Indiabulls Retail Services Ltd
Printed From: The Equity Desk
Category: Investment Ideas - Creating winning portfolios!
Forum Name: Stock Synopsis
Forum Discription: A bried discussion of companies on very specific matters. Normally this is the prelude for further research as always members would be discussing quality companies with good management only
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=1919
Printed Date: 20/Apr/2025 at 8:16am
Topic: Indiabulls Retail Services Ltd
Posted By: kumardiwesh
Subject: Indiabulls Retail Services Ltd
Date Posted: 24/Sep/2008 at 1:08am
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Indiabulls Retail is a lifestyle retail and convenience store chain with over 42 stores spread over more than 10 lakh square feet. The company's retail plans include an investment of Rs 1500 crore to build 30 hypermarkets over the next 15-18 months.
Major advantage of Indiabulls retail stems from the fact that Indiabulls has huge real estate advantage on its side, thus hedging out land supply and rentals which have of late become a major cost to the retailers. Indiabulls have also got broking and consumer finance divisions and they plan to acquire several clients through Indiabulls retail's stores. ------------- "History does not tell you the probability of future financial things happening" - Warren Buffett |
Replies:
Posted By: shivkumar
Date Posted: 24/Sep/2008 at 1:11am
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But does Indiabulls and other real estate companies have the title the land? Many of these companies' claim land banks include land for which they only have an agreement to buy. Usually, getting the land in their names come after years of litigation. That's why I like Mahindra Lifespace in this sector. The company develops SEZs from lands provided by development authorities of state governments. So they are not embroiled in litigation so far. |
Posted By: basant
Date Posted: 24/Sep/2008 at 10:11am
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Never invest in any company which is not within the top 3 of any emerging sector. Look at the mobile telephony story for clues on this thesis. ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: shivkumar
Date Posted: 24/Sep/2008 at 11:07am
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Mahindra Lifespace enjoys a first mover advantage. A number of international manufacturing companies are already functioning from the SEZ set up by ML outside Chennai. The company is leveraging on its experience at the Jaipur SEZ as well. Other things going for ML include lower debt and management's plan to expand using internal accruals. Interest rate burden would be far lower. (In the short-term one can expect the company's construction business to suffer from the downturn. Hopefully the next quarterly results will bring about some amount of pessimism regarding the company's stock!) While the biggies like DLF and Unitech are now available at P/Es of 4 and 5, ML is still going strong at a P/E of 20. The promoters obviously enjoy higher credibility among investors..... |
Posted By: bassein
Date Posted: 24/Sep/2008 at 11:27am
I hope you mean optimism! I'm already down 33% in MAHLIFE  . It's my only exposure to the realty sector. With each Rs. 25 fall, I'm optimistically increasing my weightage! |
Posted By: shivkumar
Date Posted: 24/Sep/2008 at 11:33am
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pessimism is what i meant. The company has a number of construction projects in the housing sector which is experiencing a slowdown. The SEZs are managed by wholly owned subsidiaries whose consolidated results come only at the end of the year. So in the short-term the stock would be battered even though the share of the construction business in the overall pie of ML is lower. When the so-called sector leaders are available at P/Es of four and five, don't expect ML to stay afloat at higher levels for long! Will add at below Rs 300 levels, funds permitting! |
Posted By: Vivek Sukhani
Date Posted: 24/Sep/2008 at 11:33am
say this in a hush-hush tone......dont say this loud.
What has not fallen, may be the next one coming, you never know......
Has the capital structure different from what it was when it was known as mahindra GESCO. I sold it in its old avtaar at nearly 600+ and withing days of my selling the stock zoomed to 1200+, but thereafter the stock has had a different kind of price behaviour.
Also, I remember a day when the markets were down very hugely and Mahindra Gesco made a 15-20 p.c. plus move. May such days repeat in future too.....
------------- Jai Guru!!! |
Posted By: kumardiwesh
Date Posted: 26/Sep/2008 at 1:55am
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I think Indiabulls is run by very competent people - Rajiv rattan and Sameer Gehlaut. ------------- "History does not tell you the probability of future financial things happening" - Warren Buffett |
Posted By: kanagala
Date Posted: 27/Sep/2008 at 9:10pm
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Govt clear 27 more SEZs. Why do we need some many SEZ's. Why slowdown is not effecting SEZ's.
------------- While one person hesitates because he feels inferior, the other is busy making mistakes and becoming superior. |