Scripscan:Ajmera Realty & Infra India Ltd
BSE code:513349
cmp:117
Story:The idea of picking up a real estate stock was that we have been seeing renewed interest in the sector. Taking a call on Ajmera Realty, if I go by the land bank held by the company, I find the all the land held are fully paid, that means, nothing has to be paid on the land account.Apart from that, majority of them are under development, except for a tranche of 67 acres which the company is holding at Kanjurmarg, Mumbai. The net present value (estimated) is about Rs 3000 crore, and on that, a composite development plan of residential, commercial, shopping, multiplexes, hospitality is expected. 72 acres of land will translate into developable of about 10 million sq feet, so that is going to take place maybe in the next 6 months.They have a second project at Wadala, with about 2 million sq feet of land bank. The net present value of that is estimated at about Rs 2,000 crore. They also have presence in Bangalore and suburbs of Mumbai at Kalyan.If I take a call on these land stocks held by the company, the net present value works out to about Rs 5,000-6,000 crore while the market cap is just Rs 400 crore.Since the company does not have any debt obligations, no unpaid land, no controversy with respect to ownership or possession of land, I think they are in a superior position to take advantage of this situation. Going forward, they should be able to monetize these land assets which will reflect in the working of the company. Taking that into consideration, the share has a potential to move to about Rs 200 in the next 18 months.
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.
