the real gem lies in the company's subsidiaries - the mahindra world cities. The management has played its cards very nicely by tying up with state governments to develop properties that have already been acquired.

The company has also not hesitated in exiting projects where there is a question mark over land acquisition. That is the biggest example of its prudence.

it looks like it is foregone conclusion that we won't get clean real estate play ever.. I'm betting on Godrej Prop. due to its own land. I was thinking of adding Mahindra due to cleaner image. Anant raj is a real shocker..it appeared to be cleaner and had conservative approach. don't know how to judge these managements

well if you don't believe me then lets believe the market. It would almost be 1 year of listing and it has always traded premium to its NAV. Even current NAV of 573 is below CMP. This is not complicated as it made out to be. What I have understood till now is all land is owned by either Godrej & Boyce or Godrej Ind.. It has been articulated that all land holdings by group will be developed by Godrej Prop. so in a sense raw material is assured. A real estate company pays hard cash for acquiring land but here it pays profit share which is biz model exactly. String of agreements between grp companies are done to protect minorities in each of these companies. You can't even think of doubting their dealings.

Reason for so many SPVs in real estate/infra sector is well known. If you sell stake at SPV level you only pay capital gains tax but if you sell apartments etc you actually pay income tax(31%). Most of the PE investors in Godrej prop are marquee names including extensive involvement by HDFC. I would remain bullish.

Originally posted by barla   This is the error people make on godrej properties. It has hardly any land. The land is owned by the other godrej companies. Special purpose vehicles ahve been created in which the land owner and godrej properties ahve defined stake. Godrej properties then develops the land and the profits are divided proportionate to the sahre in the said SPV.   It is so compliacted i do not think an outsdier can value the holdings. There are more than 10 SPVs already in place. And they also want to get outside investors to invest in some of the SPVs.   Originally posted by FutureBull it looks like it is foregone conclusion that we won't get clean real estate play ever.. I'm betting on Godrej Prop. due to its own land. I was thinking of adding Mahindra due to cleaner image. Anant raj is a real shocker..it appeared to be cleaner and had conservative approach. don't know how to judge these managements

GODREJ PROP

if the company owns so much land, why are the sales declining yoy , the sales have not increased since last 3 years. the PE multiple is very high on ttm basis.
owning land at prime location is a big positive but what is stopping the company in developing the property ,selling it and improving sales.

Mahindra lifespace - the sales are increasing yoy, the promoters are good and hence we can be optimistic of a good management,  the PE is also less on ttm basis.  Company is DEBT FREE .