Srinivasa Shipping & Property Development Ltd:

BSE Code:530810

Buy this scrip at the CMP of Rs.76.75 or on declines:

Are Media Channels forcing a slowdown in otherwise Stagnant Real Estate Market in the Premium Segment??

Is has been seen there not too much slowdown in the infra-structure spending by the government. There could be some slowdown; but way the Media Channels are portraying, the Real Estate and Construction Space, everyday to draw the eyeballs, points to some ulterior motive.....:

Are the Business Channels Connected with Rival Political Outfits, trying to paint a Sorry picture of the Present Indian Governent and the State of Economy to further their own selfish gains??!!

SSPDL (formerly Srinivasa Shipping and Property Development) is a three city Real Estate play in Bangalore, Hyderabad and Chennai.

For the FY08, SSPDL reported a near Rs 100 crore in Revenues and an EPS of Rs 18. The scrip effectively quotes at a historical PE of 4 while the Industry led by the Real Estate biggies quote a P/E of not less than 10. Hence SSPDL is highly undervalued as compared to its peers in this business. Taking into consideration that SSPDL will deliver about 7 mn sq feet of built up space in the form of built up malls, commercial real estate, residential houses, apartments and villas in cities with a reasonably affluent populace, the current valuations are simply not reflective of the Huge Potential, the scrip offers going forward.

With completion of ongoing projects SSPDL could become a Rs 1000 crore-pus company corporation by FY2010-12. A recent study released by Cushman and Wakefield proclaims that Rental values and Real Estate markets have stabilised in most parts of the country and with the onset of the festive season that lasts over the next half of the year, things could indeed begin to brighten up for the bettered Real Estate. Now with the Steel and Cement Prices remaining stagnant at a point, the good days are ahead for the real estate companies. In fact owning a house or an apartment has become a necessity rather a luxury for most of the Indian households due to soaring rent and depleted accomodations in most of the metro cities.

Yesterday, I heard the management of Purvankara Projects saying there is hardly any slowing down of demand in the Premium Segment and if there at all a slowdown it coould in the Tier--II and Tier-III developers. SSPDL is a property development company primarily developing commercial (IT parks, Shopping Malls, Hotel projects, service apartments etc) and residential properties (gated communities, villas, apartments and serviced plots) in Chennai, Bangalore, Hyderabad and Kerala. The company has a strong foot hold in the Chennai market and is gaining momentum in Bangalore and Hyderabad. The OMR (Chennai’s High Tech Corridor) is the main stay for the Company with over 3 million sq. ft (constructed and in planning) in the form of IT Parks, Shopping Malls, Hotel and Apartments.