Macquarie initiates ‘Outperform’ rating on Anant Raj Industries
Macquarie initiates coverage on Anant Raj Industries (ARIL) with an `Outperform’ rating and target price of Rs 180.
By ET Bureau |
RESEARCH: MACQUARIE
RATING: OUTPERFORM
CMP: RS 135
Macquarie initiates coverage on Anant Raj Industries (ARIL) with an `Outperform��� rating and target price of Rs 180. Nearly 90% of ARIL���s land bank is focussed around the National Capital Region. This geography is at the forefront of the ongoing revival in the Indian real estate market.
After going through a painful period in CY08, which saw a collapse in primary sales and exit by speculators, the NCR has seen a sharp revival in interest. Conversations with the management of three property companies and brokers suggest that the NCR has seen the smartest rebound in residential market volumes .
Over 10 million sqf of residential property was sold in project launches since March ���09. Meanwhile, enquiries for commercial space have seen initial signs of a pick-up . ARIL is trading at a 39% discount to NAV. This is notable given that most Indian property stocks trade at only 5-10 % NAV discounts and with modest premiums in some cases. This is primarily because of the concentrated land bank and exposure to the commercial and hospitality sectors. ARIL should benefit from the NAV upgrade cycle, which Maquarie expect over the next two-three years.
RATING: OUTPERFORM
CMP: RS 135
Macquarie initiates coverage on Anant Raj Industries (ARIL) with an `Outperform��� rating and target price of Rs 180. Nearly 90% of ARIL���s land bank is focussed around the National Capital Region. This geography is at the forefront of the ongoing revival in the Indian real estate market.
After going through a painful period in CY08, which saw a collapse in primary sales and exit by speculators, the NCR has seen a sharp revival in interest. Conversations with the management of three property companies and brokers suggest that the NCR has seen the smartest rebound in residential market volumes .
Over 10 million sqf of residential property was sold in project launches since March ���09. Meanwhile, enquiries for commercial space have seen initial signs of a pick-up . ARIL is trading at a 39% discount to NAV. This is notable given that most Indian property stocks trade at only 5-10 % NAV discounts and with modest premiums in some cases. This is primarily because of the concentrated land bank and exposure to the commercial and hospitality sectors. ARIL should benefit from the NAV upgrade cycle, which Maquarie expect over the next two-three years.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
