Scripscan:Patel Engineering Ltd
cmp:165
Traded in:Nse-bse
Story:IT HAD been a long time since The Insider had received any phone calls or messages from Shah Bhai. The Insider was worried whether the wild movements of the market had inflicted any side-effects on his health. But as always, Shah Bhai''s thirst for ''andar ki khabar'' had kept him busy. After a detailed discussion, The Insider came to know about further developments in Patel Realty India, a fully owned subsidiary of Patel Engineering, a Mumbai-based construction company. Patel Realty has already kick-started some development activity. It has a land bank of approximately 1,000 acres in metros such as Mumbai, Chennai, Bangalore and Hyderabad. According to Shah Bhai, the company is now planning to offload stake in its real estate arm to strategic investors and list this company on the bourses to unlock value for shareholders.Shah Bhai said that on a conservative estimate, the raw land on an ''as is where is'' basis is valued at over Rs 2,000 crore and the valuation can be added in terms of the potential for development of more than 75 million sq ft of built-up space. If this built-up space is valued at a highly conservative price, taking the average realisation of all the development components at Rs 2,500 per sq ft, the total value of the development can easily be estimated at a staggering Rs 22,000 crore, which is the direct revenue generated from the company''s real estate development in the next 3-5 years. Apart from this, just the cost of development will increase the order book of Patel Engineering's construction contracts by a few thousand crores.
Important Disclaimer&Privacy policy
This blog does not share personal information with third parties nor do we store any information about your visit to this blog other than to analyze and optimize your content and reading experience through the use of cookies.You can turn off the use of cookies at anytime by changing your specific browser settings.This privacy policy is subject to change without notice and was last updated on 20.3.2013. If you have any questions, feel free to contact me directly here: arunsharemarket@gmail.com
Investment in equity shares has its own risks.Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that I consider reliable. I,however,do not vouch for the accuracy or the completeness thereof.This material is for personal information and am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations above.The stock price projections shown are not necessarily indicative of future price performance.The information herein, together with all estimates and forecasts, can change without notice.
