid fluctuations in the stock price.
2. Though the company has acquired certain marquee properties via auctions, their timely delivery of projects along with consistent quality is yet to be seen.
INTERESTING INFO
1. In the year 2011, YES Bank, picked up the top six floors at one of the three buildings at Indiabulls Real Estate's commercial project Indiabulls Finance Center in Lower Parel at rental of Rs. 125 per sq ft a month
2. Interests rates in India seem to be on a secular downtrend. Lower rates on housing loans and infrastructure projects expected over the next 2 years will benefit IBR in a direct way; and thus improve on revenues and margins.
3. IBR purchased the entire stake of FIM and its affiliates for 1172 crores in 7 projects comprising areas of 297 acres in NCR and Chennai
4. In year 2014, IBR paid GBP £ 155 million (approx 1,550 crore rs) for a commercial property in London's Mayfair. IBR bought a 87,444 sq ft property, 22 Hanover Square, in an auction from the Scottish Widows Investment Partnership. Mayfair is an up-market London neighborhood, home to the significantly wealthy.
MY TAKE
In the property development and real estate business, the most important criteria is "location, location and location". From that perspective the locations of the ongoing projects of Indiabulls real estate can most definitely be qualified as PRIME. Further, they have massive land banks across various geographic locations in India and abroad, which will provide them a platform for future development over next 3 - 5 years or probably more.
With the indian economy all set to rise, and projected increase in GDP and a rise in upper middle class, demand for housing units is all set to rise in locations like Mumbai region, Delhi region, Chennai and other cities. Apart from the 1000 odd acres of land bank in Mumbai, NCR and Chennai, IBR also owns land and developments in Agra, Jodhpur, Ahmedabad, Baroda, Indore and Vishakpatnam.
Indiabulls real estate is well placed to become a multibagger!!
Disclosure: I own shares in Indiabulls real estate.
For consultation(commercial) and JV ideas;
you can contact me via zorbayogi9@gmail.com
Important Note: Potential multibaggers are those stocks which have potential to give 200 - 1000% profits. Obviously such returns take time. Probably 2 - 3 years or more. Short term volatility is the reality of the stock market and that will always happen. Short term movements(upside and downside) are impossible to predict. Only invest funds that you will not need for the next 3 - 4 years. As long as you buy a stock for the right reason, and are convinced about the future prospects of the company, there is no need to worry if the share price goes down and stays down for a period of time after you buy; provided you have followed the cardinal stock market mantra BUY LOW (AND SELL HIGH).
Very important note: The objective of this blog is to share knowledge and info about multibagger ideas/opportunities. Neither is this trading website nor an analyst website nor a Buy/Sell call website. For stock market success, always do your home work, own analysis and make your own decisions.
Relatively a new player, IBR has delivered a record 3.3 million sq ft developed space valued at USD $ 1.75 billion within 4 years of inception. Some of the commercial tenants of IBR are Vodafone, Yes bank, Franklin Templeton, Canadian consulate.
NUMBERS - THE LATEST
Market cap: 2400 crores CMP on Day10 May2015: Rs 57 BV: 145 rs.(approx)
Revenue FY14: 1799 cr Net profit FY14: 230 CR (EPS: 5.2) FV: 2
POSITIVES - MULTIBAGGER POTENTIAL
1. With significant ongoing projects coming to delivery over the next 2 - 3 years, and its massive land bank, Indiabulls real estate could do very well in terms of revenue growth and profitability over the next 2 - 5 years.
2. As most of the properties have been acquired by IBR through relatively transparent means, mainly via public auctions, the risk due to opaqueness of the indian real estate sector is low. In FY2014, the company sold 3.40 million sq ft worth approx 3000 crores.
3. Indiabulls group is renowned for making regular, consistent and hefty dividend payouts; Dividend payouts by Indiabulls Housing finance have been approx 600% in FY2013, 1400% in FY2014. Payouts by IBR have been 100% in FY2013 and 150% in FY2014 thus far; in all probability the dividends could increase going forward as the profitability of the company increases.
4. Promoters own approximately 37% of the company(inclusive of 10% treasury stock) and none of it is pledged. FII's own around 25% and some of the HDFC, Kotak and HSBC mutual funds recently added this stock to some of their schemes.
NEGATIVES - POSSIBLE RISKS
1. As the company is relatively new, the quarterly results are erratic adding to the rapid fluctuations in the stock price.
2. Though the company has acquired certain marquee properties via auctions, their timely delivery of projects along with consistent quality is yet to be seen.
INTERESTING INFO
1. In the year 2011, YES Bank, picked up the top six floors at one of the three buildings at Indiabulls Real Estate's commercial project Indiabulls Finance Center in Lower Parel at rental of Rs. 125 per sq ft a month
2. Interests rates in India seem to be on a secular downtrend. Lower rates on housing loans and infrastructure projects expected over the next 2 years will benefit IBR in a direct way; and thus improve on revenues and margins.
3. IBR purchased the entire stake of FIM and its affiliates for 1172 crores in 7 projects comprising areas of 297 acres in NCR and Chennai
4. In year 2014, IBR paid GBP £ 155 million (approx 1,550 crore rs) for a commercial property in London's Mayfair. IBR bought a 87,444 sq ft property, 22 Hanover Square, in an auction from the Scottish Widows Investment Partnership. Mayfair is an up-market London neighborhood, home to the significantly wealthy.
MY TAKE
In the property development and real estate business, the most important criteria is "location, location and location". From that perspective the locations of the ongoing projects of Indiabulls real estate can most definitely be qualified as PRIME. Further, they have massive land banks across various geographic locations in India and abroad, which will provide them a platform for future development over next 3 - 5 years or probably more.
With the indian economy all set to rise, and projected increase in GDP and a rise in upper middle class, demand for housing units is all set to rise in locations like Mumbai region, Delhi region, Chennai and other cities. Apart from the 1000 odd acres of land bank in Mumbai, NCR and Chennai, IBR also owns land and developments in Agra, Jodhpur, Ahmedabad, Baroda, Indore and Vishakpatnam.
Indiabulls real estate is well placed to become a multibagger!!
Disclosure: I own shares in Indiabulls real estate.
For consultation(commercial) and JV ideas;
you can contact me via zorbayogi9@gmail.com
Important Note: Potential multibaggers are those stocks which have potential to give 200 - 1000% profits. Obviously such returns take time. Probably 2 - 3 years or more. Short term volatility is the reality of the stock market and that will always happen. Short term movements(upside and downside) are impossible to predict. Only invest funds that you will not need for the next 3 - 4 years. As long as you buy a stock for the right reason, and are convinced about the future prospects of the company, there is no need to worry if the share price goes down and stays down for a period of time after you buy; provided you have followed the cardinal stock market mantra BUY LOW (AND SELL HIGH).
Very important note: The objective of this blog is to share knowledge and info about multibagger ideas/opportunities. Neither is this trading website nor an analyst website nor a Buy/Sell call website. For stock market success, always do your home work, own analysis and make your own decisions.
