Indian Stock Market Blog

Normally analyst community and investors would talk about the PE at which the company will trade after equity dilution and the fundamentals when a company comes out with an IPO. But, I would rather like to talk about the company itself and keep the financials for the analyst to talk about.

Sobha Developers Ltd. (SDL) is a leading player in the residential and contractual projects having vast land reserves of approximately118 million sq. ft. The land reserves of the company are approximately amounting between Rs.39717 million to 43898 million (net of developers margins).The company primarily focuses on Southern Indian region for its business.

Source: Sobha Developers Limited.

The company specializes mainly in residential properties such as presidential suites, lands, villas, row houses, luxury and super luxury apartments including swimming pool, clubhouses and shopping complexes. On the contractual front the company has developed corporate block for Infosys Technologies and likes.

SDL is a one stop shop which provides not only development of property but has resources to provide services right from conceptualization to completion of the project.This has been possible due to its backward intergration model which includes architectural and design studios, concrete block making machines (imported from Germany), wood working and interior division, metal working and glazing factory, mechanical,electrical and plumbing division.

Skilled labour, trained tradesmen and qualified management and architectural team which works on scalable, modular and versatile project delivery model enables timely and cost efficient delivery of projects. And its German consultants and technologically advanced German tools ensure that the quality standards of the projects stay up to the mark. All processes and methodologies are documentated to create a standardized criteria for every project execution and completion.

Due to above mentioined reasons the company has been able to complete asthetically appealing architectural beauties from palaces in Oman to pyramidal and geodesic dome- shaped structures in Southern India.

The key strategies that the company would like to follow for its growth expansion are:

1. Geographical diversification of its projects.

2. Portfolio diversification

3. Maintain high standards of quality

4. Engage in more contractual projects.

5. Broaden its products offering by including retail products like furnishings and interiors.