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smartcat
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Joined: 29/Mar/2007
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   Topic: DLF - The Big Daddy of Real Estate
Posted: 09/Jul/2007 at 6:20pm |
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Gist of report by Motilal Oswal on DLF -
Y/E MARCH 2007 2008E 2009E 2010E
Sales (Rs. b) 39 113 123 142
NP (Rs b) 19 60 71 80
EPS (Rs) 12.7 35.0 41.8 47.0
P/E (x) 44.9 16.3 13.7 12.1
RoCE (%) 30.0 43.4 45.3 46.7
- Has a landbank of 13,000 acres and total developable area of 610 m sq ft. 42% is in Delhi NCR region. Added 2800 acres for an acquisition price of Rs. 250 per sq ft since filing its Red Herring prospectus.
- Expected rental income to increase from Rs. 600 crores in FY08 to Rs. 4,300 crores by FY12
- DLF to enter life insurance business with Prudential of USA (this is different from Prudential of UK, with whom ICICI Bank has a tie up).
- Will have a marketshare of 16% in commercial real estate development by FY10
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basant
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Posted: 09/Jul/2007 at 11:01pm |
This is nonsense!!! Real estate stocks are never evaluated on the basis of PE and EPS what if DLF sells all its property this year where will the EPS come in the next year? SOmeone should tell them that a company that sells its assets(land) each year should be evaluated on the basis of assets to market cap rather then any other traditional valuation matrix.
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s_praharaj
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Posted: 09/Jul/2007 at 12:10pm |
Moreover the Land Bank is simple bullsh*t.
There is no clear valuation to the Land bank, that DLF is boasting of.
I admit they are a quality construction company and have a good name, but I feel risky with such valuations.
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Shashi Praharaj
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smartcat
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Posted: 09/Jul/2007 at 12:28pm |
Unfortunately, future estimated value of land (assets) can only be made by real estate consultancy firms like Knight Frank or Cushman & Wakefield. And that too, only if they have access to exact locations of the land owned/part-owned by DLF. It would be almost impossible for brokerages to come up with these numbers. This brokerage probably had a discussion with management about the assets that will be sold, approximate development of properties in sq ft for each year and then assigned value per sq ft developed (by assuming a very conservative increase in value each year). Quoting from the report -
| Key Assumptions: ‘NO’ price increase in NCR region for apartments during FY08-17 and for commercial and retail during FY08-FY12. We have assumed a price CAGR of 5% in commercial and retail space in NCR from FY13. Stagnant prices for all cities and all verticals (residential, commercial and retail) for FY08 and FY09. |
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xbox
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Joined: 10/Sep/2006
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Posted: 09/Jul/2007 at 5:29am |
Despite all criticism, DLF has listed quite well (most people thought of below issue price listing etc. etc.). Guy who applied to IPO made more money in DLF than Vishal Retail.
No doubt mcap is huge but when there are takers, there is no problem.
<<On different note, country;s major real-estate companies have started from same city, Gurgaon. Be it Unitech, Vipul, IBREL or DLF. If we cover NCR region, we can name few more like..eldeco, omex, parsvanath.
Sometimes, I fail to understand what it so unique about Gurgaon, which is absent everywhere else ? Somebody said Bangalore of IT....  >> |
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Don't bet on pig after all bull & bear in circle.
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CHINKI
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Joined: 07/Feb/2007
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Posted: 09/Jul/2007 at 10:26am |
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Vipulji, Sobha Developers are from Bangalore.
Recently lot of PE investments have been happening in the real estate. Some of the beneficiaries are Prestige Constructions, Nitesh Estates, Divyasree, Mantri Developers and so on are all from Bangalore.
Purvankara's IPO is expected to hit the market any time from now. Incidentally they are also from Bangalore.
Builders from Bangalore have already created niche and name in the market. They are expanding in a big way in other Southern States.
Without hurting anybody's sentiments, People from North make lot of noises but do less work. It is just the other way around.
Imagine what Narayan Murthy would have done if he were to be from North India?? First thing for sure, he would have been in politics.
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TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO
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vip1
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Posted: 09/Jul/2007 at 10:35am |
Without hurting anybody's sentiments, People from North make lot of noises but do less work. It is just the other way around.
PLEASE, DO NOT PUT YOUR PERSONAL PREJUDICES ON THE FORUM !
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xbox
Senior Member
Joined: 10/Sep/2006
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Posted: 09/Jul/2007 at 10:39am |
Without hurting anybody's sentiments, People from North make lot of noises but do less work. It is just the other way around.
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Chinki jee...I don't know what promoted you for such a loose talk. Very very disappointed with it. Poor comprehension!!!!.  |
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Don't bet on pig after all bull & bear in circle.
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