Indiabulls Real Estate Stock Rises
The real estate company’s stock rose by 64% in the last month, since the company’s performance was affected by anticipation of economic development. Goldman Sachs analysts say that better project executions and affordable valuations have made it the preferred stock. Standard Chartered analysts note that there has been a major improvement of main project executions in central Mumbai, like Sky Forest, Sky, and Bleu. Motilal Oswal Securities analysts also add that pre-sales brought in Rs. 5,200 crore, and the cash flow visibility was good. The inventories that were not sold were Rs. 12,500 crore.
On Wednesday, the company’s stock closed at an increase of 9%, at Rs. 106.25 on the BSE. Indiabulls intends on launching 8.7 million sq. ft. throughout the country, and 88% of that will be in Gurgaon. They have leased out 82% of their Singapore-listed trust, IPIT’s office space too. Q1 pre-sales activities of 0.5 million sq. ft. were slow this year, in comparison to the 0.6 million in Q4 last year.
The Indiabulls stock trades at 0.4 times its FY14 price-to-book value and gives shareholders a dividend yield of 5%. The stock’s debt-equity ratio is 0.4, which is less in comparison to its competitors. It is being traded at 4-5 times the enterprise value/earnings before interest, tax, depreciation, and amortisation (EBIDTA) and 5.3 times its FY15 price-to-earnings multiple.
The aim for FY14 to reach Rs. 4,000 crore failed, but they did achieve Rs 3,100 crore for pre-sales.
When compared to the past year the stock moved slower, but it was better than its competitors in Gurgaon and Mumbai. The prediction by analysts at Motilal Oswal Securities for FY15 and FY16 is that pre-sales rates will be Rs. 3,100 crore and Rs 3,400 crore, respectively.
Source: Business Standard
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