SSPDL:The next multibagger?

Was reading an impresive report of maverick on SSPDL.So you guys read it too.

Scripscan:SSPDL
BSE code:530821
CMP Rs 65

Story:SSPDL (formerly Srinivasa Shipping and Property Development) is a three city Real Estate play on Bangalore, Hyderabad and Chennai markets. For the FY08, SSPDL reported a near Rs 100 crore in Revenues and an EPS of Rs 16. The scrip effectively quotes at a historical PE of 4 while the Industry led by the Real Estate biggies fetch a PE of 11.Considering that SSPDL will deliver about 7 mn sq feet of built up space in the form of built up malls, commercial real estate, residential houses,apartments and villas in cities with a reasonably affluent populace,the current valuations are simply not reflective of the potential. With completion of ongoing projects SSPDL could become a Rs 1000 crore corporation by FY2012.

Study Report: A recent study released by Cushman and Wakefield proclaims that Rental values and Real Estate markets have stabilised in most parts of the country and with the onset of the festive season that lasts over the next half of the year, things could indeed begin to brighten up for the sector.SSPDL is a property development company primarily developing commercial (ITparks, Shopping Malls, Hotel projects, service apartments etc) and residential properties (gated communities, villas, apartments and serviced plots) in Chennai, Bangalore, Hyderabad and Kerala. The company has a strong foot hold in the Chennai market and is gaining momentum in Bangalore and Hyderabad. The OMR (Chennai's High Tech Corridor) is the main stay for the Company with over 3 million sq. ft (constructed and in planning) in the form of IT Parks, Shopping Malls, Hotel and Apartments.

Projects under Execution with expected dates of completion:
Matrix Towers, Chennai – April 2008
SSPDL Avion, Hyderabad – May 2008
Bangalore Retreat – December 2009
OMR Mixed Development Project, Chennai – September 2010
OMR Residential Project, Chennai – December 2009
Hyderabad Retreat, Hyderabad – December 2012
The Retreat, Kallar Valley, Kerala – Dec 2010

Project value:The value of projects under execution exceeds Rs 2000 crore withover 7 Million Sq. ft of Built Up Space aggregating to a Sale Value of Rs.1800 Crores Plus in various stages of execution. SSPDL has also announced plans to take up the following projects:
Gundla Pochampally/Kompally, Hyderabad – a 40+ acre residential gated
community.
Bangalore-Mysore Highway Project – a 60+ acre residential community.
Montieth Road Property Chennai – Office space.
The Retreat, Hyderabad has an SEZ as an integral part of the project.

Plans:SSPDL has appointed Surbana, the Singapore based architects for this project and currently planning is underway. The earliest revenues will be recognized from 3rd quarter of 2008.At Kallar Valley in Kerala SSPDL has acquired about 325 Acres of pristine Plantation Land with natural forest and waterfalls, springs etc.The site is located in the Hills and is a 2 hour drive from Kochi Airport.SSPDL intends to put up a 20 acre world class resort with a Hospitality
Partner. Besides that,it will promote Vacation Homes of super luxury
quality by invitation only.In addition, the Company has been awarded construction contracts aggregating to Rs 78.20 Crores for the following works from third parties.
(i) Construction contract with NBCC, Hyderabad for construction of 1.5 lakh sq feet office building.
(ii) Construction contract of warehouse for SAIL Ltd at Vizag.
Construction contract for 50 villas for Ferns-Regalia Realty Ltd,Chennai.

2. SSPDL Infrastructure Developers Pvt Ltd, a SPV held jointly by the
Company together with Innovative Realty Opportunity Fund Ltd have entered into a sate agreement with Accor Group of Hotels for hotel space in "The Promenade" Project, at Egattur, OMR, Chennai.

3.SSPDL Ltd and Indiareit Fund Advisors Pvt Ltd through their SPVs have acquired 42 acres in Gundtapochampalty village, Hyderabad to develop a gated residential villa community "SSPDL Northwoods". Total estimated project value is Rs 250 crores.

Conclusion:Considering all these sspdl can be a multibagger in the months to come.Downsides seems low with immense upside potential.

Regards,
ARUN
I may be reached at-arunanalyst@rediffmail.com