PARSVNATH DEVELOPERS LTD. BSE CODE 532780
Parsvnath Developers is a Real Estate Company having major presence in many cities.
Promoter group share holding is about 80 percent. Institutions and Bodies Corporate hold about 12 percent shares. Therefore, floating stock is very low.
The company has several integrated township and commercial complexes & 28 residential complexes in various cities in India.
The company’s share capital is 184 Crores and Net profit clocked for December Quarter 2007 was Rs.112 Crores giving an eps of Rs.6.09. Considering the trend for the past three quarters, the company is expected to clock in a Net profit of well over 440 Crores for FY 2007-08, giving an eps of about 22-24.
The Company has huge land bank, is practically debt free and the land value is its hidden wealth. The company’s recent projects are as under :
PARSVNATH ELGANZA
Parsvnath Developers Ltd has announced that the Company has launched the first of its kind mega mall cum multiplex, Parsvnath Eleganza in Dehradun. The Company will invest Rs 40 crore in developing the complex.Parsvnath Eleganza is the first such mall-cum-multiplex being developed in the city. Located at prime location of Rajpur Road, the mall comes with an added advantage of a 4-screen multiplex within the complex, which gives another reason to visit the complex. Having a saleable area of 1.5 lacs square feet, the mall is spread over four floors, will be fully air-conditioned and will have 100% power back-up at all times.Glass fronted lifts, aesthetic architecture and modern design will provide for complete comfort and a pleasurable shopping experience for its customers. The mall is designed for optimum space utilization for its shop owners. Latest fire alarm, fire fighting systems and round-the-clock security systems will ensure complete safety. The mall also provides a reserved area to accommodate parking needs of visitors.The mall will boast of premium national and international brands, departmental stores, retail chains and Fashion stores and will be a one stop for branded lifestyle products. Food courts in the mall will provide a comfortable venue for the window shoppers and also those who are looking at outlets for meetings and get to-gathers.The entire complex for which the construction has commenced is expected to be completed and operational with in one years.
HOTEL VENTURE
Parsvnath Developers Ltd on February 20, 2008 announced a joint venture between its subsidiary, Parsvnath Hotels Ltd (PHL) and Royal Orchid Hotels Ltd (ROHL), one of India's fastest growing hospitality Companies, to develop and manage hotels across country.PHL and ROHL have signed an agreement to form a joint venture where PHL will hold the majority stake of 70% with ROHL 30%. Royal Orchid Hotels will manage the hotels and the Joint Venture Company will own and develop these projects. The Joint Venture Company will operate under the name of "Parsvnath Royal Orchid Hotels".Under the agreement, Parsvnath Royal Orchid Hotels proposes to develop 10 hotel projects in next five years across India, categorized into four 5-star, four 4-star and two 3-star hotels, resorts and serviced apartments. The construction on these hotels would involve an investment of over Rs 500 crores spread over the period of three to five years.There would be at least 1000 rooms would be built under this Joint Venture.
Parsvnath Developers is a Real Estate Company having major presence in many cities.
Promoter group share holding is about 80 percent. Institutions and Bodies Corporate hold about 12 percent shares. Therefore, floating stock is very low.
The company has several integrated township and commercial complexes & 28 residential complexes in various cities in India.
The company’s share capital is 184 Crores and Net profit clocked for December Quarter 2007 was Rs.112 Crores giving an eps of Rs.6.09. Considering the trend for the past three quarters, the company is expected to clock in a Net profit of well over 440 Crores for FY 2007-08, giving an eps of about 22-24.
The Company has huge land bank, is practically debt free and the land value is its hidden wealth. The company’s recent projects are as under :
PARSVNATH ELGANZA
Parsvnath Developers Ltd has announced that the Company has launched the first of its kind mega mall cum multiplex, Parsvnath Eleganza in Dehradun. The Company will invest Rs 40 crore in developing the complex.Parsvnath Eleganza is the first such mall-cum-multiplex being developed in the city. Located at prime location of Rajpur Road, the mall comes with an added advantage of a 4-screen multiplex within the complex, which gives another reason to visit the complex. Having a saleable area of 1.5 lacs square feet, the mall is spread over four floors, will be fully air-conditioned and will have 100% power back-up at all times.Glass fronted lifts, aesthetic architecture and modern design will provide for complete comfort and a pleasurable shopping experience for its customers. The mall is designed for optimum space utilization for its shop owners. Latest fire alarm, fire fighting systems and round-the-clock security systems will ensure complete safety. The mall also provides a reserved area to accommodate parking needs of visitors.The mall will boast of premium national and international brands, departmental stores, retail chains and Fashion stores and will be a one stop for branded lifestyle products. Food courts in the mall will provide a comfortable venue for the window shoppers and also those who are looking at outlets for meetings and get to-gathers.The entire complex for which the construction has commenced is expected to be completed and operational with in one years.
HOTEL VENTURE
Parsvnath Developers Ltd on February 20, 2008 announced a joint venture between its subsidiary, Parsvnath Hotels Ltd (PHL) and Royal Orchid Hotels Ltd (ROHL), one of India's fastest growing hospitality Companies, to develop and manage hotels across country.PHL and ROHL have signed an agreement to form a joint venture where PHL will hold the majority stake of 70% with ROHL 30%. Royal Orchid Hotels will manage the hotels and the Joint Venture Company will own and develop these projects. The Joint Venture Company will operate under the name of "Parsvnath Royal Orchid Hotels".Under the agreement, Parsvnath Royal Orchid Hotels proposes to develop 10 hotel projects in next five years across India, categorized into four 5-star, four 4-star and two 3-star hotels, resorts and serviced apartments. The construction on these hotels would involve an investment of over Rs 500 crores spread over the period of three to five years.There would be at least 1000 rooms would be built under this Joint Venture.
The company had raised Rs.997 crores through IPO, FV of Rs.10.00 at Rs.300 per share. The share price saw a high of around 600 recently and due to market melt down, it has come down to Rs.270.00.
The share, in our opinion, is an excellent buy at the current prices with minimum downside risk. One can buy in small lots and if there is a dip of over 15-20 percent, more shares can be acquired.
Please Note : This share has been recommended by various other analysts also but our studies are quite independent.
a) We advise only regarding fundamentally strong and performing companies. The companies may be mostly profit making and in a few cases, they may be turn around companies.
b) Please go through our fundamental analysis carefully, verify the facts and figures (if you need to) and only then invest.
c) We expect investors to have a time horizon of at least one year and more.
d) We do not advise for short term investing, which is risky.
e) Despite all these, we do not take any responsibility for your financial matters. Investment is solely your decision.
(AJAY SINGH RATHORE)
KASHIWALA
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