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Syndicate - 02
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INDIAN REALTY – STILL A REALITY

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In 1991, our Finance Minister Manmohan Singh had
concluded his maiden budget presentation with
these words …….

“ No power on earth can stop an idea whose

time has come .”

And time has came for….

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 REAL ESTATE
And the new age dictum is
…………

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“ INDIA

UNDER

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 AGENDA
• Introduction
• Current Scenario
• Growth drivers
• 10 Major Players
• Future Reality 2020

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 Introduction
• The strong fundamentals of the Indian economy
are having a favorable impact on all asset classes
of Indian real estate viz. housing, commercial –
office space and retail and hospitality.
• In recent years, the growth has spread out to tier-
II and III cities as well.
• High growth in services as well as
manufacturing sector has resulted in high demand
for commercial and industrial real estate.
• Further the economic growth has trickled down
to the large Indian middle class increasing
affordability and affluence. Improving living
standards are driving the demand for better
quality housing and urban infrastructure.
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 • Second largest employer
next only to agriculture.

• USD 12 million industry.

• Growing at 30% year on

year.

• 5% share in country GDP.

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Growth Drivers

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 Top Key Players in India
DLF

Sobha Developers

Unitech

Vipul
Infrastructure

Amrapali's group

India Bulls Real State

Jaypee Infratech
Sun City developer

HDIL
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Financial Management - Syndicate - 02 Ashiyana housing
Name Service Profile Presence

DLF Accredited to be largest real state Pan-India

developer in India, DLF city is township footprint
spread over 3,000 acres in Gurgaon,
Haryana, Asia’s largest private township

Sobha Developers Plotted development, multi-storey Pan-India

buildings, row houses, villas and integrated footprint
township.

Unitech Residential, Commercial, SEZ development, Pan-India

Retail and Hospitality. footprint
Integrated townships at a number of cities.

Vipul Infrastructure Residential and commercial development NCR

Amrapali’s Group Residential condominiums, commercial Pan-India

plaza IT PARKS and residential plot footprint
townships
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Financial Management - Syndicate - 02
Name Service Profile Presence

India bulls Real Estate Real Estate Development, Project Advisory Pan-India
and Facilities Management: Residential, footprint
Commercial (Office and Malls) and SEZ
Development, Power: Thermal and Hydro
Power Generation.
Sun city Projects pvt ltd Group housing , luxury Apartments, Pan-India
shopping Malls, Office Complexes. footprint

Jaypee Infratech Residential, Commercial (Office and Malls) Pan-India

and SEZ Development, Power: Thermal footprint
and Hydro Power Generation, Highway
Development.

Ashiyana Housing Residential and commercial development Pan-India

footprint

HDIL Residential and commercial development, Pan-India

hospitality and the development of SEZs, footprint
slum rehabilitation projects .
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Founded in 1946
DLF Group is one of the biggest real estate giants
Built many high-quality buildings across the country,
specifically in Gurgaon
Tied up with Hilton Group to build whopping 100
hotels in India over the next few years.
In current expansion plans, DLF has over 425 million
sq. ft. of development across its businesses, including
developed, on-going and planned projects.
Spread over 32 cities, mostly in metros and key urban
areas across India

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Key Financial Ratios of DLF ------------------- in Rs. Cr. -------------------

Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

Current Ratio 1.51 1.75 2.34 2.96 5.47

Quick Ratio 1.91 1.36 3.28 3.83 3.58
Debt Equity Ratio 4.67 10.37 0.74 0.78 0.99
Gross Profit Margin(%) 31.63 47.79 55.41 58.30 39.82
Net Profit Margin(%) 19.86 28.38 42.49 40.36 --
Inventory Turnover
2.43 0.33 -- -- --
Ratio
Fixed Assets Turnover Ratio 1.88 1.44 -- --
Total Assets Turnover Ratio 0.26 0.15 0.28 -- 0

Market Cap 43004.43 * EPS (TTM) 5.56 *

P/E 45.57 * P/C 40.21 *
Book Value 75.58 * Price/Book 3.35
Div(%) 100.00% * Div Yield(%) 0.79
Market Lot 1.00 Face Value 2.00
Industry P/E 26.87
Founder: • Founded in 1995
Mr. P N C Menon
• Rs. 10 billion plus company is one of the
largest and only backward integrated
company in the construction arena
• Sobha has completed 47 residential
projects, 13 commercial projects and 166
contractual projects covering about 36
million sq. ft. area in 18 cities across
India (as of 31 March 2010).
•

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 Key Financial Ratios of Sobha

Market Cap 2767.36 * EPS (TTM) 20.18 * P/E 13.98 * P/C 12.02 * Book Value 174.22 *
Price/Book 1.62 Div(%) 25.00% * Div Yield(%) 0.89 Market Lot 1.00 Face Value 10.00
Industry P/E 26.87
 Established in 1972
 It is the first developer to have been certified ISO
9001:2000 in North India.
 The first real estate company to be part of the
National Stock Exchange's NIFTY 50 Index.
 The company has over 600,000 shareholders.
 Unitech and Norway based Telenor Group - the
6th largest mobile communication provider in the
world.
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 Key Financial Ratios of Unitech
Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

Current Ratio 0.48 0.94 1.02 0.85 1.19

Quick Ratio 0.46 0.94 1.24 0.97 1.23

Debt Equity Ratio 3.06 3.11 3.79 2.69 0.62

Gross Profit Margin(%) 17.16 51.63 51.33 56.16 37.43

Net Profit Margin(%) 10.32 39.22 39.41 30.54 24.77

Inventory Turnover Ratio 20.91 76.52 262.76 279.75 878.20

Fixed Assets Turnover Ratio 0.43 0.77 18.83 11.89 12.24

Total Assets Turnover Ratio 0.72 0.51 0.24 0.17 0.14

 Promoters :
Mr Punit Beriwala

 Vipul (erstwhile Vipul Infrastructure Developers) was

incorporated in 1991.
 Gurgaon-based real estate developer ventured into
real estate development in 1997.
 Forayed into residential development in ’02,
delivering 0.78mn sqft till date.
 Vipul Group also has facility management and
construction consulting ventures.

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 Financial Ratios
Particular 201003 200903 200803 200703 200603
Liquidity Ratios          
Debt/Equity Ratio 0.57 0.51 1.07 3.66 1.98
Current Ratio 2.16 1.80 1.44 1.20 1.10
Turnover Ratios          
Inventory
0.68 0.98 0.73 0.77 1.13
Turnover Ratio
Fixed Assets
16.94 34.45 48.10 46.43 39.29
Turnover Ratio
Debtors Turnover
4.36 12.93 17.00 9.75 7.13
Ratio
Interest Coverage
1.56 2.09 3.14 2.82 3.43
Ratios
Profitability Ratios          
Operating Profit
26.83 12.63 34.77 49.28 14.11
Margin
PAT/Total Income 5.78 4.71 10.55 11.37 2.91
NPM (Net Profit
6.16 4.30 14.65 20.86 6.27
Margin)
Return on Capital
13.25 10.11 24.64 57.52 52.75
Employed
Return on
4.88 5.35 21.77 114.16 72.00
Networth
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 Founder:
Shri Madan Mohan Sharma

 The name Amrapali has been drawn from a historical queen, who
was reputed to have the beauty and elegance of the likes of Cleopatra.
 Earthquake resistant RCC frames that are structurally designed and
tested by IIT Delhi engineers as per ISI codes take care of the seismic
activity that is common in the Delhi region.
 The latest technology and state-of-the-art building materials like
ready-mix concrete and modern construction equipment are in use on
all its sites.
 Fire safety requirements are duly met. High specifications like modular
kitchens, ISI fitment doors and widows, electrical copper wiring,
modular switches, Indian and Italian white marble flooring and
ceramic tiles are used in every project

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 Project of The Company

• Commercial project : Maneshar ,Bareilly,

Vrindavan
• Hotel and Resorts : Oberoi group of hotels
• IT Park : CISCO, Satyam, Virgin Atlantic Airways,
HCL Tech, Infosys, Patni Computers, IBM, TCS.
• Residential project :Awadh , Exotic Apartment,
Grand, Kanha, Platinum, Royal,Vashali,Village.
• Township project : Hi Tech City Jaipur , Amrapali
City Indore.
 Financial Ratios
Particular 2010 2009 2008 2007
Debt/Equity Ratio 0.00 0.89 1.81 3.46
Current Ratio 0.84 1.59 5.81 2.46
Inventory Turnover
Ratio 857.51 12938.32 2183.11 0.00

Fixed Assets
Turnover Ratio 441.58 822.05 140.86 185.47

Operating Profit
Margin 0.12 0.19 0.89 0.45

PAT/Total Income 0.02 0.01 0.64 0.33

Return on Capital
Employed 13.70 33.00 21.22 13.57

Market Cap N.A * EPS (TTM) - * P/E 0.00 * P/C 0.00 * Book Value 10.75 * Price/Book -
Div(%) * Div Yield(%) - Market Lot 1.00 Face Value 10.00 Industry P/E 175.60
 Established in 2000.
 IREL is poised to be one of the largest listed
real estate companies in India.
 The Company has been short listed as a
qualified bidder for the Dharavi
Redevelopment Plan.

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 Financial Ratios
• Market Cap 4863.11
• EPS (TTM) 1.48
• P/E 81.69
• P/C 78.00
• Book Value 159.47
• Price/Book 0.76
• Div(%) 0.00%
• Div Yield(%) - 1.00
• Face Value 2.00
• Industry P/E 26.87
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 Founder:
Rao Jodhpur

 Promoted by the some of the biggest

conglomerates of India :
 ESSEL GROUP,
 ACTION GROUP and
 ODEON BUILDERS

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 Financial Ratios
• Market Cap 1.11
• EPS (TTM) 1.23
• P/E 1.83
• P/C 1.06
• Book Value 16.94
• Price/Book 0.13
• Div(%) 0.00%
• Div Yield(%) - 1.00
• Face Value 10.00
• Industry P/E 7.13
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 Founder:
Mr. Jaiprakash Gaur

 Incorporated on April 5, 2007

 the Concession from the YEA to develop, operate
and maintain the Yamuna Expressway in the state
of Uttar Pradesh, connecting Noida and Agra.
 Business model consists of earning revenues
from traffic and related facilities on the
expressway during the 36-year Concession period
 And development of associated real estate
pursuant to the Concession.
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 Market Cap (Rs Cr.): 7,743
Financial Ratios
Attribute Value Date

PE ratio 14.23 18/03/11

EPS (Rs) 3.98 Mar, 10
Sales (Rs crore) 755.38 Dec, 10

Face Value (Rs) 10  

Net profit margin (%) 74.68 Mar, 10

Last dividend (%) 7.5 24/01/11

Return on average equity 24.82 Mar, 10

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Financial Ratios - Particular Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

Investment Valuation Ratios

Face Value 10.00 10.00 10.00 10.00 10.00
Dividend Per Share 2.00 2.50 1.50 -- 1.50
Operating Profit Per Share (Rs) 5.28 14.69 20.78 10.74 21.11
Net Operating Profit Per Share (Rs) 62.68 92.82 65.84 44.14 56.24
Free Reserves Per Share (Rs) 30.70 45.86 24.03 37.89 55.15
Liquidity And Solvency Ratios
Current Ratio 0.95 0.92 0.97 1.16 1.95
Debt Equity Ratio 0.04 0.03 0.01 0.01 0.06
Long Term Debt Equity Ratio 0.02 0.01 0.01 0.01 0.06
Total Debt to Owners Fund 0.04 0.03 0.01 0.01 0.06
Financial Charges Coverage Ratio 43.58 130.35 843.69 356.37 41.92
Management Efficiency Ratios
Debtors Turnover Ratio 69.29 61.96 54.31 44.65 375.20
Investments Turnover Ratio 0.68 0.90 3.25 1.54 1.67
Fixed Assets Turnover Ratio 9.47 6.04 -- -- 4.91
Total Assets Turnover Ratio -- -- -- -- 0.81
Asset Turnover Ratio 5.88 3.62 8.02 4.27 4.91
Profit & Loss Account Ratios
Dividend Payout Ratio Net Profit 26.54 16.16 8.88 -- 8.68
Dividend Payout Ratio Cash Profit 25.04 15.59 8.75 -- 8.43
Earning Retention Ratio 64.96 81.16 90.79 100.00 91.03
Cash Earning Retention Ratio 67.53 81.93 90.93 100.00 91.29
AdjustedCash Flow Times 0.25 0.11 0.02 0.03 0.22
Earnings Per Share 8.59 18.09
Financial Management 19.75
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Book Value 40.98 56.15 34.11 47.97 65.23
 Founder :
Mr. Rakesh Kumar Wadhawan

• one of India’s premier real estate development companies,

with significant operations in the Mumbai Metropolitan
Region.
• Listed in BSE/NSE in July 2007.
• HDIL group has completed more than 100 million sq.ft of
construction.
• HDIL is among the top-five listed real estate companies in
India.
• HDIL has diversified into leisures (HDIL Leisures) and
multiplexes (HDIL Entertainment) and both businesses
benefit from HDIL's expertise in real estate.
Strong track record of performance, consistent growth and profitability
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 Financial Ratios
Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

Current Ratio 1.50 2.02 8.98 8.39 8.32

Quick Ratio 0.47 0.61 1.30 1.25 1.79

Debt Equity Ratio 1.06 0.52 0.86 0.93 0.58

Gross Profit Margin(%) 29.03 50.54 70.95 75.60 76.70
Net Profit Margin(%) 25.82 44.12 57.61 45.77 37.68
Inventory Turnover Ratio 1.01 1.07 0.47 0.27 0.19
Fixed Assets Turnover Ratio 14.15 15.00 43.03 27.32 7.90

Total Assets Turnover Ratio 1.11 1.09 0.35 0.20 0.13

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 Conclusion
As an investor considering the above
conditions we would like to invest in ::
Sobha Developers,
Jaypee Infratech,
Ashiana Housing and
Suncity.

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 Thank you

Queries…..
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